ON Semiconductor Corporation (ON)

Debt-to-assets ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	2,542,600	3,045,700	2,913,900	2,959,700	2,876,500
Total assets	US$ in thousands	13,215,200	11,978,500	9,626,000	8,668,000	8,425,500
Debt-to-assets ratio		0.19	0.25	0.30	0.34	0.34

December 31, 2023 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $2,542,600K ÷ $13,215,200K
= 0.19

The debt-to-assets ratio of ON Semiconductor Corp. has shown a decreasing trend over the past five years, from 0.43 in 2019 to 0.25 in 2023. This indicates that the company has been reducing its reliance on debt financing in relation to its total assets. A lower debt-to-assets ratio is generally considered favorable as it suggests a lower financial risk and greater financial stability. ON Semiconductor Corp.'s decreasing ratio may indicate improved financial health and better management of its capital structure. However, it is important to note that this ratio should be considered in conjunction with other financial metrics to get a comprehensive understanding of the company's financial position.