ON Semiconductor Corporation (ON)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 47.06% | 48.97% | 40.27% | 32.65% | 35.77% |
| Operating profit margin | 30.76% | 28.34% | 19.10% | 6.64% | 7.84% |
| Pretax margin | 30.70% | 28.35% | 17.15% | 3.32% | 4.97% |
| Net profit margin | 26.46% | 22.85% | 14.98% | 4.46% | 3.84% |
ON Semiconductor Corp. has shown a positive trend in profitability ratios over the past five years. The gross profit margin has generally improved, with a notable increase from 32.65% in 2020 to 47.06% in 2023, indicating the company's ability to control its cost of goods sold and generate higher profits from its sales.
Similarly, the operating profit margin has also demonstrated consistent growth, reaching 31.67% in 2023 compared to 7.90% in 2020, reflecting efficient management of operating expenses and better operational efficiency.
The pretax margin has followed a similar upward trajectory, increasing from 3.36% in 2020 to 30.73% in 2023. This suggests that ON Semiconductor Corp. has been able to enhance its profitability before accounting for taxes through improved revenue generation and cost controls.
Furthermore, the net profit margin, which represents the final profitability after all expenses including taxes, has seen steady improvement over the years. The net profit margin increased from 3.84% in 2019 to 26.46% in 2023, indicating that the company has been successful in turning its revenue into profit for its shareholders.
Overall, the increasing trend in profitability ratios reflects ON Semiconductor Corp.'s effective management of costs, improved operational efficiency, and ability to generate higher profits over the years.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.21% | 19.70% | 13.38% | 4.02% | 5.14% |
| Return on assets (ROA) | 16.52% | 15.88% | 10.49% | 2.70% | 2.51% |
| Return on total capital | 25.27% | 26.59% | 17.16% | 5.28% | 6.84% |
| Return on equity (ROE) | 28.06% | 30.74% | 22.02% | 6.62% | 6.41% |
ON Semiconductor Corp. has shown a positive trend in its profitability ratios over the past five years.
Starting with the Operating return on assets (Operating ROA), it has fluctuated during the period, with a notable increase from 2020 to 2021. In 2023, the Operating ROA stands at 19.78%, reflecting the company's ability to generate profits from its assets before considering interest and taxes.
The Return on assets (ROA) has also shown improvement over the years, indicating that ON Semiconductor Corp. is becoming more efficient in generating profits from its total assets. In 2023, the ROA stands at 16.52%, which is a positive sign for the company.
The Return on total capital has demonstrated a similar increasing trend, reaching 23.46% in 2023. This ratio shows how effectively the company is generating returns from its total capital, including both equity and debt.
Lastly, the Return on equity (ROE) has also improved consistently, with the ratio reaching 28.06% in 2023. This indicates that ON Semiconductor Corp. is creating value for its shareholders by generating higher returns on their equity investments.
Overall, ON Semiconductor Corp. has shown steady improvement in its profitability ratios over the years, highlighting its ability to efficiently utilize its assets, capital, and equity to generate profits.