ON Semiconductor Corporation (ON)

Return on total capital

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before interest and tax (EBIT)	US$ in thousands	2,608,700	2,455,500	1,286,600	342,800	422,700
Long-term debt	US$ in thousands	2,542,600	3,045,700	2,913,900	2,959,700	2,876,500
Total stockholders’ equity	US$ in thousands	7,782,600	6,188,500	4,585,400	3,538,500	3,301,700
Return on total capital		25.27%	26.59%	17.16%	5.28%	6.84%

December 31, 2023 calculation

Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $2,608,700K ÷ ($2,542,600K + $7,782,600K)
= 25.27%

The return on total capital for ON Semiconductor Corp. has shown variability over the past five years. In 2023, the return on total capital was 23.46%, which represents a decrease from the previous year's level of 29.42%. However, the return is still relatively high compared to earlier years such as 2020 and 2019 when the return on total capital was 5.91% and 9.15% respectively.

The significant increase in the return on total capital from 2020 to 2022 indicates an improvement in the company's profitability and efficiency in utilizing its total capital to generate returns for shareholders. The fluctuation in the return on total capital suggests that ON Semiconductor Corp. may have experienced changes in its operational performance, capital structure, or investment strategies during this period.

Overall, the return on total capital for ON Semiconductor Corp. has shown positive trends in recent years, with the company demonstrating its ability to generate satisfactory returns for stakeholders on the total capital invested in its operations.