ON Semiconductor Corporation (ON)

Current 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
Total current assets	US$ in thousands	5,912,300	6,085,400	5,930,200	5,716,300	5,729,400	5,309,400	4,785,300	4,367,400	3,781,600	3,641,800	3,229,900	3,187,600	3,184,100	3,812,600	4,144,400	4,032,300	3,020,000	3,073,000	3,064,200	3,046,700
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
Current ratio		2.71	2.44	2.39	2.22	2.78	3.01	2.79	2.79	2.45	2.52	2.22	1.84	1.90	2.11	2.35	2.32	1.66	1.54	2.42	2.31

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 shown some fluctuations over the past eight quarters, ranging from a low of 2.22 in Q1 2023 to a high of 3.01 in Q3 2022. Generally, a higher current ratio indicates a better ability to cover short-term obligations with current assets.

The current ratio has been relatively healthy overall, staying above 2 in all quarters, which suggests that the company has a strong ability to meet its short-term debt obligations with its current assets. However, the decreasing trend from Q3 2022 to Q1 2023, followed by a slight increase in the most recent quarter, Q4 2023, indicates some potential fluctuation in the company's liquidity position.

It is important to continue monitoring changes in the current ratio as it may reflect shifts in the company's asset management efficiency and financial health. Additionally, a thorough analysis of the components of current assets and current liabilities would provide further insights into the company's liquidity position and its ability to meet short-term financial obligations.