Analysis of Geographic Areas
ON Semiconductor Corp. operates in 2 regions: United States and Other.
Paying user area
Try for free
ON Semiconductor Corp. pages available for free this week:
- Balance Sheet: Liabilities and Stockholders’ Equity
- Common-Size Income Statement
- Analysis of Profitability Ratios
- Analysis of Liquidity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Current Ratio since 2005
- Price to Earnings (P/E) since 2005
The data is hidden behind: . Unhide it.
Get full access to the entire website from $10.42/mo, or
get 1-month access to ON Semiconductor Corp. for $22.49.
This is a one-time payment. There is no automatic renewal.
We accept:
Area Asset Turnover
ON Semiconductor Corp., asset turnover by geographic area
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | |||||
| Other |
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).
- United States Asset Turnover
- The asset turnover ratio for the United States exhibited a declining trend from 1.31 in 2019 to 1.06 in 2020, indicating a reduction in the efficiency of asset use during that period. This was followed by a partial recovery to 1.21 in 2021. However, the ratio declined again in subsequent years, registering 1.10 in 2022 and slightly dropping further to 1.08 in 2023. Overall, the U.S. asset turnover ratio showed a downward movement with some fluctuations, suggesting consistent challenges in maintaining or improving asset use efficiency in that region across the five-year span.
- Other Geographic Areas Asset Turnover
- For the category labeled "Other," the asset turnover ratio demonstrated an overall upward trend from 2.38 in 2019 to a peak of 3.31 in 2021. This indicates significant improvement in asset utilization efficiency outside the United States during the initial years. However, from 2021 onward, there was a decline to 3.23 in 2022 and a more marked drop to 2.27 in 2023. Despite the recent decreases, the turnover ratios in these other areas remain above the 2019 level, reflecting generally stronger asset efficiency compared to the domestic segment over the observation period.
- Comparative Insights
- Comparing the two geographic categories, the "Other" regions consistently maintained higher asset turnover ratios than the United States across all years. The "Other" category also displayed greater volatility, with sharper increases and decreases, while the United States figures were more stable but on a declining trajectory. This contrast may signal differing market dynamics, operational efficiencies, or capital deployment strategies between the domestic and international operations.
Area Asset Turnover: United States
ON Semiconductor Corp.; United States; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2023 Calculation
Area asset turnover = Revenue ÷ Property, plant and equipment, net
= ÷ =
- Revenue Trends
- Revenue demonstrated a fluctuating yet overall upward trajectory over the five-year period. Initially, revenue decreased from 810.3 million USD in 2019 to 728.6 million USD in 2020, indicating a contraction during that year. Subsequently, there was a significant increase to 931.6 million USD in 2021, followed by a sharp rise in 2022 reaching 1.4647 billion USD. The growth continued, albeit more moderately, to 1.5737 billion USD in 2023. This pattern suggests a recovery and substantial expansion after 2020.
- Property, Plant, and Equipment (PP&E) Net
- The net value of property, plant, and equipment showed a consistent increase each year. Starting at 616.7 million USD in 2019, it rose steadily to 686.6 million USD in 2020 and 767.1 million USD in 2021. A notable acceleration occurred in 2022, with the net PP&E nearly doubling from the previous year to 1.3292 billion USD, continuing to grow to 1.4565 billion USD in 2023. This indicates significant capital investment or asset accumulation, especially between 2021 and 2022.
- Area Asset Turnover Ratio
- The area asset turnover ratio, which measures how efficiently the company utilizes its assets to generate revenue, exhibited a declining trend overall. Starting at 1.31 in 2019, the ratio dropped to 1.06 in 2020, recovered somewhat to 1.21 in 2021, but then decreased again to 1.10 in 2022 and slightly further to 1.08 in 2023. This suggests that, despite growth in revenue and assets, the efficiency in asset utilization declined over time, particularly after 2021.
- Summary of Observations
- The data reflect a complex dynamic between revenue growth and asset expansion in the United States geographic segment. The initial drop in revenue from 2019 to 2020 was followed by a strong recovery and continuation of growth through 2023. Concurrently, there was consistent and escalating investment in property, plant and equipment, especially marked in 2022. However, the decreasing area asset turnover ratio suggests that while asset base expanded significantly, the corresponding revenue generation per unit of asset decreased, implying potential challenges in operational efficiency or asset underutilization during the later period.
Area Asset Turnover: Other
ON Semiconductor Corp.; Other; area asset turnover calculation
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | |||||
| Property, plant and equipment, net | |||||
| Area Activity Ratio | |||||
| Area asset turnover1 | |||||
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).
1 2023 Calculation
Area asset turnover = Revenue ÷ Property, plant and equipment, net
= ÷ =
- Revenue Trends
- The revenue in the "Other" geographic area experienced fluctuations during the analyzed period. Starting at $4,707,600 thousand in 2019, there was a decline to $4,526,400 thousand in 2020. Subsequently, revenue increased significantly in 2021 and 2022, reaching a peak of $6,861,500 thousand in 2022 before slightly decreasing to $6,679,300 thousand in 2023. Overall, revenue showed positive growth from 2019 to 2023, despite the temporary drop in 2020.
- Property, Plant, and Equipment (PP&E) Trends
- The net value of property, plant, and equipment demonstrated a general upward trend over the years. Starting from $1,974,900 thousand in 2019, it declined to $1,825,700 thousand in 2020 and further decreased to $1,757,200 thousand in 2021. However, there was a strong recovery in 2022, with the value rising to $2,121,500 thousand, and an even more substantial increase in 2023, reaching $2,945,000 thousand. This indicates significant investment or acquisition in fixed assets during the last two years.
- Area Asset Turnover Ratio
- The area asset turnover ratio, reflecting the efficiency in utilizing assets to generate revenue, showed variable patterns. It started at 2.38 in 2019, slightly increased to 2.48 in 2020, and then rose sharply to 3.31 in 2021, indicating improved asset utilization efficiency. In 2022, the ratio slightly decreased to 3.23 but remained high relative to earlier years. By 2023, the ratio dropped significantly to 2.27, suggesting a decline in asset turnover efficiency compared to previous years. The decrease in 2023 could be related to the substantial increase in PP&E, which may not have proportionally translated into revenue growth.
- Summary of Insights
- The financial data reveals a complex interplay between revenue growth, asset investment, and operational efficiency within the "Other" geographic area. While revenue generally grew over the five-year span, the temporary dip in 2020 may reflect external challenges. Investment in property, plant, and equipment was substantial in the later years, particularly 2022 and 2023, indicating a strategic focus on expanding or upgrading fixed assets. Nevertheless, the declining asset turnover ratio in 2023 signals that the increase in asset base did not correspond to proportional revenue growth, highlighting potential inefficiencies or a lag in realizing returns from new assets. Continuous monitoring of asset utilization and revenue generation will be critical for optimizing operational performance in this geographic segment.
Revenue
ON Semiconductor Corp., revenue by geographic area
US$ in thousands
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | |||||
| Other | |||||
| Total |
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).
- Revenue Trends in the United States
- The revenue from the United States shows an overall upward trend over the five-year period. It decreased slightly from 810,300 thousand US dollars in 2019 to 728,600 thousand in 2020, followed by a significant increase to 931,600 thousand in 2021. The growth accelerated further in 2022, reaching 1,464,700 thousand, and continued to rise to 1,573,700 thousand in 2023. This represents a substantial increase in revenue from the U.S. market, especially notable in the last two years of the period examined.
- Revenue Trends in Other Geographic Areas
- The revenue classified under "Other" geographic areas remained relatively stable with some fluctuations. It decreased marginally from 4,707,600 thousand in 2019 to 4,526,400 thousand in 2020, then increased to 5,808,200 thousand in 2021. The revenue growth continued into 2022, reaching 6,861,500 thousand, but then declined slightly to 6,679,300 thousand in 2023. Despite the small decrease in the last year, the overall trend is upward from 2019 to 2023.
- Total Revenue Analysis
- The total revenue exhibited variability with an overall increase during the period observed. There was a decline from 5,517,900 thousand in 2019 to 5,255,000 thousand in 2020. Subsequently, total revenue increased significantly to 6,739,800 thousand in 2021, further rising to a peak of 8,326,200 thousand in 2022. However, a minor decrease occurred in 2023, with total revenue reported at 8,253,000 thousand. The total revenue trend indicates strong growth particularly in the last three years, despite a slight dip in the final year.
- Summary of Geographic Revenue Patterns
- The United States market demonstrated robust growth after a slight dip in 2020, showing accelerated gains in the last two years. Revenue from other geographic areas also increased overall with some volatility, particularly a slight downturn in 2023 after a peak in 2022. Total revenues reflect these combined movements, indicating strong recovery and growth post-2020, with a minor retraction in the most recent year.
Property, plant and equipment, net
ON Semiconductor Corp., property, plant and equipment, net by geographic area
US$ in thousands
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| United States | |||||
| Other | |||||
| Total |
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 property, plant, and equipment, net data for the geographic areas under consideration reveal distinct trends over the five-year period ending December 31, 2023.
- United States
- There is a steady increase in net property, plant, and equipment values. Starting at approximately $616.7 million in 2019, the figure rises gradually each year to reach $1.4565 billion by the end of 2023. Notable is the significant jump between 2021 and 2022, where the value increases from $767.1 million to $1.3292 billion, followed by continued growth into 2023.
- Other Geographic Areas
- This category experiences fluctuations with an overall upward trend. Beginning at $1.975 billion in 2019, the value declines slightly over the next two years to approximately $1.7572 billion in 2021. However, from 2021 onwards, the amount shows robust growth, increasing to $2.1215 billion in 2022 and surging further to $2.945 billion in 2023. The substantial increase in the last two years suggests expanded investment or asset acquisition in these regions.
- Total
- The aggregate net property, plant, and equipment values reflect the trends observed in the individual geographic categories. The total starts at about $2.5926 billion in 2019, exhibits a small decline to $2.5123 billion in 2020, and remains relatively flat through 2021. From 2021 to 2022, there is a marked increase to $3.4507 billion, which continues upward to $4.4015 billion by 2023. This substantial growth over the last two years indicates overall expansion and increased capital investment in property, plant, and equipment assets globally.