Stock Analysis on Net
Stock Analysis on Net

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: Liabilities and Stockholders’ Equity

ON Semiconductor Corp., common-size consolidated balance sheet: liabilities and stockholders’ equity

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Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Accounts payable 5.49 7.11 6.60 6.61 6.45
Accrued payroll and related benefits 1.39 2.38 2.96 1.92 1.82
Amount due to EFK seller 0.00 1.97 0.00 0.00 0.00
Sales related reserves 0.82 1.75 2.39 2.69 2.94
Income taxes payable 0.28 0.29 0.25 0.29 0.27
Other 2.53 2.35 2.04 1.67 1.37
Accrued expenses and other current liabilities 5.02% 8.74% 7.63% 6.58% 6.39%
Current portion of financing lease liabilities 0.01 0.12 0.13 0.00 0.00
Current portion of long-term debt 6.01 1.23 1.67 6.13 8.74
Current liabilities 16.52% 17.21% 16.03% 19.32% 21.58%
Long-term debt, excluding current portion 19.24 25.43 30.27 34.15 34.14
Deferred tax liabilities 0.29 0.28 0.45 0.66 0.71
Long-term financing lease liabilities 0.17 0.19 0.11 0.00 0.00
Other long-term liabilities 4.75 5.07 5.31 4.83 4.11
Long-term liabilities 24.45% 30.97% 36.13% 39.63% 38.97%
Total liabilities 40.97% 48.18% 52.17% 58.95% 60.55%
Common stock, $0.01 par value 0.05 0.05 0.06 0.07 0.07
Additional paid-in capital 39.43 38.99 48.13 47.68 45.21
Accumulated other comprehensive loss -0.34 -0.19 -0.42 -0.66 -0.64
Accumulated earnings 49.55 36.44 25.30 16.45 14.14
Treasury stock, at cost -29.79 -23.62 -25.44 -22.71 -19.59
Total ON Semiconductor Corporation stockholders’ equity 58.89% 51.66% 47.64% 40.82% 39.19%
Non-controlling interest 0.14 0.15 0.20 0.23 0.27
Total stockholders’ equity 59.03% 51.82% 47.83% 41.05% 39.45%
Total liabilities and stockholders’ equity 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).

A comprehensive analysis of the capital structure reveals a significant shift in the financing mix from 2019 to 2023. The organization has transitioned from a liability-heavy balance sheet to one predominantly funded by stockholders' equity, indicating a strategic reduction in financial leverage and a substantial increase in retained value.

Liability Trends and Deleveraging
Total liabilities have decreased consistently from 60.55% of total liabilities and stockholders' equity in 2019 to 40.97% by 2023. This downward trajectory is primarily driven by a marked reduction in long-term debt, which fell from 34.14% to 19.24% over the five-year period. Long-term liabilities as a whole declined from 38.97% to 24.45%, reflecting a concerted effort to reduce long-term borrowing relative to the total capital base.
Equity Growth and Capital Accumulation
Total stockholders' equity has expanded from 39.45% in 2019 to 59.03% in 2023. The primary driver of this growth is the surge in accumulated earnings, which rose from 14.14% to 49.55%. This suggests strong profitability and a strategy of reinvesting earnings back into the company. Simultaneously, the proportion of treasury stock increased from -19.59% to -29.79%, indicating an aggressive share repurchase program that has offset some of the equity growth while concentrating ownership.
Current Liability Dynamics
Current liabilities have seen an overall decline, moving from 21.58% in 2019 to 16.52% in 2023. Within this category, accounts payable remained relatively stable until 2022, before dropping to 5.49% in 2023. The current portion of long-term debt exhibited volatility, peaking at 8.74% in 2019, dropping to a low of 1.23% in 2022, and rising again to 6.01% in 2023, suggesting fluctuations in debt maturity schedules.
Other Financial Observations
Sales-related reserves showed a consistent downward trend, decreasing from 2.94% in 2019 to 0.82% in 2023. Deferred tax liabilities also declined from 0.71% to 0.29% over the same period. These changes, combined with the overall reduction in liabilities, contribute to a strengthened solvency profile and reduced financial risk.

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