ON Semiconductor Corporation (ON)

Solvency ratios

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
Debt-to-assets ratio 0.24 0.18 0.19 0.19 0.19 0.19 0.20 0.21 0.25 0.27 0.28 0.30 0.30 0.33 0.34 0.33 0.34 0.38 0.42 0.43
Debt-to-capital ratio 0.28 0.23 0.23 0.24 0.25 0.25 0.27 0.28 0.33 0.35 0.36 0.38 0.39 0.41 0.43 0.44 0.46 0.51 0.56 0.56
Debt-to-equity ratio 0.38 0.30 0.31 0.31 0.33 0.34 0.36 0.39 0.49 0.54 0.57 0.61 0.64 0.71 0.77 0.77 0.84 1.03 1.25 1.26
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

ON Semiconductor Corporation's solvency ratios indicate the company's ability to meet its long-term financial obligations. The Debt-to-assets ratio has shown a decreasing trend over the years, moving from 0.43 in March 2020 to 0.18 in September 2024. This suggests that the company is reducing its reliance on debt to finance its assets.

The Debt-to-capital ratio has also decreased steadily from 0.56 in March 2020 to 0.28 in December 2024. This implies that ON Semiconductor is relying less on debt to fund its operations and investments, which is a positive sign for its financial health.

Furthermore, the Debt-to-equity ratio has shown a consistent decline from 1.26 in March 2020 to 0.38 in December 2024. This indicates that the company's level of debt relative to its equity is decreasing, reflecting a stronger financial position and lower financial risk.

Lastly, the Financial leverage ratio has decreased from 2.93 in March 2020 to 1.60 in December 2024, indicating that ON Semiconductor's financial leverage has been decreasing over time, which can be interpreted as a positive sign of financial stability and reduced risk for investors and creditors.

Overall, the solvency ratios of ON Semiconductor Corporation demonstrate a healthy financial position with improving leverage and debt management, indicating the company's ability to meet its long-term obligations and sustain its operations effectively.

Coverage ratios

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
Interest coverage 161.77 80.52 60.67 40.47 34.88 32.06 26.49 23.86 25.87 21.75 19.84 15.22 9.87 6.78 4.43 2.84 2.04 1.81 0.85 1.63

The interest coverage ratio measures the ability of ON Semiconductor Corporation to cover its interest expenses with its operating income. Looking at the historical trend from March 31, 2020, to December 31, 2024, we observe a significant improvement in ON Semiconductor's interest coverage ratio.

The ratio started at a relatively low level of 1.63 on March 31, 2020, indicating a limited ability to cover interest expenses. However, the ratio gradually increased over the quarters, reaching 161.77 on December 31, 2024. This substantial increase signifies a strong improvement in ON Semiconductor's ability to meet its interest obligations.

The consistent growth in the interest coverage ratio reflects a positive trend in the company's operational performance and financial stability. A higher interest coverage ratio indicates that ON Semiconductor is generating more than enough operating income to cover its interest expenses, which is a favorable sign for creditors and investors.

Overall, the progressive increase in ON Semiconductor's interest coverage ratio demonstrates a strengthening financial position and suggests that the company is effectively managing its debt and interest obligations.

See also:

ON Semiconductor Corporation Solvency Ratios (Quarterly Data)