ON Semiconductor Corporation (ON)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Total current assets | US$ in thousands | 5,912,300 | 5,729,400 | 3,781,600 | 3,184,100 | 3,020,000 |
| Total current liabilities | US$ in thousands | 2,183,600 | 2,061,400 | 1,543,400 | 1,674,500 | 1,818,400 |
| Current ratio | 2.71 | 2.78 | 2.45 | 1.90 | 1.66 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $5,912,300K ÷ $2,183,600K
= 2.71
The current ratio of ON Semiconductor Corp. has demonstrated a generally increasing trend over the past five years, indicating improved short-term liquidity and ability to meet its current obligations. As of December 31, 2023, the company's current ratio stands at 2.71, slightly lower than the prior year but still at a healthy level.
A current ratio above 1 suggests that ON Semiconductor Corp. has more current assets than current liabilities, highlighting its ability to cover short-term debts and operational expenses. The current ratio peaked in 2022 at 2.78, reflecting strong liquidity position, and has generally remained above 2 since then.
This trend suggests that the company has been managing its current assets and liabilities effectively, ensuring that it has sufficient resources to meet its short-term financial commitments. However, it is important for ON Semiconductor Corp. to continue monitoring its current ratio to ensure it remains at a level that supports its operations and growth objectives.
Peer comparison
Dec 31, 2023