ON Semiconductor Corporation (ON)

Financial leverage ratio

Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Total assets US$ in thousands 13,215,200 11,978,500 9,626,000 8,668,000 8,425,500
Total stockholders’ equity US$ in thousands 7,782,600 6,188,500 4,585,400 3,538,500 3,301,700
Financial leverage ratio 1.70 1.94 2.10 2.45 2.55

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $13,215,200K ÷ $7,782,600K
= 1.70

The financial leverage ratio of ON Semiconductor Corp. has been on a declining trend over the past five years, indicating a reduction in the company's reliance on debt to finance its operations and growth. The ratio decreased from 2.55 in 2019 to 1.70 in 2023. This decrease suggests that the company has been able to lower its debt levels relative to its equity over the years, which can be viewed positively as it may lead to reduced financial risk and improved financial stability. The declining trend in the financial leverage ratio may also signal enhanced financial health and a stronger balance sheet position for ON Semiconductor Corp. as it progresses towards a more balanced capital structure.


Peer comparison

Dec 31, 2023


See also:

ON Semiconductor Corporation Financial Leverage