Net Profit Margin
since 2005
Calculation
ON Semiconductor Corp., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income (loss) attributable to ON Semiconductor Corporation1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 26.46% | = | 100 | × | 2,183,700) | ÷ | 8,253,000) |
| Dec 31, 2022 | 22.85% | = | 100 | × | 1,902,200) | ÷ | 8,326,200) |
| Dec 31, 2021 | 14.98% | = | 100 | × | 1,009,600) | ÷ | 6,739,800) |
| Dec 31, 2020 | 4.46% | = | 100 | × | 234,200) | ÷ | 5,255,000) |
| Dec 31, 2019 | 3.84% | = | 100 | × | 211,700) | ÷ | 5,517,900) |
| Dec 31, 2018 | 10.67% | = | 100 | × | 627,400) | ÷ | 5,878,300) |
| Dec 31, 2017 | 14.63% | = | 100 | × | 810,700) | ÷ | 5,543,100) |
| Dec 31, 2016 | 4.66% | = | 100 | × | 182,100) | ÷ | 3,906,900) |
| Dec 31, 2015 | 5.90% | = | 100 | × | 206,200) | ÷ | 3,495,800) |
| Dec 31, 2014 | 6.00% | = | 100 | × | 189,700) | ÷ | 3,161,800) |
| Dec 31, 2013 | 5.42% | = | 100 | × | 150,800) | ÷ | 2,782,700) |
| Dec 31, 2012 | -3.13% | = | 100 | × | (90,600) | ÷ | 2,894,900) |
| Dec 31, 2011 | 0.34% | = | 100 | × | 11,600) | ÷ | 3,442,300) |
| Dec 31, 2010 | 12.56% | = | 100 | × | 290,500) | ÷ | 2,313,400) |
| Dec 31, 2009 | 3.45% | = | 100 | × | 61,000) | ÷ | 1,768,900) |
| Dec 31, 2008 | -18.50% | = | 100 | × | (380,100) | ÷ | 2,054,800) |
| Dec 31, 2007 | 15.46% | = | 100 | × | 242,200) | ÷ | 1,566,200) |
| Dec 31, 2006 | 17.76% | = | 100 | × | 272,100) | ÷ | 1,531,800) |
| Dec 31, 2005 | 7.98% | = | 100 | × | 100,600) | ÷ | 1,260,600) |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The financial performance from 2005 to 2023 is characterized by three distinct phases: a period of high volatility and instability, a phase of low-margin consolidation, and a recent trajectory of aggressive profitability expansion.
- Initial Volatility and Periodic Losses (2005–2012)
- The early period was marked by significant fluctuations in the net profit margin. While margins peaked at 17.76% in 2006, the company experienced two major contractions resulting in net losses. The most severe decline occurred in 2008, where the net profit margin dropped to -18.50%, corresponding to a net loss of approximately 380 million USD. A second, less severe loss occurred in 2012 with a margin of -3.13%.
- Margin Consolidation and Stability (2013–2016)
- Following the 2012 loss, the company entered a phase of relative stability but lower profitability. Between 2013 and 2016, net profit margins remained within a narrow band, ranging from a low of 4.66% to a high of 6.00%. During this time, revenue grew steadily from approximately 2.78 billion USD to 3.91 billion USD, yet the net profit margin did not scale proportionally with the increase in top-line growth.
- Profitability Acceleration and Scaling (2017–2023)
- A significant structural shift in profitability is observable starting in 2017, where the margin jumped to 14.63%. After a brief period of moderation between 2018 and 2020, a strong upward trend emerged from 2021 onwards. The net profit margin climbed from 14.98% in 2021 to a historical peak of 26.46% by the end of 2023. This growth is supported by a substantial increase in net income, which rose from 234.2 million USD in 2020 to 2.18 billion USD in 2023.
The correlation between increasing revenue and rapidly expanding margins in the final three years of the analysis suggests a significant improvement in operational efficiency or a transition toward higher-margin product offerings. The transition from volatile, single-digit margins to a consistent double-digit margin profile indicates a strengthened competitive position and improved cost management over the long term.
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Comparison to Competitors
ON Semiconductor Corp., net profit margin, long-term trends, comparison to competitors
| ON Semiconductor Corp. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 26.46% | 3.77% | 26.94% | 25.86% | 39.31% | 3.11% | 32.27% | 25.88% | -2.76% | -37.54% | 16.19% | 20.19% | 37.16% |
| Dec 31, 2022 | 22.85% | 5.59% | 22.88% | 25.31% | 34.62% | 12.71% | 36.06% | 26.73% | -9.44% | 28.24% | 36.23% | 29.27% | 43.68% |
| Dec 31, 2021 | 14.98% | 19.24% | 19.00% | 25.53% | 24.54% | 25.14% | 30.04% | 26.72% | -9.34% | 21.16% | 25.98% | 26.94% | 42.35% |
| Dec 31, 2020 | 4.46% | 25.50% | 21.79% | 21.04% | 12.39% | 26.84% | 20.96% | 22.42% | 58.70% | 12.54% | 25.61% | 22.09% | 38.69% |
| Dec 31, 2019 | 3.84% | 5.07% | 22.75% | 18.52% | 12.05% | 29.25% | 25.73% | 22.70% | -6.25% | 26.97% | 35.34% | 18.07% | 34.88% |
| Dec 31, 2018 | 10.67% | 5.20% | 24.12% | 19.20% | 58.80% | 29.72% | 19.87% | 21.49% | 21.62% | 46.51% | 31.37% | -21.40% | 35.35% |
| Dec 31, 2017 | 14.63% | 0.81% | 14.24% | 23.62% | 9.59% | 15.30% | 26.61% | 21.19% | 0.91% | 25.04% | 24.11% | 11.06% | 24.61% |
| Dec 31, 2016 | 4.66% | -11.63% | 25.18% | 15.90% | -13.13% | 17.37% | 23.60% | 15.53% | -29.77% | -2.23% | 12.26% | 24.22% | 26.89% |
| Dec 31, 2015 | 5.90% | -16.54% | 20.29% | 14.26% | 19.99% | 20.63% | 13.01% | 12.47% | 11.74% | 17.90% | 13.47% | 20.85% | 22.97% |
| Dec 31, 2014 | 6.00% | -7.32% | 21.97% | 11.82% | 6.16% | 20.95% | 19.89% | 13.72% | 9.26% | 18.61% | 10.65% | 30.08% | 21.63% |
| Dec 31, 2013 | 5.42% | -1.57% | 25.57% | 3.41% | 21.90% | 18.25% | 19.11% | 3.16% | 9.68% | 13.12% | 13.14% | 27.56% | 17.71% |
| Dec 31, 2012 | -3.13% | -21.82% | 24.11% | 1.25% | 23.82% | 20.63% | 23.83% | 6.33% | 18.13% | -12.53% | 14.53% | 31.95% | 13.72% |
| Dec 31, 2011 | 0.34% | 7.48% | 28.98% | 18.31% | 23.63% | 23.97% | 25.02% | 22.35% | 25.03% | 1.90% | 7.14% | 28.48% | 16.28% |
| Dec 31, 2010 | 12.56% | 7.25% | 25.79% | 9.82% | 19.83% | 26.28% | 11.66% | 16.25% | 12.59% | 21.81% | -2.04% | 29.54% | 23.11% |
| Dec 31, 2009 | 3.45% | 5.63% | 12.30% | -6.09% | -2.96% | 12.44% | -34.43% | -27.08% | 4.99% | -38.21% | -0.88% | 15.28% | 14.10% |
| Dec 31, 2008 | -18.50% | -53.34% | 30.44% | 11.82% | — | 14.08% | 14.24% | 17.75% | -3.95% | -27.72% | 19.46% | 28.36% | 15.36% |
| Dec 31, 2007 | 15.46% | -56.19% | 19.52% | 17.57% | — | 18.20% | 19.34% | 26.72% | -0.54% | -5.63% | 14.63% | 37.23% | 19.20% |
| Dec 31, 2006 | 17.76% | -2.94% | 21.35% | 16.54% | — | 14.26% | 18.37% | 20.45% | 19.84% | 7.74% | 12.74% | 32.82% | 30.45% |
| Dec 31, 2005 | 7.98% | 2.83% | 17.36% | 17.30% | — | 22.31% | 22.38% | 19.92% | 11.57% | 3.85% | 4.99% | 37.78% | 17.35% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
ON Semiconductor Corp., net profit margin, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| ON Semiconductor Corp. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2023 | 26.46% | 16.64% |
| Dec 31, 2022 | 22.85% | 25.04% |
| Dec 31, 2021 | 14.98% | 25.45% |
| Dec 31, 2020 | 4.46% | 23.53% |
| Dec 31, 2019 | 3.84% | 24.08% |
| Dec 31, 2018 | 10.67% | 27.58% |
| Dec 31, 2017 | 14.63% | 16.90% |
| Dec 31, 2016 | 4.66% | 13.44% |
| Dec 31, 2015 | 5.90% | 18.27% |
| Dec 31, 2014 | 6.00% | 19.57% |
| Dec 31, 2013 | 5.42% | 17.41% |
| Dec 31, 2012 | -3.13% | 15.96% |
| Dec 31, 2011 | 0.34% | 20.49% |
| Dec 31, 2010 | 12.56% | 21.44% |
| Dec 31, 2009 | 3.45% | 6.08% |
| Dec 31, 2008 | -18.50% | 9.29% |
| Dec 31, 2007 | 15.46% | 13.69% |
| Dec 31, 2006 | 17.76% | 17.71% |
| Dec 31, 2005 | 7.98% | 19.00% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
Comparison to Industry (Information Technology)
ON Semiconductor Corp., net profit margin, long-term trends, comparison to industry (information technology)
| ON Semiconductor Corp. | Information Technology | |
|---|---|---|
| Dec 31, 2023 | 26.46% | 20.24% |
| Dec 31, 2022 | 22.85% | 22.27% |
| Dec 31, 2021 | 14.98% | 23.48% |
| Dec 31, 2020 | 4.46% | 19.76% |
| Dec 31, 2019 | 3.84% | 19.73% |
| Dec 31, 2018 | 10.67% | 18.59% |
| Dec 31, 2017 | 14.63% | 17.77% |
| Dec 31, 2016 | 4.66% | 17.58% |
| Dec 31, 2015 | 5.90% | 18.32% |
| Dec 31, 2014 | 6.00% | 19.33% |
| Dec 31, 2013 | 5.42% | 20.15% |
| Dec 31, 2012 | -3.13% | 20.07% |
| Dec 31, 2011 | 0.34% | 20.71% |
| Dec 31, 2010 | 12.56% | 20.19% |
| Dec 31, 2009 | 3.45% | 14.45% |
| Dec 31, 2008 | -18.50% | 15.07% |
| Dec 31, 2007 | 15.46% | 15.71% |
| Dec 31, 2006 | 17.76% | 16.26% |
| Dec 31, 2005 | 7.98% | 16.64% |
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), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).