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.
Peer comparison
Dec 31, 2023