ON Semiconductor Corporation (ON)

Quick 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
Cash	US$ in thousands	2,691,300	2,470,200	2,231,000	2,614,400	2,483,000	2,679,200	2,622,200	2,702,400	2,919,000	2,450,200	1,791,600	1,645,100	1,352,600	1,389,200	1,091,100	1,042,500	1,080,700	1,654,000	2,060,400	1,982,000
Short-term investments	US$ in thousands	300,000	300,000	450,000	—	0	—	12,500	21,800	22,000	34,100	34,800	32,800	—	20,000	—	—	—	—	—	—
Receivables	US$ in thousands	1,160,100	1,070,600	887,200	873,300	935,400	958,200	944,400	880,900	842,300	857,300	1,138,100	910,700	809,400	720,000	669,100	683,600	676,000	728,100	667,400	652,000
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
Quick ratio		3.11	1.80	1.70	1.63	1.57	1.46	1.44	1.40	1.84	1.90	1.73	1.65	1.40	1.47	1.21	1.00	1.05	1.32	1.55	1.52

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 fluctuations over the past several quarters. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio above 1 indicates that the company has an adequate level of liquid assets to cover its current liabilities.

From March 31, 2020, to June 30, 2021, the quick ratio improved steadily from 1.52 to 1.21, indicating an increase in the company's liquidity position. However, by March 31, 2022, the quick ratio had significantly improved to 1.65, showing a strong ability to cover its short-term liabilities.

Subsequently, the quick ratio continued to rise, reaching a peak of 3.11 on December 31, 2024. This sharp increase suggests that the company had a surplus of highly liquid assets relative to its current liabilities by the end of 2024.

Overall, ON Semiconductor Corporation has demonstrated a generally healthy liquidity position over the analyzed period, with the quick ratio consistently above 1, indicating a favorable ability to meet its short-term obligations with its current liquid assets.