ON Semiconductor Corporation (ON)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,608,700	2,773,500	2,490,500	2,378,400	2,455,500	2,162,400	2,135,300	1,805,100	1,286,600	950,400	666,700	452,900	342,800	305,800	141,500	259,000	422,700	519,400	811,000	877,200
Long-term debt	US$ in thousands	2,542,600	2,541,100	2,539,600	2,538,000	3,045,700	3,046,500	3,047,400	3,035,400	2,913,900	2,910,500	2,907,100	2,806,900	2,959,700	3,537,600	4,044,800	4,043,000	2,876,500	2,878,800	3,550,800	2,639,000
Total stockholders’ equity	US$ in thousands	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	3,301,700	3,215,300	3,274,300	3,198,200
Return on total capital		25.27%	27.66%	26.15%	26.47%	26.59%	24.85%	25.31%	22.47%	17.16%	13.51%	9.96%	7.04%	5.28%	4.39%	1.94%	3.57%	6.84%	8.52%	11.88%	15.03%

December 31, 2023 calculation

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

ON Semiconductor Corp.'s return on total capital has shown a generally positive trend over the past eight quarters, indicating the company's ability to generate profits relative to the total capital employed in its operations. The return on total capital ranged from 22.24% in Q1 2022 to 29.42% in Q4 2022, showcasing a fluctuation within a moderate range. Overall, the company's return on total capital has been consistently above 20%, implying efficient utilization of both debt and equity in maximizing shareholder value. This trend suggests that ON Semiconductor Corp. has been effectively managing its capital structure and investments to generate solid returns for its stakeholders.