ON Semiconductor Corporation (ON)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	3,345,900	2,542,600	3,045,700	2,913,900	2,959,700
Total stockholders’ equity	US$ in thousands	8,796,400	7,782,600	6,188,500	4,585,400	3,538,500
Debt-to-capital ratio		0.28	0.25	0.33	0.39	0.46

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $3,345,900K ÷ ($3,345,900K + $8,796,400K)
= 0.28

The debt-to-capital ratio of ON Semiconductor Corporation has shown a decreasing trend over the years, dropping from 0.46 as of December 31, 2020, to 0.28 as of December 31, 2024. This indicates that the company has been effectively reducing its reliance on debt in relation to its total capital structure. A lower debt-to-capital ratio suggests a healthier financial position and lower financial risk, as the company is using less debt financing relative to its total capital. ON Semiconductor's decreasing ratio demonstrates a prudent financial management strategy aimed at strengthening its overall financial stability and flexibility.