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.