ON Semiconductor Corporation (ON)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	8,253,000	8,326,200	6,739,800	5,255,000	5,517,900
Total current assets	US$ in thousands	5,912,300	5,729,400	3,781,600	3,184,100	3,020,000
Total current liabilities	US$ in thousands	2,183,600	2,061,400	1,543,400	1,674,500	1,818,400
Working capital turnover		2.21	2.27	3.01	3.48	4.59

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $8,253,000K ÷ ($5,912,300K – $2,183,600K)
= 2.21

The working capital turnover ratio for ON Semiconductor Corp. has been fluctuating over the past five years, indicating varying efficiency in utilizing its working capital to generate revenue. The ratio decreased from 4.59 in 2019 to 2.21 in 2023, suggesting a decline in the company's ability to generate sales from its working capital investments.

This decreasing trend in the working capital turnover ratio may indicate inefficiencies in managing working capital or a slowdown in revenue generation relative to the level of working capital invested. Further analysis is needed to understand the specific factors driving these fluctuations and to assess the effectiveness of ON Semiconductor Corp.'s working capital management strategies.