ON Semiconductor Corporation (ON)
Total 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 |
| Total assets | US$ in thousands | 13,215,200 | 11,978,500 | 9,626,000 | 8,668,000 | 8,425,500 |
| Total asset turnover | 0.62 | 0.70 | 0.70 | 0.61 | 0.65 |
December 31, 2023 calculation
Total asset turnover = Revenue ÷ Total assets
= $8,253,000K ÷ $13,215,200K
= 0.62
The total asset turnover ratio for ON Semiconductor Corp. has fluctuated over the past five years, ranging from 0.61 to 0.70. This ratio indicates how efficiently the company is generating revenue from its assets. A higher total asset turnover ratio is generally preferred as it suggests that the company is effectively utilizing its assets to generate sales.
In 2023, the total asset turnover ratio decreased to 0.62 from 0.70 in 2022. This decline indicates a decrease in the company's efficiency in generating sales from its total assets. It could be a sign of underutilization of assets or a drop in revenue relative to the total asset base.
Comparing to the previous years, the total asset turnover ratio in 2023 is lower than the ratios in both 2021 and 2022, indicating a decline in asset efficiency. However, it is higher than the ratios in 2020 and 2019, suggesting improved asset utilization compared to those years.
In conclusion, the total asset turnover ratio for ON Semiconductor Corp. in 2023 shows a decrease in efficiency compared to the previous year, but remains within the range observed over the past five years. Further analysis of the company's operations and financial performance may be necessary to understand the factors driving these fluctuations in asset turnover.
Peer comparison
Dec 31, 2023