ON Semiconductor Corporation (ON)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total current assets	US$ in thousands	6,752,000	5,912,300	5,729,400	3,781,600	3,184,100
Total current liabilities	US$ in thousands	1,334,800	2,183,600	2,061,400	1,543,400	1,674,500
Current ratio		5.06	2.71	2.78	2.45	1.90

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $6,752,000K ÷ $1,334,800K
= 5.06

ON Semiconductor Corporation's current ratio has shown a positive trend over the years, increasing from 1.90 in December 31, 2020, to 5.06 in December 31, 2024. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

A current ratio above 1 indicates that the company has more current assets than current liabilities, suggesting a strong liquidity position. The increasing trend in the current ratio indicates an improving liquidity position, which could mean that ON Semiconductor has more than enough short-term assets to cover its short-term liabilities.

The current ratio of 5.06 as of December 31, 2024, indicates that ON Semiconductor has significantly strengthened its ability to meet its short-term obligations with its current assets. This strong current ratio may imply that the company has ample resources to fund its operations, pay off its debts, and take advantage of potential growth opportunities in the near term.

Overall, the upward trajectory of ON Semiconductor's current ratio suggests a positive financial health and indicates that the company's short-term liquidity position has been improving steadily over the years.