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ON Semiconductor Corp. (NASDAQ:ON)

This company has been moved to the archive! The financial data has not been updated since April 29, 2024.

Common-Size Balance Sheet: Assets

ON Semiconductor Corp., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Cash and cash equivalents 18.79 24.37 14.05 12.47 10.61
Receivables, net 7.08 7.03 8.41 7.80 8.37
Inventories 15.98 13.50 14.33 14.44 14.63
Other current assets 2.89 2.93 2.49 2.03 2.24
Current assets 44.74% 47.83% 39.29% 36.73% 35.84%
Property, plant and equipment, net 33.31 28.81 26.22 28.98 30.76
ROU financing lease assets 0.32 0.38 0.23 0.00 0.00
Property, plant and equipment and ROU financing lease assets, net 33.63% 29.19% 26.46% 28.98% 30.76%
Goodwill 11.94 13.17 20.13 19.19 19.69
Intangible assets, net 2.26 3.00 5.15 5.41 7.01
Deferred tax assets 4.55 3.14 3.81 4.95 3.65
Other assets 2.89 3.66 5.18 4.73 3.04
Non-current assets 55.26% 52.17% 60.71% 63.27% 64.16%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

Based on: 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31).

An analysis of the asset composition reveals a strategic shift in the balance sheet structure between 2019 and 2023. The most prominent trend is a transition from intangible-heavy assets toward increased liquidity and physical production capacity, resulting in a more liquid and tangible asset base.

Liquidity and Current Asset Trends
Current assets as a percentage of total assets grew from 35.84% in 2019 to 44.74% in 2023, peaking at 47.83% in 2022. This increase was primarily driven by a significant expansion in cash and cash equivalents, which rose from 10.61% to 18.79% over the period, with a notable peak of 24.37% in 2022. Receivables remained relatively stable, fluctuating slightly between 7% and 8.4%, while inventories saw a modest increase to 15.98% by 2023, suggesting a slight buildup in stock relative to the total asset base.
Fixed Asset and Capital Investment
Property, plant, and equipment (PP&E), net, exhibited a U-shaped trend. After declining from 30.76% in 2019 to a low of 26.22% in 2021, there was a subsequent sharp increase to 33.31% by 2023. When combined with ROU financing lease assets, the total net fixed asset position reached 33.63% of total assets in 2023. This pattern indicates a period of intensified capital expenditure and capacity expansion starting in 2022.
Intangible Assets and Goodwill Devaluation
A consistent downward trend is observed in the proportion of "soft" assets. Goodwill declined substantially from 19.69% in 2019 to 11.94% in 2023. Similarly, net intangible assets decreased from 7.01% to 2.26% over the same period. This significant reduction suggests either a systematic amortization of intangible assets or impairment charges, reducing the reliance on non-physical assets for the company's total valuation.
Non-Current Asset Composition
Total non-current assets decreased from 64.16% in 2019 to 55.26% in 2023. While PP&E increased in the latter years, this growth was not sufficient to offset the rapid decline in goodwill and intangible assets. Consequently, the overall weight of the balance sheet has shifted toward current assets, enhancing the short-term financial flexibility of the organization.

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