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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 Income Statement

ON Semiconductor Corp., common-size consolidated income statement

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Revenue 100.00 100.00 100.00 100.00 100.00
Cost of revenue -52.94 -51.03 -59.73 -67.35 -64.23
Gross profit 47.06% 48.97% 40.27% 32.65% 35.77%
Research and development -7.00 -7.21 -9.72 -12.23 -11.61
Selling and marketing -3.38 -3.46 -4.36 -5.30 -5.45
General and administrative -4.39 -4.12 -4.52 -4.92 -5.15
Litigation settlement 0.00 0.00 0.00 0.00 -3.07
Amortization of acquisition-related intangible assets -0.62 -0.98 -1.47 -2.29 -2.09
Restructuring, asset impairments and other charges, net -0.91 -0.21 -1.06 -1.24 -0.52
Goodwill and intangible asset impairment 0.00 -4.65 -0.04 -0.02 -0.03
Operating expenses -16.29% -20.62% -21.17% -26.02% -27.93%
Operating income 30.76% 28.34% 19.10% 6.64% 7.84%
Interest expense -0.91 -1.14 -1.93 -3.20 -2.69
Interest income 1.13 0.19 0.02 0.09 0.18
Loss on debt refinancing and prepayment -0.16 -0.09 -0.43 0.00 -0.11
Gain (loss) on divestiture of businesses -0.01 0.80 0.15 0.00 0.00
Other income (expense), net -0.09 0.26 0.27 -0.16 -0.21
Other income (expense), net -0.04% 0.03% -1.93% -3.27% -2.83%
Income before income taxes 30.73% 28.37% 17.18% 3.36% 5.01%
Income tax (provision) benefit -4.24 -5.51 -2.18 1.14 -1.14
Net income 26.48% 22.87% 15.00% 4.50% 3.88%
Net income attributable to non-controlling interest -0.02 -0.02 -0.02 -0.04 -0.04
Net income attributable to ON Semiconductor Corporation 26.46% 22.85% 14.98% 4.46% 3.84%

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).

The company has demonstrated a significant expansion in profitability and operational efficiency over the five-year period ending December 31, 2023. Net income attributable to the corporation grew substantially from 3.84% of revenue in 2019 to 26.46% in 2023, reflecting a strong positive trend in bottom-line performance.

Gross Margin Expansion
A consistent improvement in gross profitability is observed. The cost of revenue decreased from 64.23% in 2019 to 52.94% in 2023. This resulted in gross profit margins rising from 35.77% to a peak of 48.97% in 2022, before stabilizing at 47.06% in 2023.
Operating Expense Optimization
Total operating expenses as a percentage of revenue declined steadily from 27.93% in 2019 to 16.29% in 2023. This reduction was driven primarily by a decrease in research and development spending, which fell from 11.61% to 7.00%, and a reduction in selling and marketing expenses from 5.45% to 3.38%. General and administrative expenses remained relatively stable, fluctuating between 4.12% and 5.15%.
Operating Income Growth
Operating income margins experienced an aggressive upward trajectory, increasing from 7.84% in 2019 to 30.76% in 2023. The most pronounced growth occurred between 2020 and 2022, where the margin increased from 6.64% to 28.34%, indicating strong operating leverage.
Non-Operating Items and Financial Costs
Interest expenses showed a downward trend, decreasing from 2.69% of revenue in 2019 to 0.91% in 2023. Concurrently, interest income rose significantly in the final year to 1.13%, suggesting an improved cash position or more favorable financing conditions.
Net Profitability and Tax Impact
Income before income taxes grew from 5.01% in 2019 to 30.73% in 2023. While the income tax provision varied—peaking at 5.51% of revenue in 2022—the overall effect was a dramatic increase in the net income margin, which scaled from 3.88% to 26.48% over the analyzed period.

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