Operating Profit Margin
since 2005
Calculation
ON Semiconductor Corp., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income (loss)1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 30.76% | = | 100 | × | 2,538,700) | ÷ | 8,253,000) |
| Dec 31, 2022 | 28.34% | = | 100 | × | 2,360,000) | ÷ | 8,326,200) |
| Dec 31, 2021 | 19.10% | = | 100 | × | 1,287,600) | ÷ | 6,739,800) |
| Dec 31, 2020 | 6.64% | = | 100 | × | 348,700) | ÷ | 5,255,000) |
| Dec 31, 2019 | 7.84% | = | 100 | × | 432,700) | ÷ | 5,517,900) |
| Dec 31, 2018 | 14.41% | = | 100 | × | 847,200) | ÷ | 5,878,300) |
| Dec 31, 2017 | 12.28% | = | 100 | × | 680,900) | ÷ | 5,543,100) |
| Dec 31, 2016 | 6.04% | = | 100 | × | 236,100) | ÷ | 3,906,900) |
| Dec 31, 2015 | 7.47% | = | 100 | × | 261,100) | ÷ | 3,495,800) |
| Dec 31, 2014 | 7.24% | = | 100 | × | 228,900) | ÷ | 3,161,800) |
| Dec 31, 2013 | 7.84% | = | 100 | × | 218,200) | ÷ | 2,782,700) |
| Dec 31, 2012 | -0.56% | = | 100 | × | (16,300) | ÷ | 2,894,900) |
| Dec 31, 2011 | 3.29% | = | 100 | × | 113,400) | ÷ | 3,442,300) |
| Dec 31, 2010 | 16.18% | = | 100 | × | 374,200) | ÷ | 2,313,400) |
| Dec 31, 2009 | 8.06% | = | 100 | × | 142,600) | ÷ | 1,768,900) |
| Dec 31, 2008 | -17.81% | = | 100 | × | (365,900) | ÷ | 2,054,800) |
| Dec 31, 2007 | 17.70% | = | 100 | × | 277,200) | ÷ | 1,566,200) |
| Dec 31, 2006 | 20.69% | = | 100 | × | 317,000) | ÷ | 1,531,800) |
| Dec 31, 2005 | 13.30% | = | 100 | × | 167,600) | ÷ | 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 operating profit margin exhibits three distinct phases over the analyzed period: a period of volatility and severe contraction, a subsequent phase of stabilization at lower levels, and a recent trend of significant expansion.
- Period of Volatility and Contraction (2005–2012)
- Operational efficiency began at a margin of 13.30% in 2005, peaking at 20.69% in 2006. A severe downturn occurred in 2008, where the operating margin plummeted to -17.81%, resulting in an operating loss of $365.9 million despite an increase in revenue to $2.05 billion. While a recovery was observed in 2010 with a margin of 16.18%, the period concluded with another dip into negative territory in 2012 at -0.56%, reflecting significant instability in operating profitability.
- Stabilization and Moderate Recovery (2013–2020)
- Between 2013 and 2016, operating margins remained constrained, fluctuating in a narrow range between 6.04% and 7.84%. A period of improvement followed in 2017 and 2018, with margins climbing to 12.28% and 14.41%, respectively. This momentum was interrupted in 2019 and 2020, during which the margin contracted back to 7.84% and 6.64%, suggesting a struggle to maintain higher profitability levels during this timeframe.
- Accelerated Profitability Expansion (2021–2023)
- The most recent three-year interval is characterized by a sharp and consistent increase in operational efficiency. The operating profit margin rose from 19.10% in 2021 to 28.34% in 2022, reaching a peak of 30.76% by December 31, 2023. This trend is supported by substantial growth in absolute operating income, which increased from $1.29 billion in 2021 to $2.54 billion in 2023, indicating that revenue growth was accompanied by significant cost optimization or enhanced pricing power.
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Comparison to Competitors
ON Semiconductor Corp., operating 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. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2023 | 30.76% | 1.77% | 31.07% | 28.86% | 45.25% | 0.17% | 29.69% | 4.02% | -36.97% | 15.66% | 21.74% | 41.85% |
| Dec 31, 2022 | 28.34% | 5.36% | 27.29% | 30.20% | 42.84% | 3.70% | 31.24% | -7.79% | 31.54% | 37.31% | 35.88% | 50.63% |
| Dec 31, 2021 | 19.10% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | -8.70% | 22.68% | 27.18% | 29.16% | 48.84% |
| Dec 31, 2020 | 6.64% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | -9.02% | 14.01% | 26.07% | 26.58% | 40.76% |
| Dec 31, 2019 | 7.84% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 1.51% | 31.51% | 32.47% | 31.59% | 39.79% |
| Dec 31, 2018 | 14.41% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 17.84% | 49.34% | 33.05% | 3.26% | 42.53% |
| Dec 31, 2017 | 12.28% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 4.31% | 28.88% | 27.99% | 11.73% | 40.66% |
| Dec 31, 2016 | 6.04% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | -29.96% | 1.35% | 14.91% | 27.57% | 35.89% |
| Dec 31, 2015 | 7.47% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 11.03% | 18.52% | 16.21% | 22.85% | 32.88% |
| Dec 31, 2014 | 7.24% | -2.82% | 26.27% | 16.75% | 10.26% | 27.47% | 14.71% | 8.24% | 18.87% | 12.01% | 28.50% | 30.26% |
| Dec 31, 2013 | 7.84% | 1.94% | 28.59% | 5.75% | 21.90% | 23.32% | 3.28% | 9.30% | 2.60% | 15.15% | 29.08% | 23.20% |
| Dec 31, 2012 | -0.56% | -19.48% | 30.51% | 4.71% | 24.62% | 27.44% | 8.92% | 17.81% | -7.51% | 16.22% | 29.72% | 15.38% |
| Dec 31, 2011 | 3.29% | 5.60% | 35.81% | 22.80% | 25.00% | 32.37% | 24.84% | 24.95% | 8.59% | 7.22% | 33.60% | 21.78% |
| Dec 31, 2010 | 16.18% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 11.90% | 18.73% | -2.97% | 29.87% | 32.32% |
| Dec 31, 2009 | 8.06% | 12.29% | 14.14% | -7.85% | 3.23% | 16.26% | -25.20% | 5.60% | -34.87% | -2.06% | 21.37% | 19.09% |
| Dec 31, 2008 | -17.81% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -3.65% | -27.31% | 20.41% | 33.48% | 19.49% |
| Dec 31, 2007 | 17.70% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | 0.05% | -4.92% | 14.78% | 32.50% | 25.28% |
| Dec 31, 2006 | 20.69% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 21.54% | 6.64% | 14.32% | 35.74% | 23.62% |
| Dec 31, 2005 | 13.30% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 13.22% | 4.46% | 5.65% | 42.06% | 20.84% |
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), 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).