ON Semiconductor Corporation (ON)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	7,782,600	6,188,500	4,585,400	3,538,500	3,301,700
Debt-to-capital ratio		0.25	0.33	0.39	0.46	0.47

December 31, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $2,542,600K ÷ ($2,542,600K + $7,782,600K)
= 0.25

The debt-to-capital ratio of ON Semiconductor Corp. has been showing a decreasing trend over the past five years, declining from 0.52 in 2019 to 0.30 in 2023. This indicates that the company has been lowering its reliance on debt financing relative to its total capital structure. A lower debt-to-capital ratio suggests a stronger financial position, as it implies a lower level of financial risk and better ability to meet its debt obligations. The trend reflects a potential effort by the company to reduce its debt levels and improve its financial health. However, it is essential to monitor this ratio over time to ensure the company maintains a balanced capital structure that supports its growth and operational needs.