Name: ON Semiconductor Corp. (NASDAQ:ON) | Income Statement
Creator: Stock Analysis on Net

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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ON Semiconductor Corp., consolidated income statement

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	8,253,000)	8,326,200)	6,739,800)	5,255,000)	5,517,900)
Cost of revenue	(4,369,500)	(4,249,000)	(4,025,500)	(3,539,200)	(3,544,300)
Gross profit	3,883,500)	4,077,200)	2,714,300)	1,715,800)	1,973,600)
Research and development	(577,300)	(600,200)	(655,000)	(642,900)	(640,900)
Selling and marketing	(279,100)	(287,900)	(293,600)	(278,700)	(301,000)
General and administrative	(362,400)	(343,200)	(304,800)	(258,700)	(284,000)
Litigation settlement	—)	—)	—)	—)	(169,500)
Amortization of acquisition-related intangible assets	(51,100)	(81,200)	(99,000)	(120,300)	(115,200)
Restructuring, asset impairments and other charges, net	(74,900)	(17,900)	(71,400)	(65,200)	(28,700)
Goodwill and intangible asset impairment	—)	(386,800)	(2,900)	(1,300)	(1,600)
Operating expenses	(1,344,800)	(1,717,200)	(1,426,700)	(1,367,100)	(1,540,900)
Operating income	2,538,700)	2,360,000)	1,287,600)	348,700)	432,700)
Interest expense	(74,800)	(94,900)	(130,400)	(168,400)	(148,300)
Interest income	93,100)	15,500)	1,400)	4,900)	10,200)
Loss on debt refinancing and prepayment	(13,300)	(7,100)	(29,000)	—)	(6,200)
Gain (loss) on divestiture of businesses	(700)	67,000)	10,200)	—)	—)
Other income (expense), net	(7,200)	21,700)	18,000)	(8,600)	(11,800)
Other income (expense), net	(2,900)	2,200)	(129,800)	(172,100)	(156,100)
Income before income taxes	2,535,800)	2,362,200)	1,157,800)	176,600)	276,600)
Income tax (provision) benefit	(350,200)	(458,400)	(146,600)	59,800)	(62,700)
Net income	2,185,600)	1,903,800)	1,011,200)	236,400)	213,900)
Net income attributable to non-controlling interest	(1,900)	(1,600)	(1,600)	(2,200)	(2,200)
Net income attributable to ON Semiconductor Corporation	2,183,700)	1,902,200)	1,009,600)	234,200)	211,700)

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 financial performance from 2019 to 2023 reflects a period of significant expansion in both top-line revenue and bottom-line profitability. After a slight contraction in revenue between 2019 and 2020, a strong growth trajectory was established, peaking in 2022 before stabilizing in 2023.

Revenue and Gross Profitability: Revenue increased from 5.52 billion US$ in 2019 to 8.25 billion US$ in 2023. This growth is accompanied by a substantial expansion in gross profit, which rose from 1.97 billion US$ in 2019 to a peak of 4.08 billion US$ in 2022. The gross margin showed marked improvement, rising from approximately 35.8% in 2019 to 47.0% in 2023, indicating enhanced pricing power or a more favorable product mix.
Operating Expense Analysis: Operating expenses have been managed with high efficiency relative to revenue growth. Research and development costs remained remarkably stable, fluctuating between 577 million US$ and 655 million US$ over the five-year period. Selling and marketing expenses similarly remained flat. However, general and administrative expenses showed a steady upward trend, increasing from 284 million US$ in 2019 to 362.4 million US$ in 2023. A significant one-time goodwill and intangible asset impairment of 386.8 million US$ was recorded in 2022, which temporarily inflated operating expenses for that period.
Operating and Net Income Trends: Operating income experienced exponential growth, rising from 432.7 million US$ in 2019 to 2.54 billion US$ in 2023. This suggests that the company successfully leveraged its fixed cost base as revenue scaled. Net income attributable to the corporation followed a similar trajectory, increasing from 211.7 million US$ in 2019 to 2.18 billion US$ in 2023, representing more than a ten-fold increase in annual net earnings.
Interest and Non-Operating Items: A positive trend is observed in the company's financing costs and cash management. Interest expenses decreased steadily from 148.3 million US$ in 2019 to 74.8 million US$ in 2023. Concurrently, interest income saw a dramatic increase, rising from 10.2 million US$ in 2019 to 93.1 million US$ in 2023, suggesting a strengthened liquidity position or increased cash reserves.

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