ON Semiconductor Corporation (ON)
Gross profit margin
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Gross profit | US$ in thousands | 3,883,500 | 4,077,200 | 2,714,300 | 1,715,800 | 1,973,600 |
| Revenue | US$ in thousands | 8,253,000 | 8,326,200 | 6,739,800 | 5,255,000 | 5,517,900 |
| Gross profit margin | 47.06% | 48.97% | 40.27% | 32.65% | 35.77% |
December 31, 2023 calculation
Gross profit margin = Gross profit ÷ Revenue
= $3,883,500K ÷ $8,253,000K
= 47.06%
Analyzing ON Semiconductor Corp.'s gross profit margin over the past five years shows a fluctuating trend. The gross profit margin increased from 35.77% in 2019 to 48.97% in 2022, reflecting efficient cost management and pricing strategies. However, there was a decline to 47.06% in 2023. This decrease may indicate challenges in maintaining profitability or changes in the cost structure. Overall, the company has demonstrated a generally healthy gross profit margin, which is crucial for covering operating expenses and generating profits. Monitoring this metric over time can provide insights into the company's operational efficiency and competitiveness in the industry.
Peer comparison
Dec 31, 2023