ON Semiconductor Corporation (ON)

Financial leverage 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
Total assets	US$ in thousands	14,089,800	13,923,600	13,658,800	13,482,900	13,215,200	13,281,300	12,762,700	12,274,300	11,978,500	11,100,700	10,788,700	10,212,400	9,626,000	8,940,700	8,594,400	8,630,400	8,668,000	9,254,000	9,527,800	9,420,800
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
Financial leverage ratio		1.60	1.62	1.64	1.66	1.70	1.77	1.83	1.90	1.94	1.96	2.00	2.04	2.10	2.17	2.27	2.38	2.45	2.70	2.94	2.93

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 gradually decreasing over the analyzed period, from 2.93 as of March 31, 2020, to 1.60 as of December 31, 2024. This indicates that the company's reliance on debt to finance its operations has been declining over time. A decreasing trend in financial leverage ratio may imply a strengthening financial position and reduced risk of financial distress. ON Semiconductor Corporation seems to be gradually managing its debt levels effectively and moving towards a more balanced capital structure. This trend may be seen positively by investors and creditors as it suggests improved financial stability and lower vulnerability to economic downturns.