ON Semiconductor Corporation (ON)
Operating return on assets (Operating ROA)
| Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating income (ttm) | US$ in thousands | 1,767,700 | 1,971,200 | 2,212,800 | 2,499,000 | 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 |
| Total assets | US$ in thousands | 14,089,800 | 13,923,600 | 13,658,800 | 13,482,900 | 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 |
| Operating ROA | 12.55% | 14.16% | 16.20% | 18.53% | 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% |
December 31, 2024 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $1,767,700K ÷ $14,089,800K
= 12.55%
Operating Return on Assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its operating activities relative to its total assets. It is calculated by dividing operating income by average total assets.
Analyzing the trend of ON Semiconductor Corporation's Operating ROA from March 2020 to December 2024 reveals fluctuations in the company's operational efficiency and asset utilization. The company's Operating ROA has shown an increasing trend over the period, starting at 2.89% in March 2020 and peaking at 19.81% in September 2023 before slightly declining to 12.55% by December 2024.
The initial low Operating ROA in March 2020 may indicate challenges in generating profits from operating activities relative to its asset base. However, the consistent increase in the ratio up to September 2023 reflects improvements in the company's operational performance and efficiency in utilizing its assets to generate earnings.
The subsequent decline in Operating ROA from September 2023 to December 2024 suggests a potential decrease in profitability relative to the company's asset base, which could be attributed to various factors such as changes in market conditions, operational challenges, or shifts in the company's strategy.
Overall, while the increasing trend in Operating ROA from March 2020 to September 2023 indicates improving operational performance and asset management by ON Semiconductor Corporation, the recent decline in the ratio highlights the importance of monitoring and understanding the factors influencing the company's profitability and efficiency in utilizing its assets.
Peer comparison
Dec 31, 2024