ON Semiconductor Corporation (ON)

Debt-to-equity 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-equity ratio		0.33	0.49	0.64	0.84	0.87

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $2,542,600K ÷ $7,782,600K
= 0.33

The debt-to-equity ratio of ON Semiconductor Corp. has shown a decreasing trend over the past five years. As of December 31, 2023, the ratio stands at 0.43, indicating that the company has $0.43 in debt for every $1 of equity. This represents a significant improvement from the ratio of 1.09 recorded at the end of 2019.

The decline in the debt-to-equity ratio suggests that ON Semiconductor Corp. has been reducing its reliance on debt financing relative to equity financing, which can be viewed positively by investors and creditors. A lower debt-to-equity ratio generally indicates a lower financial risk for the company, as it implies a stronger equity base compared to debt obligations. This trend could reflect prudent financial management and a stronger balance sheet position for the company.

Overall, the decreasing trend in ON Semiconductor Corp.'s debt-to-equity ratio signals an improving financial leverage position and may indicate a more stable and sustainable capital structure over the years. However, further analysis of the company's overall financial health, profitability, and cash flow performance would be necessary to gain a more holistic understanding of its financial standing.