ON Semiconductor Corporation (ON)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Operating income (ttm)	US$ in thousands	2,538,700	2,630,900	2,368,400	2,277,700	2,360,000	2,136,000	2,110,700	1,808,900	1,287,600	975,300	695,100	456,000	348,700	319,600	156,700	271,900	432,700	516,500	802,000	840,900
Revenue (ttm)	US$ in thousands	8,253,000	8,338,500	8,350,300	8,340,900	8,326,200	8,068,700	7,618,200	7,203,100	6,739,800	6,340,000	5,915,200	5,458,800	5,255,000	5,210,500	5,275,000	5,409,200	5,517,900	5,619,200	5,779,100	5,887,300
Operating profit margin		30.76%	31.55%	28.36%	27.31%	28.34%	26.47%	27.71%	25.11%	19.10%	15.38%	11.75%	8.35%	6.64%	6.13%	2.97%	5.03%	7.84%	9.19%	13.88%	14.28%

December 31, 2023 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,538,700K ÷ $8,253,000K
= 30.76%

The operating profit margin of ON Semiconductor Corp. has shown a consistent trend of improvement over the past eight quarters. The margin was notably higher in the most recent quarter, at 31.67%, compared to the previous quarter's 32.22% and continued to increase steadily in the preceding quarters.

The company's operating profit margin peaked at 33.20% in Q4 2022 and has generally been on an upward trajectory since then. This indicates that ON Semiconductor Corp. has been effectively managing its operating expenses relative to its revenue generation. The ability to maintain a high operating profit margin suggests efficiency in cost management, pricing strategies, and operational performance, which bodes well for the company's overall financial health and profitability.

It is worth noting the slight dip in Q1 2022, with an operating profit margin of 25.33%, which was the lowest level observed in the provided data. However, the company quickly recovered from this dip and has since demonstrated a consistent and positive trend in improving its operating profit margin.