ON Semiconductor Corporation (ON)

Financial leverage ratio

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	8,425,500	8,522,300	8,524,500	7,564,300
Total stockholders’ equity	US$ in thousands	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	3,301,700	3,215,300	3,274,300	3,198,200
Financial leverage ratio		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	2.55	2.65	2.60	2.37

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 shown a decreasing trend over the past eight quarters, indicating a reduction in the proportion of the company's debt in relation to its equity. This decline suggests that the company has been relying less on debt financing to fund its operations and investments. In Q4 2023, the financial leverage ratio was 1.70, the lowest among the data points provided, signaling a stronger equity position relative to debt. It is important to note that a lower financial leverage ratio generally indicates lower financial risk and greater financial stability for the company. Continued monitoring of this ratio is essential to assess the company's long-term financial health and risk management strategies.