ON Semiconductor Corporation (ON)
Working capital 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 |
Total current assets | US$ in thousands | 6,752,000 | 5,912,300 | 5,729,400 | 3,781,600 | 3,184,100 |
Total current liabilities | US$ in thousands | 1,334,800 | 2,183,600 | 2,061,400 | 1,543,400 | 1,674,500 |
Working capital turnover | 1.31 | 2.21 | 2.27 | 3.01 | 3.48 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,082,300K ÷ ($6,752,000K – $1,334,800K)
= 1.31
The working capital turnover of ON Semiconductor Corporation has shown a declining trend over the years, decreasing from 3.48 in December 31, 2020, to 1.31 in December 31, 2024. This indicates that the company is becoming less efficient in utilizing its working capital to generate revenue. A lower working capital turnover ratio suggests that the company may be experiencing difficulties in managing its current assets and liabilities effectively. It could also imply potential issues with inventory management, collections from customers, or payment to suppliers. ON Semiconductor Corporation may need to review its working capital management strategies to improve efficiency and optimize its resources for enhanced financial performance.
Peer comparison
Dec 31, 2024