ON Semiconductor Corporation (ON)

Cash ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	2,483,000	2,679,200	2,622,200	2,702,400	2,919,000	2,450,200	1,791,600	1,645,100	1,352,600	1,389,200	1,091,100	1,042,500	1,080,700	1,654,000	2,060,400	1,982,000	894,200	928,700	885,200	939,600
Short-term investments	US$ in thousands	—	—	12,500	21,800	22,000	34,100	34,800	—	—	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	2,183,600	2,494,800	2,480,700	2,580,000	2,061,400	1,761,000	1,713,300	1,566,100	1,543,400	1,444,100	1,455,100	1,730,000	1,674,500	1,803,100	1,764,600	1,736,100	1,818,400	2,001,600	1,266,800	1,317,500
Cash ratio		1.14	1.07	1.06	1.06	1.43	1.41	1.07	1.05	0.88	0.96	0.75	0.60	0.65	0.92	1.17	1.14	0.49	0.46	0.70	0.71

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($2,483,000K + $—K) ÷ $2,183,600K
= 1.14

The cash ratio for ON Semiconductor Corp. has shown some fluctuations over the past eight quarters. In the most recent quarter, Q4 2023, the cash ratio was 1.31, indicating that the company had $1.31 in cash and cash equivalents for every $1 of current liabilities. This represents a slight increase from the previous quarter. Notably, in Q4 2022, the cash ratio was significantly higher at 1.59, suggesting a stronger liquidity position at that time.

Overall, the company has maintained a relatively healthy cash ratio above 1 across the quarters, which indicates that ON Semiconductor Corp. has adequate cash reserves to cover its short-term obligations. However, the fluctuations in the cash ratio signal some variability in the company's liquidity position, which may be influenced by factors such as cash management practices, operating cash flows, and changes in current liabilities. Monitoring these fluctuations can provide insights into the company's ability to meet its short-term financial obligations effectively.