ON Semiconductor Corp. (NASDAQ:ON)

This financial data reveals significant fluctuations and trends in revenue, operating income, and net income over the period from 2005 to 2023.

Revenue

The revenue shows an overall upward trend with some volatility. From 2005 to 2008, revenue increased substantially, peaking in 2008 at 2,054,800 thousand US dollars before declining in 2009. A notable recovery and growth phase occurred from 2010 onwards, reaching a high of 8,326,200 thousand US dollars in 2022. The slight decrease observed in 2023 to 8,253,000 thousand US dollars indicates a minor pullback but revenue remains near all-time highs. The overall growth reflects a long-term positive trajectory despite cyclical dips.

Operating Income (Loss)

Operating income displays considerable volatility with periods of both profitability and loss. Early years (2005-2007) showed consistent profitability, peaking in 2006 at 317,000 thousand US dollars. The company suffered a significant operating loss in 2008 (-365,900 thousand US dollars), coinciding with the global financial crisis. After recovery in 2009 and a mixed performance through 2012, operating income grew considerably from 2013 onward with a notable peak at 2,360,000 thousand US dollars in 2022. This pattern highlights sensitivity to external economic conditions and a marked improvement in operational efficiency and profitability in more recent years.

Net Income (Loss) Attributable to ON Semiconductor Corporation

Net income trends mirror operating income with some variations. The data shows positive net income from 2005 to 2007, followed by a severe loss in 2008 (-380,100 thousand US dollars). Recovery is evident from 2009, with net income generally rising albeit unevenly. Particularly strong net income figures appear in 2017 (810,700 thousand US dollars) and 2022 (1,902,200 thousand US dollars) followed by a further increase in 2023 to 2,183,700 thousand US dollars, underscoring growing profitability. This upward trend suggests effective cost management and revenue growth contributing to enhanced shareholder value.

The financial data reveals notable trends in both current assets and total assets over the analyzed period from 2005 to 2023.

Current Assets Trend

There is a general upward trajectory in current assets, increasing from approximately 600 million USD in 2005 to nearly 5.9 billion USD by the end of 2023. Notable growth phases include a sharp increase from 2015 (around 1.9 billion USD) to 2016 (approximately 2.9 billion USD), followed by steady increments each year thereafter. A significant surge occurred between 2021 and 2022, as current assets rose from approximately 3.8 billion USD to nearly 5.7 billion USD, maintaining a high level into 2023.

Total Assets Trend

Total assets have likewise exhibited a consistent increase over the period. Initially recorded at roughly 1.1 billion USD in 2005, total assets increased steadily with some fluctuations, particularly evident around 2012 and 2013 where a slight decrease took place. However, from 2014 onward, total assets expanded markedly, escalating from 3.8 billion USD to over 13.2 billion USD by 2023. The most pronounced growth occurred post-2015, with assets nearly doubling within eight years, including a sharp rise between 2021 and 2022.

Comparative Analysis

While both current assets and total assets have grown substantially, total assets have consistently remained approximately two to three times higher than current assets throughout the period. The rapid increases observed after 2015 in both categories may indicate strategic expansion, investments, or acquisitions contributing to asset base growth. Additionally, the significant asset growth in recent years suggests improved capacity or capital resources, potentially positioning the entity for increased operational scale or market activities.

Insights

The steady increase in both current and total assets over the analyzed period suggests a strengthening financial position. The substantial rise in current assets toward the latter years may enhance liquidity and short-term financial flexibility. The overall asset growth trajectory points to an expanding balance sheet, which could reflect underlying business growth or asset revaluation trends.

The financial data reveals several notable trends across the examined periods. Current liabilities have exhibited a general rising trend, increasing from approximately $398 million at the end of 2005 to around $2.18 billion by the end of 2023, despite some fluctuations. This steady increase, especially significant after 2010, indicates a growing short-term obligation load over time.

Total liabilities similarly demonstrate an upward trajectory, rising from about $1.42 billion in 2005 to roughly $5.41 billion in 2023. The data shows a significant jump particularly between 2015 and 2016, where liabilities more than doubled from $2.24 billion to over $5 billion, followed by a relatively stable high-level plateau with modest variation thereafter. This sharp increase could imply a strategic expansion financed through debt or other liabilities.

Long-term debt and financing lease liabilities, including current portions, generally follow a pattern consistent with total liabilities but with some variation. From around $1.07 billion in 2005, this figure dropped slightly until 2010, then increased substantially to over $3.59 billion in 2015, before stabilizing around $3.2 to $3.3 billion by 2023. The peak around 2015 corresponds with the surge in total liabilities, indicating that long-term debt is a major component of total liabilities and that the company undertook significant borrowing during this period.

Stockholders’ equity shows a remarkable recovery trend. It transitioned from a negative equity position of approximately -$300 million in 2005 to positive equity by 2007, increasing steadily thereafter. This positive momentum continues through the years, reaching about $7.78 billion in 2023. The consistent growth in equity reflects retained earnings, capital injections, or overall improvements in asset valuation, contributing to a stronger financial position and buffer against liabilities.

In summary, the company has experienced considerable growth in both liabilities and equity over the analyzed period. The substantial increase in liabilities, especially long-term debt, suggests aggressive financing strategies, potentially to support growth initiatives or acquisitions. Simultaneously, the significant rise in stockholders’ equity demonstrates an improvement in net asset value and financial stability over time. Managing the balance between increased liabilities and growing equity appears crucial for the company's ongoing financial health.

The analysis of the cash flow activities over the examined periods reveals notable trends and fluctuations across operating, investing, and financing activities.

Operating Activities

Net cash provided by operating activities shows an overall upward trend with some fluctuations. Starting from approximately 193.1 million USD in 2005, the figure increased substantially, reaching a peak of about 2.63 billion USD in 2021. Despite minor declines in certain years, particularly in 2015 and 2019, the operating cash flow generally strengthened over time, indicating improved core business cash generation.

Investing Activities

The net cash used in investing activities predominantly reflects negative values, indicating cash outflows. Only in 2005, 2008, and a few isolated periods positive cash flows appeared, likely from asset sales or other investments. Notably, significant cash outflows occurred from 2016 to 2023, especially large in 2016 (-2.43 billion USD) and 2023 (-1.74 billion USD), suggesting substantial investments in capital expenditures, acquisitions, or other long-term assets. This pattern indicates a significant reinvestment into the company’s business despite the negative cash flow from investing activities.

Financing Activities

Cash flows from financing activities exhibit high volatility. There were extended periods of negative cash flow, such as from 2005 to 2012, implying net repayments or dividend payments exceeding funds raised. However, significant positive financing cash flows were observed in 2016 (approximately 2.26 billion USD) and 2019 (623.1 million USD), indicating influxes of capital, possibly from debt issuance or equity financing. Following these peaks, financing cash flow again turned negative, reflecting repayments or distributions.

In summary, the company demonstrated consistent growth in operating cash flows, showing improved operational efficiency or profitability. However, the investing activities required substantial cash outflows, highlighting considerable reinvestment or expansion efforts. Financing activities fluctuated widely, reflecting dynamic capital structure management, with periods of capital inflow alternating with repayments or distributions. Overall, the cash flow patterns suggest a strategic balance between growth investment and financial structuring supported by increasingly strong operating cash generation.

Basic Earnings per Share (EPS)

The basic EPS demonstrates notable volatility over the analyzed period. Initially, there is a significant increase from $0.24 in 2005 to $0.85 in 2006, followed by relative stability through 2007. A sharp decline occurs in 2008 with a negative EPS of -$1.00, indicating a loss during that fiscal year. Subsequent years show fluctuations with low or negative values until 2012. From 2013 onward, basic EPS exhibits a generally upward trajectory. Notably, a substantial increase is observed starting in 2017, peaking at $5.07 in 2023, which signifies a strong recovery and improved profitability in recent years.

Diluted Earnings per Share (EPS)

The diluted EPS mirrors the pattern of basic EPS closely, maintaining similar trends of growth, decline, and recovery. Initial growth from 2005 to 2006 is followed by a loss in 2008. The diluted EPS remains relatively low and volatile through 2012. From 2013, it ascends steadily, with marked improvement noted from 2017 onwards. The highest value is reached in 2023 at $4.89, slightly below the basic EPS but indicating consistent earnings growth and limited dilution effect on shareholders’ earnings.

Dividend per Share

No dividend payments are reported throughout the entire period. This absence suggests either a strategic decision to reinvest earnings into the company, cash conservation measures, or other priorities over returning capital directly to shareholders.