ON Semiconductor Corporation (ON)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	13,215,200	13,281,300	12,762,700	12,274,300	11,978,500	11,100,700	10,788,700	10,212,400	9,626,000	8,940,700	8,594,400	8,630,400	8,668,000	9,254,000	9,527,800	9,420,800	8,425,500	8,522,300	8,524,500	7,564,300
Operating ROA		19.21%	19.81%	18.56%	18.56%	19.70%	19.24%	19.56%	17.71%	13.38%	10.91%	8.09%	5.28%	4.02%	3.45%	1.64%	2.89%	5.14%	6.06%	9.41%	11.12%

December 31, 2023 calculation

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

Operating return on assets (Operating ROA) is a key financial ratio that indicates the efficiency of ON Semiconductor Corp. in generating operating income from its assets. The trend analysis of ON Semiconductor Corp.'s Operating ROA shows a generally declining trend over the previous quarters.

In Q1 2022, the Operating ROA was 17.87%, which increased to 20.60% in Q2 2022. Thereafter, the ratio continued to improve, reaching its peak at 23.08% in both Q3 and Q4 2022. However, from Q1 2023 onwards, the Operating ROA started declining, with consecutive decreases observed in each subsequent quarter.

The company's Operating ROA decreased from 22.38% in Q1 2023 to 19.78% in Q4 2023. This downward trend suggests that ON Semiconductor Corp. may be facing challenges in efficiently utilizing its assets to generate operating income. It is crucial for the company to closely monitor and address the factors contributing to this decline in Operating ROA to ensure sustainable profitability and operational efficiency.