ON Semiconductor Corporation (ON)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	2,533,900	2,360,600	1,156,200	174,400	274,400
Revenue	US$ in thousands	8,253,000	8,326,200	6,739,800	5,255,000	5,517,900
Pretax margin		30.70%	28.35%	17.15%	3.32%	4.97%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $2,533,900K ÷ $8,253,000K
= 30.70%

The pretax margin of ON Semiconductor Corp. has shown a positive trend over the last five years. The company's pretax margin has steadily improved from 5.01% in 2019 to 30.73% in 2023, indicating a strong increase in profitability. This upward trajectory suggests that ON Semiconductor Corp. has been successful in managing its operating expenses and generating higher levels of pre-tax earnings relative to its total revenue. The consistent growth in pretax margin reflects the company's effective cost management strategies and operational efficiencies, leading to improved overall financial performance.