ON Semiconductor Corporation (ON)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 8,253,000 | 8,326,200 | 6,739,800 | 5,255,000 | 5,517,900 |
| Receivables | US$ in thousands | 935,400 | 842,300 | 809,400 | 676,000 | 705,000 |
| Receivables turnover | 8.82 | 9.89 | 8.33 | 7.77 | 7.83 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $8,253,000K ÷ $935,400K
= 8.82
The receivables turnover ratio of ON Semiconductor Corp. has fluctuated over the past five years. The ratio was 7.83 in 2019, increased to 7.77 in 2020, further improved to 8.33 in 2021, peaked at 9.89 in 2022, and then slightly declined to 8.82 in 2023.
A higher receivables turnover ratio indicates that the company is collecting its accounts receivable more efficiently. ON Semiconductor Corp.'s upward trend in the receivables turnover ratio from 2019 through 2022 suggests an improvement in the company's ability to collect payments from customers promptly. However, the slight decrease in the ratio in 2023 may suggest a potential slowdown in the collection of accounts receivable.
Overall, ON Semiconductor Corp. has shown a generally positive trend in its receivables turnover performance, indicating effective management of its accounts receivable and potential for improved cash flow. Continued monitoring of this ratio will be important to assess the company's efficiency in collecting receivables in the future.
Peer comparison
Dec 31, 2023