ON Semiconductor Corporation (ON)

Return on equity (ROE)

		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
Net income (ttm)	US$ in thousands	1,572,800	1,755,600	1,936,600	2,175,000	2,183,700	2,225,300	1,954,500	1,833,700	1,902,200	1,723,800	1,721,600	1,449,900	1,009,600	672,700	523,600	338,100	234,200	201,700	-19,600	83,600
Total stockholders’ equity	US$ in thousands	8,796,400	8,584,100	8,339,500	8,123,900	7,782,600	7,484,300	6,984,100	6,448,000	6,188,500	5,656,000	5,389,500	4,998,200	4,585,400	4,123,700	3,784,400	3,629,600	3,538,500	3,423,400	3,236,100	3,214,900
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%

December 31, 2024 calculation

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

ON Semiconductor Corporation's return on equity (ROE) has exhibited significant fluctuations over the past few years. From March 31, 2020, to December 31, 2024, the ROE has experienced an overall increasing trend, starting at a low of 2.60% in March 2020 and reaching a peak of 31.94% in June 2022. However, after this peak, the ROE has gradually declined, reaching 17.88% by December 31, 2024.

The ROE shows the company's ability to generate profits from shareholders' equity, indicating how efficiently the company is utilizing its equity to generate net income. The increasing trend in ROE from 2.60% in March 2020 to 31.94% in June 2022 suggests that the company was improving its profitability and efficiency during this period.

However, the subsequent decline in ROE from June 2022 to December 2024 may indicate potential challenges or inefficiencies in the company's operations or financial management. It is crucial for investors and stakeholders to assess the reasons behind this decline in ROE and monitor future financial performance to ensure sustained profitability and value creation for shareholders.