ON Semiconductor Corporation (ON)

Working capital 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
Total current assets	US$ in thousands	6,752,000	6,544,700	6,325,000	6,148,900	5,912,300	6,085,400	5,930,200	5,716,300	5,729,400	5,309,400	4,785,300	4,367,400	3,781,600	3,641,800	3,229,900	3,187,600	3,184,100	3,812,600	4,144,400	4,032,300
Total current liabilities	US$ in thousands	1,334,800	2,128,600	2,098,000	2,139,000	2,183,600	2,494,800	2,480,700	2,580,000	2,061,400	1,761,000	1,713,300	1,566,100	1,543,400	1,444,100	1,455,100	1,730,000	1,674,500	1,803,100	1,764,600	1,736,100
Working capital turnover		1.31	1.67	1.84	2.03	2.21	2.32	2.42	2.66	2.27	2.27	2.48	2.57	3.01	2.88	3.33	3.75	3.48	2.59	2.22	2.36

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $7,082,300K ÷ ($6,752,000K – $1,334,800K)
= 1.31

Working capital turnover is a financial ratio that measures how efficiently a company utilizes its working capital to generate sales revenue. A higher working capital turnover indicates that the company is effectively managing its working capital resources.

Based on the provided data for ON Semiconductor Corporation, the working capital turnover has shown some fluctuations over the analyzed periods. The ratio started at 2.36 as of March 31, 2020, and gradually increased, reaching a peak of 3.75 on March 31, 2021.

From the first quarter of 2021 onwards, there was some variability in the working capital turnover, with the ratio fluctuating between 2.27 and 3.48. However, it showed a general declining trend towards the end of the analyzed period, with the ratio decreasing to 1.31 as of December 31, 2024.

Overall, the working capital turnover ratio for ON Semiconductor Corporation indicates that the company has been relatively efficient in using its working capital to generate sales revenue, with periods of improved efficiency followed by slight decreases in efficiency towards the end of the analyzed period. It is important for the company to closely monitor its working capital management to ensure optimal use of resources and profitability.