ON Semiconductor Corporation (ON)

Return on equity (ROE)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,572,800	2,183,700	1,902,200	1,009,600	234,200
Total stockholders’ equity	US$ in thousands	8,796,400	7,782,600	6,188,500	4,585,400	3,538,500
ROE		17.88%	28.06%	30.74%	22.02%	6.62%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,572,800K ÷ $8,796,400K
= 17.88%

ON Semiconductor Corporation has shown a fluctuating trend in its Return on Equity (ROE) over the past five years. The ROE was 6.62% as of December 31, 2020, indicating a relatively low return compared to shareholders' equity. However, there has been a significant improvement in ROE over the subsequent years, reaching 22.02% by December 31, 2021, and further increasing to 30.74% by December 31, 2022, exhibiting a strong growth in profitability and efficiency in utilizing shareholders' equity to generate earnings.

Although there was a slight decrease in ROE to 28.06% by December 31, 2023, the company's performance remained robust. Finally, by December 31, 2024, the ROE decreased to 17.88%, reflecting a decline in the return generated on equity compared to the previous year.

Overall, the upward trend in ON Semiconductor Corporation's ROE from 2020 to 2022 showcases the company's ability to efficiently utilize shareholders' equity to generate profits. It is essential for investors to monitor the company's ROE over time to assess its profitability and efficiency in creating value for shareholders.