Balance Sheet: Liabilities and Stockholders’ Equity

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

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

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Accounts payable	725,600)	852,100)	635,100)	572,900)	543,600)
Accrued payroll and related benefits	183,800)	284,800)	285,400)	166,800)	153,400)
Amount due to EFK seller	—)	236,300)	—)	—)	—)
Sales related reserves	108,300)	209,900)	229,900)	233,300)	247,300)
Income taxes payable	37,400)	34,800)	23,600)	25,500)	22,500)
Other	333,700)	281,500)	196,000)	144,400)	115,600)
Accrued expenses and other current liabilities	663,200)	1,047,300)	734,900)	570,000)	538,800)
Current portion of financing lease liabilities	800)	14,200)	12,700)	—)	—)
Current portion of long-term debt	794,000)	147,800)	160,700)	531,600)	736,000)
Current liabilities	2,183,600)	2,061,400)	1,543,400)	1,674,500)	1,818,400)
Long-term debt, excluding current portion	2,542,600)	3,045,700)	2,913,900)	2,959,700)	2,876,500)
Deferred tax liabilities	38,700)	34,100)	43,200)	57,300)	60,200)
Long-term financing lease liabilities	22,400)	23,000)	10,200)	—)	—)
Other long-term liabilities	627,300)	607,300)	510,900)	418,400)	346,300)
Long-term liabilities	3,231,000)	3,710,100)	3,478,200)	3,435,400)	3,283,000)
Total liabilities	5,414,600)	5,771,500)	5,021,600)	5,109,900)	5,101,400)
Common stock, $0.01 par value	6,200)	6,100)	6,000)	5,700)	5,700)
Additional paid-in capital	5,210,900)	4,670,900)	4,633,300)	4,133,100)	3,809,500)
Accumulated other comprehensive loss	(45,200)	(23,200)	(40,600)	(57,600)	(54,300)
Accumulated earnings	6,548,100)	4,364,400)	2,435,100)	1,425,500)	1,191,300)
Treasury stock, at cost	(3,937,400)	(2,829,700)	(2,448,400)	(1,968,200)	(1,650,500)
Total ON Semiconductor Corporation stockholders’ equity	7,782,600)	6,188,500)	4,585,400)	3,538,500)	3,301,700)
Non-controlling interest	18,000)	18,500)	19,000)	19,600)	22,400)
Total stockholders’ equity	7,800,600)	6,207,000)	4,604,400)	3,558,100)	3,324,100)
Total liabilities and stockholders’ equity	13,215,200)	11,978,500)	9,626,000)	8,668,000)	8,425,500)

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 data reveals several notable trends over the period analyzed.

Current Liabilities: Current liabilities exhibit fluctuations with a general upward trend, increasing from US$1,818,400 thousand in 2019 to US$2,183,600 thousand in 2023. Accounts payable rose initially, peaking in 2022 at US$852,100 thousand before declining to US$725,600 thousand in 2023. Accrued payroll saw a significant increase from 2019 to 2021, then declined sharply by 2023. Sales-related reserves steadily decreased over the years, suggesting improved management or reduced future liabilities. Accrued expenses and other current liabilities showed a volatile pattern, peaking in 2022 before a sharp decrease in 2023.
Long-Term Liabilities: The total long-term liabilities rose from US$3,283,000 thousand in 2019, peaking at US$3,710,100 thousand in 2022, before declining to US$3,231,000 thousand in 2023. Long-term debt, excluding current portion, remained relatively stable but dipped significantly in 2023. Other long-term liabilities progressively increased, indicating potential expansions or long-term commitments. Deferred tax liabilities steadily decreased until 2022 but experienced a slight uptick in 2023.
Total Liabilities: Total liabilities were relatively stable between 2019 and 2021 but surged in 2022 by approximately 15%, followed by a decline in 2023. This reflects the combined effects of the changes observed in current and long-term liabilities.
Stockholders’ Equity: Stockholders’ equity consistently increased each year, more than doubling from US$3,324,100 thousand in 2019 to US$7,800,600 thousand in 2023. This growth was driven primarily by substantial increases in accumulated earnings and additional paid-in capital. Treasury stock at cost increased negatively, indicating higher repurchases of shares over time, which may impact overall equity value. Accumulated other comprehensive loss showed some volatility but remained negative throughout the period.
Total Assets (Implied): Given the increase in total liabilities and stockholders’ equity, total assets also rose significantly, indicating growth in the company’s asset base from US$8,425,500 thousand in 2019 to US$13,215,200 thousand in 2023.
Notable Specific Items: The “Amount due to EFK seller” appears only in 2022 with a value of US$236,300 thousand, indicating a specific one-time liability that year. The current portion of long-term debt showed a sharp dip in 2021 and 2022, but a significant increase in 2023, suggesting possible refinancing or changes in debt maturity profiles. Financing lease liabilities appeared from 2021 onwards, gradually rising, which may reflect changes in lease accounting or new lease agreements.

Overall, the data points to a company experiencing growth in equity and total assets, with some volatility in liabilities related to current debt and lease obligations. The significant increase in accumulated earnings enhances the financial strength, although increased treasury stock implies active share buyback programs. The fluctuations in liabilities highlight ongoing adjustments in the company’s financing and operational structure.

Download chart

ON Semiconductor Corp. (NASDAQ:ON)

Balance Sheet: Liabilities and Stockholders’ Equity