Stock Analysis on Net

ON Semiconductor Corp. (NASDAQ:ON)

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

ON Semiconductor Corp., short-term (operating) activity ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Turnover Ratios
Inventory turnover 2.07 2.63 2.92 2.83 2.88
Receivables turnover 8.82 9.89 8.33 7.77 7.83
Payables turnover 6.02 4.99 6.34 6.18 6.52
Working capital turnover 2.21 2.27 3.01 3.48 4.59
Average No. Days
Average inventory processing period 176 139 125 129 127
Add: Average receivable collection period 41 37 44 47 47
Operating cycle 217 176 169 176 174
Less: Average payables payment period 61 73 58 59 56
Cash conversion cycle 156 103 111 117 118

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. ON Semiconductor Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. ON Semiconductor Corp. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. ON Semiconductor Corp. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. ON Semiconductor Corp. working capital turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. ON Semiconductor Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. ON Semiconductor Corp. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Operating cycle Equal to average inventory processing period plus average receivables collection period. ON Semiconductor Corp. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. ON Semiconductor Corp. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. ON Semiconductor Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

Inventory Turnover

ON Semiconductor Corp., inventory turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Cost of revenue 4,369,500 4,249,000 4,025,500 3,539,200 3,544,300
Inventories 2,111,800 1,616,800 1,379,500 1,251,400 1,232,400
Short-term Activity Ratio
Inventory turnover1 2.07 2.63 2.92 2.83 2.88
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 2.81 3.45 4.35 3.87 3.93
Analog Devices Inc. 2.70 3.20 2.33 3.14 3.24
Applied Materials Inc. 2.47 2.33 2.82 2.44 2.37
Broadcom Inc. 5.86 5.77 8.18 10.34 11.57
First Solar Inc. 2.46 4.10 3.29 3.58 5.67
Intel Corp. 2.92 2.74 3.27 4.06 3.41
KLA Corp. 1.47 1.67 1.76 1.87 1.48
Lam Research Corp. 2.00 2.36 2.91 2.86 3.44
Micron Technology Inc. 2.02 2.53 3.85 2.65 2.48
NVIDIA Corp. 2.25 3.62 3.44 4.24 2.89
Qualcomm Inc. 2.47 2.94 4.42 3.56 6.14
Texas Instruments Inc. 1.63 2.27 3.12 2.66 2.61
Inventory Turnover, Sector
Semiconductors & Semiconductor Equipment 2.45 2.82 3.48 3.44 3.36
Inventory Turnover, Industry
Information Technology 7.25 8.04 9.61 10.20 10.38

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Inventory turnover = Cost of revenue ÷ Inventories
= 4,369,500 ÷ 2,111,800 = 2.07

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. ON Semiconductor Corp. inventory turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Receivables Turnover

ON Semiconductor Corp., receivables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Receivables, net 935,400 842,300 809,400 676,000 705,000
Short-term Activity Ratio
Receivables turnover1 8.82 9.89 8.33 7.77 7.83
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 4.22 5.72 6.07 4.73 3.62
Analog Devices Inc. 8.37 6.67 5.02 7.60 9.43
Applied Materials Inc. 5.13 4.25 4.66 5.81 5.77
Broadcom Inc. 11.36 11.22 13.25 10.40 6.93
First Solar Inc. 5.02 8.08 6.81 10.19 6.45
Intel Corp. 15.94 15.26 8.36 11.48 9.40
KLA Corp. 5.99 5.08 5.30 5.24 4.61
Lam Research Corp. 6.17 3.99 4.83 4.79 6.63
Micron Technology Inc. 7.59 6.45 5.63 6.13 8.43
NVIDIA Corp. 7.05 5.79 6.86 6.59 8.23
Qualcomm Inc. 18.63 10.59 15.16 8.76 23.21
Texas Instruments Inc. 9.80 10.57 10.78 10.23 13.39
Receivables Turnover, Sector
Semiconductors & Semiconductor Equipment 8.36 7.57 7.49 8.09 8.44
Receivables Turnover, Industry
Information Technology 7.40 7.44 7.57 8.02 7.60

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Receivables turnover = Revenue ÷ Receivables, net
= 8,253,000 ÷ 935,400 = 8.82

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. ON Semiconductor Corp. receivables turnover ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Payables Turnover

ON Semiconductor Corp., payables turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Cost of revenue 4,369,500 4,249,000 4,025,500 3,539,200 3,544,300
Accounts payable 725,600 852,100 635,100 572,900 543,600
Short-term Activity Ratio
Payables turnover1 6.02 4.99 6.34 6.18 6.52
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 5.95 5.21 6.44 11.57 3.91
Analog Devices Inc. 8.98 7.70 6.30 8.42 8.78
Applied Materials Inc. 9.56 7.86 8.25 8.46 8.58
Broadcom Inc. 9.20 11.13 9.77 12.41 11.83
First Solar Inc. 9.74 7.47 11.34 11.08 11.53
Intel Corp. 3.79 3.77 6.13 6.14 7.23
KLA Corp. 11.37 8.10 8.10 9.27 9.24
Lam Research Corp. 20.50 9.25 9.43 9.18 14.06
Micron Technology Inc. 9.83 7.87 9.91 6.79 7.58
NVIDIA Corp. 9.74 5.29 5.23 6.04 8.89
Qualcomm Inc. 8.30 4.91 5.19 4.12 6.29
Texas Instruments Inc. 8.10 7.35 10.45 12.51 13.45
Payables Turnover, Sector
Semiconductors & Semiconductor Equipment 6.86 5.61 7.08 7.04 7.90
Payables Turnover, Industry
Information Technology 4.87 4.54 5.00 5.36 5.28

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Payables turnover = Cost of revenue ÷ Accounts payable
= 4,369,500 ÷ 725,600 = 6.02

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. ON Semiconductor Corp. payables turnover ratio decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Working Capital Turnover

ON Semiconductor Corp., working capital turnover calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current assets 5,912,300 5,729,400 3,781,600 3,184,100 3,020,000
Less: Current liabilities 2,183,600 2,061,400 1,543,400 1,674,500 1,818,400
Working capital 3,728,700 3,668,000 2,238,200 1,509,600 1,201,600
 
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Short-term Activity Ratio
Working capital turnover1 2.21 2.27 3.01 3.48 4.59
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 2.25 2.73 3.78 2.62 3.01
Analog Devices Inc. 10.40 4.81 2.81 4.86 12.57
Applied Materials Inc. 2.25 3.02 2.36 1.93 2.54
Broadcom Inc. 2.66 2.90 2.66 4.32 7.49
First Solar Inc. 1.00 0.95 1.19 1.25 1.34
Intel Corp. 3.56 3.45 2.61 3.46 8.06
KLA Corp. 2.27 2.14 1.93 1.92 1.79
Lam Research Corp. 1.93 2.23 1.80 1.31 1.56
Micron Technology Inc. 0.94 2.16 2.05 1.89 2.31
NVIDIA Corp. 1.63 1.10 1.37 0.92 1.27
Qualcomm Inc. 2.79 4.99 4.13 2.39 3.10
Texas Instruments Inc. 1.48 1.81 1.65 1.84 2.17
Working Capital Turnover, Sector
Semiconductors & Semiconductor Equipment 2.21 2.51 2.37 2.35 3.29
Working Capital Turnover, Industry
Information Technology 5.17 5.62 3.85 2.85 3.05

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Working capital turnover = Revenue ÷ Working capital
= 8,253,000 ÷ 3,728,700 = 2.21

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. ON Semiconductor Corp. working capital turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Inventory Processing Period

ON Semiconductor Corp., average inventory processing period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Inventory turnover 2.07 2.63 2.92 2.83 2.88
Short-term Activity Ratio (no. days)
Average inventory processing period1 176 139 125 129 127
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 130 106 84 94 93
Analog Devices Inc. 135 114 157 116 113
Applied Materials Inc. 148 157 129 150 154
Broadcom Inc. 62 63 45 35 32
First Solar Inc. 148 89 111 102 64
Intel Corp. 125 133 112 90 107
KLA Corp. 249 218 207 195 247
Lam Research Corp. 182 155 126 128 106
Micron Technology Inc. 181 144 95 138 147
NVIDIA Corp. 162 101 106 86 126
Qualcomm Inc. 148 124 83 102 59
Texas Instruments Inc. 225 161 117 137 140
Average Inventory Processing Period, Sector
Semiconductors & Semiconductor Equipment 149 129 105 106 109
Average Inventory Processing Period, Industry
Information Technology 50 45 38 36 35

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.07 = 176

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. ON Semiconductor Corp. number of days of inventory outstanding deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Receivable Collection Period

ON Semiconductor Corp., average receivable collection period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Receivables turnover 8.82 9.89 8.33 7.77 7.83
Short-term Activity Ratio (no. days)
Average receivable collection period1 41 37 44 47 47
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 87 64 60 77 101
Analog Devices Inc. 44 55 73 48 39
Applied Materials Inc. 71 86 78 63 63
Broadcom Inc. 32 33 28 35 53
First Solar Inc. 73 45 54 36 57
Intel Corp. 23 24 44 32 39
KLA Corp. 61 72 69 70 79
Lam Research Corp. 59 91 76 76 55
Micron Technology Inc. 48 57 65 59 43
NVIDIA Corp. 52 63 53 55 44
Qualcomm Inc. 20 34 24 42 16
Texas Instruments Inc. 37 35 34 36 27
Average Receivable Collection Period, Sector
Semiconductors & Semiconductor Equipment 44 48 49 45 43
Average Receivable Collection Period, Industry
Information Technology 49 49 48 45 48

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 8.82 = 41

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. ON Semiconductor Corp. number of days of receivables outstanding improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Operating Cycle

ON Semiconductor Corp., operating cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 176 139 125 129 127
Average receivable collection period 41 37 44 47 47
Short-term Activity Ratio
Operating cycle1 217 176 169 176 174
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 217 170 144 171 194
Analog Devices Inc. 179 169 230 164 152
Applied Materials Inc. 219 243 207 213 217
Broadcom Inc. 94 96 73 70 85
First Solar Inc. 221 134 165 138 121
Intel Corp. 148 157 156 122 146
KLA Corp. 310 290 276 265 326
Lam Research Corp. 241 246 202 204 161
Micron Technology Inc. 229 201 160 197 190
NVIDIA Corp. 214 164 159 141 170
Qualcomm Inc. 168 158 107 144 75
Texas Instruments Inc. 262 196 151 173 167
Operating Cycle, Sector
Semiconductors & Semiconductor Equipment 193 177 154 151 152
Operating Cycle, Industry
Information Technology 99 94 86 81 83

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 176 + 41 = 217

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. ON Semiconductor Corp. operating cycle deteriorated from 2021 to 2022 and from 2022 to 2023.

Average Payables Payment Period

ON Semiconductor Corp., average payables payment period calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Payables turnover 6.02 4.99 6.34 6.18 6.52
Short-term Activity Ratio (no. days)
Average payables payment period1 61 73 58 59 56
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 61 70 57 32 93
Analog Devices Inc. 41 47 58 43 42
Applied Materials Inc. 38 46 44 43 43
Broadcom Inc. 40 33 37 29 31
First Solar Inc. 37 49 32 33 32
Intel Corp. 96 97 60 59 51
KLA Corp. 32 45 45 39 40
Lam Research Corp. 18 39 39 40 26
Micron Technology Inc. 37 46 37 54 48
NVIDIA Corp. 37 69 70 60 41
Qualcomm Inc. 44 74 70 89 58
Texas Instruments Inc. 45 50 35 29 27
Average Payables Payment Period, Sector
Semiconductors & Semiconductor Equipment 53 65 52 52 46
Average Payables Payment Period, Industry
Information Technology 75 80 73 68 69

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.02 = 61

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. ON Semiconductor Corp. number of days of payables outstanding increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Cash Conversion Cycle

ON Semiconductor Corp., cash conversion cycle calculation, comparison to benchmarks

No. days

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data
Average inventory processing period 176 139 125 129 127
Average receivable collection period 41 37 44 47 47
Average payables payment period 61 73 58 59 56
Short-term Activity Ratio
Cash conversion cycle1 156 103 111 117 118
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 156 100 87 139 101
Analog Devices Inc. 138 122 172 121 110
Applied Materials Inc. 181 197 163 170 174
Broadcom Inc. 54 63 36 41 54
First Solar Inc. 184 85 133 105 89
Intel Corp. 52 60 96 63 95
KLA Corp. 278 245 231 226 286
Lam Research Corp. 223 207 163 164 135
Micron Technology Inc. 192 155 123 143 142
NVIDIA Corp. 177 95 89 81 129
Qualcomm Inc. 124 84 37 55 17
Texas Instruments Inc. 217 146 116 144 140
Cash Conversion Cycle, Sector
Semiconductors & Semiconductor Equipment 140 112 102 99 106
Cash Conversion Cycle, Industry
Information Technology 24 14 13 13 14

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

1 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 176 + 4161 = 156

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. ON Semiconductor Corp. cash conversion cycle improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.