ON Semiconductor Corporation (ON)

Total asset 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
Total assets	US$ in thousands	13,215,200	13,281,300	12,762,700	12,274,300	11,978,500	11,100,700	10,788,700	10,212,400	9,626,000	8,940,700	8,594,400	8,630,400	8,668,000	9,254,000	9,527,800	9,420,800	8,425,500	8,522,300	8,524,500	7,564,300
Total asset turnover		0.62	0.63	0.65	0.68	0.70	0.73	0.71	0.71	0.70	0.71	0.69	0.63	0.61	0.56	0.55	0.57	0.65	0.66	0.68	0.78

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $8,253,000K ÷ $13,215,200K
= 0.62

The total asset turnover of ON Semiconductor Corp. has shown a declining trend over the past few quarters, indicating that the company is generating less revenue for each dollar of assets it owns. The ratio has decreased from 0.70 in Q4 2022 to 0.62 in Q4 2023.

A total asset turnover below 1 suggests that the company is not efficiently utilizing its assets to generate sales. A lower total asset turnover could be attributed to factors such as operational inefficiencies, excess inventory levels, or a decline in sales relative to the size of the asset base.

Investors and stakeholders may be concerned about the declining total asset turnover as it indicates a potential inefficiency in asset utilization, which could impact the company's profitability and return on investment. ON Semiconductor Corp. may need to conduct a detailed analysis of its operations to identify areas for improvement in asset management and revenue generation.