ON Semiconductor Corporation (ON)

Debt-to-capital ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	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	2,876,500	2,878,800	3,550,800	2,639,000
Total stockholders’ equity	US$ in thousands	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	3,301,700	3,215,300	3,274,300	3,198,200
Debt-to-capital ratio		0.25	0.25	0.27	0.28	0.33	0.35	0.36	0.38	0.39	0.41	0.43	0.44	0.46	0.51	0.56	0.56	0.47	0.47	0.52	0.45

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 relatively consistent over the past eight quarters, ranging from 0.30 to 0.39. This ratio indicates the proportion of the company's capital structure that is funded by debt. A lower debt-to-capital ratio suggests that the company relies more on equity financing rather than debt, which can be seen as a positive sign of financial stability and lower financial risk. ON Semiconductor's ratios between 0.30 and 0.39 indicate a moderate level of debt usage in its capital structure. It is important to monitor this ratio over time to ensure that the company maintains a healthy balance between debt and equity financing.