ON Semiconductor Corporation (ON)
Quick ratio
Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
---|---|---|---|---|---|---|
Cash | US$ in thousands | 2,691,300 | 2,483,000 | 2,919,000 | 1,352,600 | 1,080,700 |
Short-term investments | US$ in thousands | 300,000 | 0 | 22,000 | — | — |
Receivables | US$ in thousands | 1,160,100 | 935,400 | 842,300 | 809,400 | 676,000 |
Total current liabilities | US$ in thousands | 1,334,800 | 2,183,600 | 2,061,400 | 1,543,400 | 1,674,500 |
Quick ratio | 3.11 | 1.57 | 1.84 | 1.40 | 1.05 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($2,691,300K
+ $300,000K
+ $1,160,100K)
÷ $1,334,800K
= 3.11
The quick ratio of ON Semiconductor Corporation has shown a steadily increasing trend over the years, starting at 1.05 in December 31, 2020, and reaching 3.11 in December 31, 2024. This indicates the company's ability to meet its short-term obligations using its most liquid assets, such as cash and equivalents, accounts receivable, and marketable securities.
An increasing quick ratio is generally a positive sign as it suggests improved liquidity and financial health. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities. ON Semiconductor's quick ratio has exceeded this benchmark, which indicates a strong ability to meet its short-term financial obligations without relying heavily on inventory or other less liquid assets.
Overall, the increasing trend in ON Semiconductor's quick ratio over the years reflects a strengthening liquidity position, which is essential for weathering unexpected financial challenges and capitalizing on growth opportunities while maintaining financial stability.
Peer comparison
Dec 31, 2024