ON Semiconductor Corporation (ON)

Debt-to-equity 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-equity ratio		0.38	0.30	0.31	0.31	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

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $3,345,900K ÷ $8,796,400K
= 0.38

ON Semiconductor Corporation has shown a declining trend in its debt-to-equity ratio over the past few years. The ratio decreased from 1.26 as of March 31, 2020, to 0.38 as of December 31, 2024. This indicates that the company has been reducing its level of debt relative to its equity over time.

A decreasing debt-to-equity ratio can be viewed positively by investors and creditors as it suggests a lower financial risk and a stronger financial position for the company. It also implies that the company is relying less on debt financing and more on equity financing, which could lead to improved financial stability and flexibility in the long run.

Overall, the decreasing trend in ON Semiconductor Corporation's debt-to-equity ratio reflects a positive financial management strategy that aims to strengthen the company's balance sheet and mitigate potential risks associated with high levels of debt.