ON Semiconductor Corporation (ON)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 45.41% | 45.80% | 46.30% | 46.83% | 47.06% | 47.52% | 47.78% | 48.36% | 48.97% | 48.20% | 46.62% | 43.79% | 40.27% | 37.53% | 35.50% | 33.60% | 32.65% | 32.70% | 32.95% | 34.43% |
| Operating profit margin | 24.96% | 26.72% | 28.38% | 30.64% | 30.76% | 31.55% | 28.36% | 27.31% | 28.34% | 26.47% | 27.71% | 25.11% | 19.10% | 15.38% | 11.75% | 8.35% | 6.64% | 6.13% | 2.97% | 5.03% |
| Pretax margin | 25.92% | 27.15% | 28.82% | 30.97% | 30.70% | 32.22% | 28.70% | 27.32% | 28.35% | 25.57% | 26.62% | 23.41% | 17.15% | 12.78% | 8.73% | 5.38% | 3.32% | 2.63% | -0.49% | 1.85% |
| Net profit margin | 22.21% | 23.80% | 24.84% | 26.67% | 26.46% | 26.69% | 23.41% | 21.98% | 22.85% | 21.36% | 22.60% | 20.13% | 14.98% | 10.61% | 8.85% | 6.19% | 4.46% | 3.87% | -0.37% | 1.55% |
Based on the provided data, the profitability ratios of ON Semiconductor Corporation have shown varying trends over the analyzed periods.
1. Gross Profit Margin:
The gross profit margin of ON Semiconductor has been generally increasing, indicating the company's ability to efficiently control its production costs and generate profit on its sales. The margin improved from 34.43% on March 31, 2020, to 45.41% on December 31, 2024.
2. Operating Profit Margin:
The operating profit margin reflects the company's ability to generate profit from its core operations. It showed fluctuations during the analyzed periods, with a significant increase from 5.03% on March 31, 2020, to 30.64% on March 31, 2024. However, there were periods of decline in between.
3. Pretax Margin:
The pretax margin experienced fluctuations as well, with overall growth in profitability. It increased from 1.85% on March 31, 2020, to 25.92% on December 31, 2024. The company showed a consistent improvement in earnings before tax over the analyzed periods.
4. Net Profit Margin:
The net profit margin, representing the company's bottom line profitability after all expenses have been deducted, also demonstrated fluctuations. ON Semiconductor showed an upward trend in net profit margin, increasing from 1.55% on March 31, 2020, to 22.21% on December 31, 2024. This indicates an improvement in the company's ability to convert revenue into profit.
Overall, ON Semiconductor Corporation has shown positive trends in its profitability ratios over the analyzed periods, reflecting improved operational efficiency and profitability. However, fluctuations in certain periods highlight the importance of continuous monitoring and management of costs and revenues to sustain and enhance profitability in the long term.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 11.16% | 12.61% | 14.18% | 16.13% | 16.52% | 16.76% | 15.31% | 14.94% | 15.88% | 15.53% | 15.96% | 14.20% | 10.49% | 7.52% | 6.09% | 3.92% | 2.70% | 2.18% | -0.21% | 0.89% |
| Return on total capital | 14.79% | 18.08% | 20.96% | 24.28% | 25.27% | 27.66% | 26.15% | 26.47% | 26.59% | 24.85% | 25.31% | 22.47% | 17.16% | 13.51% | 9.96% | 7.04% | 5.28% | 4.39% | 1.94% | 3.57% |
| Return on equity (ROE) | 17.88% | 20.45% | 23.22% | 26.77% | 28.06% | 29.73% | 27.98% | 28.44% | 30.74% | 30.48% | 31.94% | 29.01% | 22.02% | 16.31% | 13.84% | 9.32% | 6.62% | 5.89% | -0.61% | 2.60% |
Based on the provided data on profitability ratios for ON Semiconductor Corporation, we can observe the following trends:
1. Operating Return on Assets (Operating ROA):
The Operating ROA has shown a consistent improvement from 2.89% in March 2020 to a peak of 19.81% in September 2023, before slightly declining to 19.21% by December 2023. Overall, the company has been able to effectively generate operating income from its assets over the years, indicating efficient asset utilization.
2. Return on Assets (ROA):
The ROA also displays a positive trajectory, starting from 0.89% in March 2020 and reaching a high of 16.52% in December 2023. This metric provides insights into the company's overall profitability in relation to its total assets.
3. Return on Total Capital:
The Return on Total Capital demonstrates a similar trend to ROA, indicating the company's ability to generate returns from both equity and debt financing. However, there is a slight decline in this ratio from 26.59% in December 2022 to 14.79% by December 2024, which might suggest a decrease in efficiency in utilizing capital.
4. Return on Equity (ROE):
The ROE reflects the return that the company generates for its shareholders. ON Semiconductor Corporation has shown a steady increase in ROE from 2.60% in March 2020 to a peak of 30.74% in December 2022, before slightly decreasing to 17.88% by December 2024. The company has been able to effectively leverage equity to generate profits for its shareholders.
In conclusion, ON Semiconductor Corporation has shown overall positive trends in its profitability ratios, with improvements in operating performance, asset utilization, capital efficiency, and returns to equity holders over the evaluated periods. However, there are slight fluctuations and declines in certain ratios towards the end of the data timeline, indicating potential areas for further analysis and improvement.
See also:
ON Semiconductor Corporation Profitability Ratios (Quarterly Data)