ON Semiconductor Corporation (ON)

Fixed asset 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
Property, plant and equipment	US$ in thousands	4,361,400	4,401,500	3,450,700	2,524,300	2,512,300
Fixed asset turnover		1.62	1.88	2.41	2.67	2.09

December 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,082,300K ÷ $4,361,400K
= 1.62

ON Semiconductor Corporation's fixed asset turnover ratio has shown fluctuations over the past five years.

In December 31, 2020, the fixed asset turnover ratio was 2.09, indicating that the company generated $2.09 in revenue for every dollar invested in fixed assets. This ratio improved in December 31, 2021, reaching 2.67, suggesting increased efficiency in utilizing fixed assets to generate revenue.

However, in December 31, 2022, the fixed asset turnover ratio slightly decreased to 2.41, but remained at a relatively high level. The ratio then dropped significantly to 1.88 in December 31, 2023, indicating a decline in revenue generated per dollar invested in fixed assets.

Moreover, in December 31, 2024, the fixed asset turnover ratio fell further to 1.62, signaling a continued decrease in efficiency in utilizing fixed assets to generate revenue.

Overall, the trend in ON Semiconductor Corporation's fixed asset turnover ratio shows variability, with periods of improvement and decline. Further analysis of the company's operational performance and asset management practices may be necessary to understand the reasons behind these fluctuations and to identify potential areas for improvement.