ON Semiconductor Corporation (ON)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	7,782,600	6,188,500	4,585,400	3,538,500	3,301,700
ROE		28.06%	30.74%	22.02%	6.62%	6.41%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $2,183,700K ÷ $7,782,600K
= 28.06%

ON Semiconductor Corp.'s return on equity (ROE) has shown a positive trend over the past five years, increasing from 6.41% in 2019 to 28.06% in 2023. This indicates that the company has been effectively utilizing its shareholders' equity to generate profits. The significant improvement in ROE reflects positively on the company's efficiency in generating returns for its shareholders. ON Semiconductor Corp.'s ROE has consistently outperformed its previous years' performance, with a notable increase in profitability and shareholder value creation. Overall, the increasing trend in ROE suggests that ON Semiconductor Corp. has been successful in improving its profitability and generating higher returns for its equity holders over the years.