ON Semiconductor Corporation (ON)

Financial leverage ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Total assets	US$ in thousands	14,089,800	13,215,200	11,978,500	9,626,000	8,668,000
Total stockholders’ equity	US$ in thousands	8,796,400	7,782,600	6,188,500	4,585,400	3,538,500
Financial leverage ratio		1.60	1.70	1.94	2.10	2.45

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,089,800K ÷ $8,796,400K
= 1.60

The financial leverage ratio of ON Semiconductor Corporation has been consistently decreasing over the past five years. From 2.45 in 2020, the ratio declined to 1.60 by the end of 2024. This downward trend indicates that the company's reliance on debt has been decreasing relative to its equity, reflecting a potentially improving financial position and reduced financial risk. A lower financial leverage ratio suggests that the company is using less debt to finance its operations and investments, which could lead to greater financial stability and flexibility in the long run.