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