ON Semiconductor Corporation (ON)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	2,691,300	2,483,000	2,919,000	1,352,600	1,080,700
Short-term investments	US$ in thousands	300,000	0	22,000	—	—
Total current liabilities	US$ in thousands	1,334,800	2,183,600	2,061,400	1,543,400	1,674,500
Cash ratio		2.24	1.14	1.43	0.88	0.65

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,691,300K + $300,000K) ÷ $1,334,800K
= 2.24

The cash ratio of ON Semiconductor Corporation has shown a positive trend over the years, increasing from 0.65 in December 31, 2020, to 2.24 in December 31, 2024. This indicates a significant improvement in the company's ability to cover its short-term liabilities with its cash and cash equivalents. The ratio surpassed 1 in December 31, 2022, suggesting that the company had more than enough cash to cover its current liabilities at that point in time. While there was a slight decrease in the ratio in December 31, 2023, it remained above 1, reflecting a healthy liquidity position overall. Overall, the increasing cash ratio indicates that ON Semiconductor Corporation has been effectively managing its cash resources and is in a strong position to meet its short-term obligations.