ON Semiconductor Corporation (ON)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,795,600 | 2,013,000 | 2,281,100 | 2,590,000 | 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 |
| Long-term debt | US$ in thousands | 3,345,900 | 2,547,200 | 2,545,700 | 2,544,100 | 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 |
| 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 |
| Return on total capital | 14.79% | 18.08% | 20.96% | 24.28% | 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% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,795,600K ÷ ($3,345,900K + $8,796,400K)
= 14.79%
The return on total capital for ON Semiconductor Corporation has shown a fluctuating trend over the past few years. Starting at a relatively low level of 3.57% in March 2020, it exhibited some variability before steadily increasing to peak at 27.66% in September 2023. However, there was a decline in the return on total capital to 14.79% by December 2024.
From March 2023 to March 2024, there was a noticeable decrease in the return on total capital from 26.47% to 24.28%. This was followed by a further decrease to 20.96% in June 2024 and a continued downward trend to reach 14.79% by December 2024.
Despite the recent decline, ON Semiconductor Corporation has historically maintained double-digit returns on total capital, indicating effective capital management. Investors and stakeholders may want to monitor future financial performance to understand whether the decline in return on total capital is a temporary fluctuation or a more sustained trend.
Peer comparison
Dec 31, 2024