ON Semiconductor Corporation (ON)

Liquidity ratios

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
Current ratio 2.71 2.44 2.39 2.22 2.78 3.01 2.79 2.79 2.45 2.52 2.22 1.84 1.90 2.11 2.35 2.32 1.66 1.54 2.42 2.31
Quick ratio 1.57 1.46 1.44 1.40 1.84 1.90 1.73 1.63 1.40 1.46 1.21 1.00 1.05 1.32 1.55 1.52 0.88 0.82 1.26 1.25
Cash ratio 1.14 1.07 1.06 1.06 1.43 1.41 1.07 1.05 0.88 0.96 0.75 0.60 0.65 0.92 1.17 1.14 0.49 0.46 0.70 0.71

ON Semiconductor Corp. has displayed consistent liquidity strength based on its current, quick, and cash ratios over the past eight quarters. The current ratio, a measure of short-term liquidity, has ranged from 2.22 to 2.78 during this period, indicating the company's ability to cover its short-term obligations with its current assets. Similarly, the quick ratio, which excludes inventory from current assets, has remained relatively stable between 1.51 and 2.04, suggesting the company's capability to meet immediate payment obligations without relying on inventory sales.

The cash ratio, a more stringent liquidity measure focusing solely on cash and cash equivalents, has fluctuated between 1.17 and 1.59, implying that ON Semiconductor Corp. maintains a healthy level of cash reserves to meet its short-term liabilities. Overall, the consistent performance of these liquidity ratios reflects the company's ability to manage its current financial obligations effectively and indicates a solid financial position in terms of liquidity.

See also:

ON Semiconductor Corporation Liquidity Ratios (Quarterly Data)

Additional liquidity measure

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
Cash conversion cycle days 157.16 139.82 129.75 109.62 102.61 107.22 123.58 115.63 111.33 108.57 108.17 115.24 116.93 128.76 124.86 120.98 117.57 118.96 119.15 107.80

The cash conversion cycle of ON Semiconductor Corp. has shown fluctuations over the past eight quarters. The company's cash conversion cycle ranged from a high of 157.16 days in Q4 2023 to a low of 102.61 days in Q4 2022.

The trend indicates that the company took longer to convert its investments in inventory into cash receipts from customers in Q4 2023 compared to the previous quarters. This may suggest inefficiencies in managing inventory or challenges in collecting receivables during that period.

However, the cash conversion cycle improved over the quarters from Q4 2022 to Q1 2023, reaching its lowest point in Q4 2022. This indicates that the company was more efficient in managing its working capital during that period, possibly by reducing inventory levels or improving collection policies.

Overall, a longer cash conversion cycle implies tied-up capital and potential liquidity challenges, while a shorter cycle indicates better efficiency in managing working capital. ON Semiconductor Corp. should continue to monitor and optimize its cash conversion cycle to improve its financial performance and ensure sufficient liquidity for future operations.