ON Semiconductor Corporation (ON)

Receivables turnover

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	8,253,000	8,338,500	8,350,300	8,340,900	8,326,200	8,068,700	7,618,200	7,203,100	6,739,800	6,340,000	5,915,200	5,458,800	5,255,000	5,210,500	5,275,000	5,409,200	5,517,900	5,619,200	5,779,100	5,887,300
Receivables	US$ in thousands	935,400	958,200	944,400	880,900	842,300	857,300	1,138,100	910,700	809,400	720,000	669,100	683,600	676,000	728,100	667,400	652,000	705,000	716,600	713,200	704,000
Receivables turnover		8.82	8.70	8.84	9.47	9.89	9.41	6.69	7.91	8.33	8.81	8.84	7.99	7.77	7.16	7.90	8.30	7.83	7.84	8.10	8.36

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $8,253,000K ÷ $935,400K
= 8.82

ON Semiconductor Corp.'s receivables turnover has shown some fluctuations over the past eight quarters. The ratio ranged from a low of 6.69 in Q2 2022 to a high of 9.89 in Q4 2022. The trend for the most recent quarters indicates a slight decrease in receivables turnover, with values ranging from 8.70 to 8.84 in Q3 and Q2 2023, respectively, compared to 9.47 in Q1 2023 and 8.82 in Q4 2023.

A higher receivables turnover ratio generally indicates that the company is efficient in collecting outstanding receivables from customers. ON Semiconductor Corp. has generally maintained a healthy receivables turnover ratio above 8 in recent quarters, which suggests the company's effective management of credit sales and collections. However, the slight decrease in the turnover ratio in the most recent quarters may warrant further investigation, as it could indicate a lengthening collection period or potential issues with credit policies or customer payments. Monitoring receivables turnover can provide valuable insights into the company's liquidity and operational efficiency.