ON Semiconductor Corporation (ON)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 14,089,800 | 13,215,200 | 11,978,500 | 9,626,000 | 8,668,000 |
| Operating ROA | 12.55% | 19.21% | 19.70% | 13.38% | 4.02% |
December 31, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $1,767,700K ÷ $14,089,800K
= 12.55%
The operating return on assets (operating ROA) for ON Semiconductor Corporation has shown a positive trend over the years. In 2020, the operating ROA stood at 4.02%, indicating the company generated $0.0402 in operating income for every dollar of assets.
By December 31, 2021, the operating ROA had significantly improved to 13.38%, showcasing a notable increase in operational efficiency and asset utilization. This suggests that the company was able to generate $0.1338 in operating income for each dollar of assets invested.
The positive momentum continued into 2022, with the operating ROA reaching 19.70%, signaling a further enhancement in the company's ability to generate profits from its asset base. It means that the company created $0.197 of operating income for every dollar of assets held.
Although there was a slight dip in the operating ROA in 2023 to 19.21%, the figure remained relatively high, indicating sustained operational performance and asset productivity. This suggests that the company continued to efficiently utilize its assets to generate operating income.
In 2024, the operating ROA decreased to 12.55%, reflecting a slight decline in operational efficiency and asset utilization compared to the previous year. Despite the decrease, the company still managed to generate $0.1255 in operating income for each dollar of assets.
Overall, the trend in ON Semiconductor Corporation's operating ROA indicates an improvement in the company's efficiency in utilizing its assets to generate operating income, with variations in performance from year to year.
Peer comparison
Dec 31, 2024