ON Semiconductor Corporation (ON)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	2,183,700	1,902,200	1,009,600	234,200	211,700
Total assets	US$ in thousands	13,215,200	11,978,500	9,626,000	8,668,000	8,425,500
ROA		16.52%	15.88%	10.49%	2.70%	2.51%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $2,183,700K ÷ $13,215,200K
= 16.52%

The Return on Assets (ROA) of ON Semiconductor Corp. has shown a positive trend over the past five years. In 2019 and 2020, the ROA was relatively low at 2.51% and 2.70%, indicating lower efficiency in generating profits from its assets. However, there was a notable improvement in 2021 with ROA increasing to 10.49%, signifying a better utilization of assets to generate earnings.

The trend continued to strengthen in 2022 and 2023, with ROA reaching 15.88% and 16.52% respectively. These figures suggest a significant enhancement in the company's ability to generate profits from its assets, indicating improved operational efficiency and effective asset management strategies.

Overall, the increasing trend in ROA indicates that ON Semiconductor Corp. has been able to enhance its profitability relative to its asset base over the years, showcasing the company's ability to generate higher returns from its investments.