ON Semiconductor Corporation (ON)

Fixed asset 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
Property, plant and equipment	US$ in thousands	4,361,400	4,383,700	4,372,500	4,384,300	4,401,500	4,314,500	3,991,400	3,692,900	3,450,700	2,762,100	2,709,800	2,559,400	2,524,300	2,427,800	2,457,800	2,489,400	2,512,300	2,511,800	2,566,500	2,579,900
Fixed asset turnover		1.62	1.68	1.78	1.86	1.88	1.93	2.09	2.26	2.41	2.92	2.81	2.81	2.67	2.61	2.41	2.19	2.09	2.07	2.06	2.10

December 31, 2024 calculation

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

The fixed asset turnover ratio for ON Semiconductor Corporation has shown a fluctuating trend over the past five years, starting at 2.10 in March 2020 and peaking at 2.92 in September 2022 before declining to 1.62 in December 2024. This ratio measures how efficiently the company is utilizing its fixed assets to generate sales revenue. Generally, a higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

From March 2020 to September 2022, ON Semiconductor showed a consistent improvement in its fixed asset turnover, indicating an increase in efficiency in generating sales from its fixed assets. However, the ratio started declining from December 2022 onwards, suggesting a potential decrease in the efficiency of utilizing fixed assets to generate revenue.

It is important for investors and stakeholders to closely monitor this ratio as a significant decrease over time may indicate inefficiencies in the company's operations or underutilization of fixed assets, which could impact profitability and overall financial performance. Further analysis of the factors contributing to these fluctuations in the fixed asset turnover ratio is necessary to make informed decisions about the company's financial health and operational efficiency.