ON Semiconductor Corporation (ON)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	7,082,300	8,253,000	8,326,200	6,739,800	5,255,000
Receivables	US$ in thousands	1,160,100	935,400	842,300	809,400	676,000
Receivables turnover		6.10	8.82	9.89	8.33	7.77

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $7,082,300K ÷ $1,160,100K
= 6.10

The analysis of ON Semiconductor Corporation's receivables turnover reveals a positive trend over the past five years. The company's receivables turnover ratio has shown an increase from 7.77 in December 31, 2020, to 8.33 in December 31, 2021, reaching its peak at 9.89 in December 31, 2022. Subsequently, there was a slight decline to 8.82 in December 31, 2023, followed by a significant drop to 6.10 in December 31, 2024.

The higher the receivables turnover ratio, the more efficiently the company is collecting its accounts receivable. The peak in 2022 indicates that ON Semiconductor was able to convert its receivables into cash at a faster rate during that year. However, the subsequent decline in 2023 and the significant drop in 2024 may suggest a slowdown in the collection of accounts receivable.

It is essential for the company to closely monitor and manage its receivables turnover to ensure timely collection of outstanding payments and maintain healthy cash flow. Further analysis of the factors influencing these fluctuations in the receivables turnover ratio would provide valuable insights into the company's operational efficiency and overall financial health.