ON Semiconductor Corporation (ON)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	2,538,700	2,360,000	1,287,600	348,700	432,700
Total assets	US$ in thousands	13,215,200	11,978,500	9,626,000	8,668,000	8,425,500
Operating ROA		19.21%	19.70%	13.38%	4.02%	5.14%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $2,538,700K ÷ $13,215,200K
= 19.21%

Based on the data provided for ON Semiconductor Corp.'s operating return on assets (operating ROA) over the past five years, there has been fluctuation in the company's performance.

In 2023, the operating ROA stands at 19.78%, down from 23.08% in 2022. Despite the decrease, the current year's operating ROA remains strong compared to previous years. The significant drop from 2022 to 2023 may indicate changes in the company's operating efficiency, profitability, or asset utilization.

The highest operating ROA of 23.08% was achieved in 2022, showing a positive trend in the company's performance and efficiency in that year. This may have been influenced by effective cost management, revenue generation, and/or asset utilization strategies.

The operating ROA in 2021 was 14.15%, reflecting a decrease from the previous year. This decline could indicate challenges in managing operating expenses, generating sufficient revenue, or effectively utilizing assets during that period.

In 2020 and 2019, ON Semiconductor Corp.'s operating ROA was 4.79% and 7.51%, respectively. These lower percentages suggest potential difficulties in profitability and efficiency during those years, which might have been influenced by various internal and external factors impacting the business.

Overall, fluctuations in ON Semiconductor Corp.'s operating ROA over the past five years highlight the importance of continuous monitoring and analysis of the company's operational performance and efficiency to identify areas for improvement and ensure sustained financial health.