ON Semiconductor Corporation (ON)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	1,767,700	2,538,700	2,360,000	1,287,600	348,700
Revenue	US$ in thousands	7,082,300	8,253,000	8,326,200	6,739,800	5,255,000
Operating profit margin		24.96%	30.76%	28.34%	19.10%	6.64%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $1,767,700K ÷ $7,082,300K
= 24.96%

Operating profit margin, a key profitability metric, reflects the efficiency of ON Semiconductor Corporation in generating profit from its core operations. Analyzing the data provided, the company's operating profit margin has exhibited a positive trend over the past few years.

As of December 31, 2020, the operating profit margin was reported at 6.64%, indicating that ON Semiconductor was able to convert about 6.64% of its total revenues into operating profit. Over the next four years, the operating profit margin showed significant improvement, reaching 19.10% by December 31, 2021, 28.34% by December 31, 2022, 30.76% by December 31, 2023, and then slightly decreasing to 24.96% by December 31, 2024.

The increasing trend in the operating profit margin is a positive sign, suggesting that the company has been able to effectively control its operating expenses relative to its revenue growth. However, the slight decrease in 2024 from the previous year may warrant further investigation to understand the underlying factors contributing to this change.

Overall, the progressive improvement in ON Semiconductor's operating profit margin indicates enhanced operational efficiency and potential profitability in the recent years, though monitoring future trends will be essential for assessing the sustainability of this performance.