ON Semiconductor Corporation (ON)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 45.41% | 47.06% | 48.97% | 40.27% | 32.65% |
| Operating profit margin | 24.96% | 30.76% | 28.34% | 19.10% | 6.64% |
| Pretax margin | 25.92% | 30.70% | 28.35% | 17.15% | 3.32% |
| Net profit margin | 22.21% | 26.46% | 22.85% | 14.98% | 4.46% |
ON Semiconductor Corporation has shown an improving trend in its profitability ratios over the past five years. The gross profit margin has risen consistently from 32.65% in December 2020 to 45.41% in December 2024. This indicates that the company has been able to increase its efficiency in generating gross profit from its revenue.
Similarly, the operating profit margin has shown significant growth, increasing from 6.64% in December 2020 to 24.96% in December 2024. This suggests that ON Semiconductor has been able to control its operating expenses effectively and improve operational efficiency.
The pretax margin has also exhibited a positive trend, increasing from 3.32% in December 2020 to 25.92% in December 2024. This indicates that the company has been able to enhance its profitability before accounting for taxes.
However, the net profit margin, while showing improvement, has fluctuated slightly over the period. It increased from 4.46% in December 2020 to 26.46% in December 2023 before dropping to 22.21% in December 2024. This could be attributed to fluctuations in non-operating expenses or one-time charges affecting the bottom line.
Overall, ON Semiconductor Corporation's profitability ratios demonstrate a positive trend, highlighting its ability to efficiently manage its costs and generate profits over the years.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.55% | 19.21% | 19.70% | 13.38% | 4.02% |
| Return on assets (ROA) | 11.16% | 16.52% | 15.88% | 10.49% | 2.70% |
| Return on total capital | 14.56% | 25.27% | 26.59% | 17.16% | 5.28% |
| Return on equity (ROE) | 17.88% | 28.06% | 30.74% | 22.02% | 6.62% |
ON Semiconductor Corporation has shown a positive trend in profitability ratios over the years. The Operating return on assets (Operating ROA) has increased from 4.02% in 2020 to 19.21% in 2023, with a slight dip to 12.55% in 2024. This indicates the company's ability to generate operating income in relation to its total assets has improved significantly.
Similarly, the Return on assets (ROA) has also shown consistent growth, rising from 2.70% in 2020 to 16.52% in 2023, before settling at 11.16% in 2024. This metric reflects the firm's overall profitability in generating earnings from its assets.
Moreover, the Return on total capital has surged from 5.28% in 2020 to 26.59% in 2022, showing a remarkable increase in the company's ability to generate returns on its total capital employed. However, there was a slight decline to 14.56% in 2024, indicating potential challenges in efficiently utilizing total capital for generating profits.
Lastly, the Return on equity (ROE) has displayed a significant upswing from 6.62% in 2020 to 30.74% in 2022, signaling a substantial improvement in the company's ability to generate profits from shareholders' equity. The ROE settled at 17.88% in 2024, still depicting a strong performance in generating returns for equity investors.
Overall, ON Semiconductor Corporation's profitability ratios have generally improved over the years, suggesting efficiency in asset utilization, capital allocation, and equity returns, although a slight decline in some ratios in the most recent year signals a potential need for continued monitoring and management attention.