ON Semiconductor Corporation (ON)

Receivables turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	7,082,300	7,377,900	7,796,800	8,156,000	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
Receivables	US$ in thousands	1,160,100	1,070,600	887,200	873,300	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
Receivables turnover		6.10	6.89	8.79	9.34	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

December 31, 2024 calculation

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

The receivables turnover ratio for ON Semiconductor Corporation has fluctuated over the past few years based on the provided data. The receivables turnover ratio measures how efficiently a company is able to collect its accounts receivable during a specific period.

The trend in the receivables turnover ratio indicates that ON Semiconductor's ability to collect its receivables has varied. For instance, the ratio declined from 8.30 (March 31, 2020) to 6.69 (June 30, 2022), suggesting a potential slowdown in collections efficiency during that period. However, there have been periods of improvement as well, with the ratio reaching highs of 9.89 (December 31, 2022) and 9.47 (March 31, 2023).

Overall, the company seems to have made efforts to enhance its accounts receivable management, as evidenced by the generally increasing trend in the receivables turnover ratio from its recent low point. A higher ratio indicates that ON Semiconductor is collecting its receivables more quickly, which can be a positive sign of strong cash flow management and effective credit policies. However, the company should continue to monitor and analyze this ratio to ensure that it remains at optimal levels for sustainable financial health.