ON Semiconductor Corporation (ON)
Fixed asset 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 |
| Property, plant and equipment | US$ in thousands | 4,401,500 | 3,450,700 | 2,524,300 | 2,512,300 | 2,591,600 |
| Fixed asset turnover | 1.88 | 2.41 | 2.67 | 2.09 | 2.13 |
December 31, 2023 calculation
Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $8,253,000K ÷ $4,401,500K
= 1.88
ON Semiconductor Corp.'s fixed asset turnover has shown some fluctuations over the past five years. The ratio indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher fixed asset turnover ratio is generally favorable as it suggests that the company is generating more revenue per dollar of fixed assets.
In 2023, the fixed asset turnover ratio decreased to 1.88 from 2.41 in 2022. This decline may indicate a potential decrease in the company's ability to efficiently utilize its fixed assets to generate revenue compared to the previous year.
However, when compared to 2021 and 2019, the 2023 ratio is still relatively lower, suggesting that ON Semiconductor Corp. may have experienced challenges in optimizing its fixed assets during the year.
It is important for the company to analyze the reasons behind this decrease in fixed asset turnover and take necessary measures to improve the efficiency of its fixed asset utilization in order to enhance overall operational performance and profitability.
Peer comparison
Dec 31, 2023