ON Semiconductor Corporation (ON)

Debt-to-capital ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Long-term debt	US$ in thousands	3,345,900	2,547,200	2,545,700	2,544,100	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
Total stockholders’ equity	US$ in thousands	8,796,400	8,584,100	8,339,500	8,123,900	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
Debt-to-capital ratio		0.28	0.23	0.23	0.24	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

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 exhibited a declining trend over the past few years, indicating a strengthening financial position in terms of leverage. As of December 31, 2024, the ratio stood at 0.28, signifying that debt accounts for 28% of the company's total capital. This ratio has decreased from 0.56 in March 2020 to 0.28 in December 2024, reflecting a consistent effort by the company to reduce its debt relative to its total capital.

A decreasing debt-to-capital ratio suggests that ON Semiconductor Corporation has been effectively managing its debt levels in relation to its overall capital structure. A lower ratio implies that the company is relying less on debt financing and has more equity in its capital mix, which can enhance its financial stability and resilience to economic downturns. This trend may indicate improved creditworthiness and lower financial risk for the company.

Overall, the declining debt-to-capital ratio of ON Semiconductor Corporation demonstrates a prudent debt management strategy and a healthier balance sheet position, which may positively impact its long-term financial performance and sustainability.