ON Semiconductor Corporation (ON)

Debt-to-equity 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-equity ratio		0.33	0.34	0.36	0.39	0.49	0.54	0.57	0.61	0.64	0.71	0.77	0.77	0.84	1.03	1.25	1.26	0.87	0.90	1.08	0.83

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 eight quarters, from 0.64 in Q1 2022 to 0.43 in Q4 2023. This indicates that the company has been gradually reducing its reliance on debt to finance its operations in relation to shareholders' equity. A lower debt-to-equity ratio generally signifies a lower risk level for the company, as it implies that the company has a smaller portion of debt relative to its equity.

Despite the fluctuations in the ratio over the quarters, the overall downward trend suggests that ON Semiconductor Corp. has been effectively managing its debt levels. Investors and creditors may view this improvement positively as the company appears to be strengthening its financial position by having a more conservative capital structure. Additionally, a decreasing debt-to-equity ratio may also indicate that the company is becoming more efficient in generating profits from its investments without increasing its debt burden disproportionately.