ON Semiconductor Corporation (ON)

Current ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total current assets	US$ in thousands	6,752,000	6,544,700	6,325,000	6,148,900	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
Total current liabilities	US$ in thousands	1,334,800	2,128,600	2,098,000	2,139,000	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
Current ratio		5.06	3.07	3.01	2.87	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

December 31, 2024 calculation

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

The current ratio of ON Semiconductor Corporation has shown a fluctuating trend over the past few years. Starting at 2.32 in March 31, 2020, the ratio increased to 2.35 by June 30, 2020, indicating a slightly stronger liquidity position. However, the ratio decreased to 1.90 by December 31, 2020, which may raise concerns about the company's ability to meet its short-term obligations.

Subsequently, there was a gradual improvement in the current ratio, reaching 2.79 by June 30, 2022, and staying relatively stable around that level until December 31, 2022. The ratio then experienced some fluctuation, dropping to 2.22 by March 31, 2023, before increasing to 3.01 by September 30, 2024, and further rising to 5.06 by December 31, 2024.

The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A ratio above 1 indicates that the company has more current assets than current liabilities, which is generally considered a positive sign of liquidity. ON Semiconductor's current ratio has generally remained above 1 over the period, which suggests that the company has had sufficient short-term liquidity to meet its financial obligations.

Overall, the current ratio of ON Semiconductor has shown variability but has generally trended positively in recent periods, indicating an improvement in the company's short-term liquidity position. However, it is important to continue monitoring the ratio to ensure the company maintains a healthy liquidity level to support its operations and financial obligations.