Stock Analysis on Net

ON Semiconductor Corp. (NASDAQ:ON)

$22.49

This company has been moved to the archive! The financial data has not been updated since April 29, 2024.

Analysis of Solvency Ratios

Microsoft Excel

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Solvency Ratios (Summary)

ON Semiconductor Corp., solvency ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Debt Ratios
Debt to equity
Debt to equity (including operating lease liability)
Debt to capital
Debt to capital (including operating lease liability)
Debt to assets
Debt to assets (including operating lease liability)
Financial leverage
Coverage Ratios
Interest coverage
Fixed charge coverage

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).


Debt Ratios
Over the observed period from 2019 to 2023, there is a clear downward trend in the debt-related ratios, indicating a gradual deleveraging of the company. The debt to equity ratio decreased significantly from 1.09 in 2019 to 0.43 in 2023, suggesting a consistent reduction in reliance on debt relative to shareholders' equity. This decline is mirrored in the debt to equity ratio including operating lease liabilities, which fell from 1.13 to 0.47.
Similarly, the debt to capital ratio, both excluding and including operating lease liabilities, showed a sustained decline from around 0.52 and 0.53 in 2019 to 0.30 and 0.32 in 2023 respectively. This points to a lower proportion of debt in the company's overall capital structure over time.
Debt to assets ratios also followed a decreasing pattern, dropping from 0.43 (0.44 including operating lease liabilities) in 2019 to 0.25 (0.27) in 2023, indicating that the company's assets are progressively less financed by debt.
Financial Leverage
The financial leverage ratio decreased from 2.55 in 2019 to 1.70 in 2023. This decline signals that the company has been reducing its use of financial leverage over the years, reflecting a stronger equity base relative to total assets. This trend aligns with the reductions observed in the debt ratios.
Interest and Fixed Charge Coverage
There is a notable improvement in the interest coverage ratio, which surged from 2.87 in 2019 to 34.9 in 2023. This significant increase indicates that the company’s earnings before interest and taxes have grown substantially relative to its interest expenses, enhancing its ability to meet interest obligations comfortably.
Similarly, fixed charge coverage improved markedly, rising from 2.46 in 2019 to 20.57 in 2023. This suggests a strengthened capacity to cover fixed financial obligations, which may include interest and lease payments, reflecting improved operational performance and financial stability.
Overall Analysis
The financial data reveal a consistent strengthening of the company's balance sheet from 2019 to 2023, characterized by a lower reliance on debt financing and enhanced ability to service financial obligations. The reductions across debt to equity, debt to capital, and debt to assets ratios, combined with improved coverage ratios, indicate improved financial health and reduced risk exposure. This trend may also reflect strategic efforts to deleverage and enhance profitability, contributing to increased investor confidence and operational flexibility.

Debt Ratios


Coverage Ratios


Debt to Equity

ON Semiconductor Corp., debt to equity calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current portion of financing lease liabilities
Current portion of long-term debt
Long-term debt, excluding current portion
Long-term financing lease liabilities
Total debt
 
Total ON Semiconductor Corporation stockholders’ equity
Solvency Ratio
Debt to equity1
Benchmarks
Debt to Equity, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Equity, Sector
Semiconductors & Semiconductor Equipment
Debt to Equity, Industry
Information Technology

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
Debt to equity = Total debt ÷ Total ON Semiconductor Corporation stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.


The financial data exhibits notable trends in debt, equity, and leverage ratios over the five-year period from 2019 to 2023.

Total Debt
The total debt decreased from 3,612,500 US$ thousands in 2019 to a low of 3,097,500 US$ thousands in 2021, indicating a reduction in financial liabilities. However, there was a modest increase thereafter, reaching 3,359,800 US$ thousands by the end of 2023. Overall, the trend depicts a slight net decrease in debt levels over the period, with some fluctuations.
Total Stockholders’ Equity
There was a consistent and significant increase in stockholders’ equity throughout the period, rising from 3,301,700 US$ thousands in 2019 to 7,782,600 US$ thousands in 2023. This growth reflects a substantial strengthening of the company’s equity base, more than doubling within five years.
Debt to Equity Ratio
The debt to equity ratio improved substantially, decreasing from 1.09 in 2019 to 0.43 in 2023. This downward trend signals a lower reliance on debt financing relative to equity and suggests an improvement in the company’s capital structure and financial stability. The ratio’s decline aligns with the growth in equity and the reduction or stabilization of debt levels.

Debt to Equity (including Operating Lease Liability)

ON Semiconductor Corp., debt to equity (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current portion of financing lease liabilities
Current portion of long-term debt
Long-term debt, excluding current portion
Long-term financing lease liabilities
Total debt
Operating lease liabilities (included in Accrued expenses and other current liabilities)
Operating lease liabilities (included in Other long-term liabilities)
Total debt (including operating lease liability)
 
Total ON Semiconductor Corporation stockholders’ equity
Solvency Ratio
Debt to equity (including operating lease liability)1
Benchmarks
Debt to Equity (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Equity (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment
Debt to Equity (including Operating Lease Liability), Industry
Information Technology

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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Total ON Semiconductor Corporation stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total Debt (including operating lease liability)
The total debt exhibits a downward trend from 2019 to 2021, decreasing from approximately 3,726.5 million US dollars in 2019 to 3,272.4 million in 2021. However, in the subsequent years, 2022 and 2023, the total debt slightly increases again, reaching 3,512.4 million and 3,623.8 million US dollars respectively. Despite the rise in the last two years, the overall debt level in 2023 remains below the 2019 amount.
Total Stockholders’ Equity
The stockholders' equity shows a consistent and significant upward trajectory throughout the entire period. Starting at 3,301.7 million US dollars in 2019, it increases each year, reaching 7,782.6 million US dollars by the end of 2023. This reflects a strong growth in the equity base of the company over five years, more than doubling from the initial figure.
Debt to Equity Ratio (including operating lease liability)
The debt to equity ratio declines steadily over the five-year period, moving from a high of 1.13 in 2019 to 0.47 in 2023. This decreasing ratio indicates an improvement in the company's financial leverage position. The ratio's decline reflects that the company is increasingly financed by equity rather than debt, due to both the reduction in debt levels and the growth of equity, with equity growth being the more pronounced factor.

Debt to Capital

ON Semiconductor Corp., debt to capital calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current portion of financing lease liabilities
Current portion of long-term debt
Long-term debt, excluding current portion
Long-term financing lease liabilities
Total debt
Total ON Semiconductor Corporation stockholders’ equity
Total capital
Solvency Ratio
Debt to capital1
Benchmarks
Debt to Capital, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Capital, Sector
Semiconductors & Semiconductor Equipment
Debt to Capital, Industry
Information Technology

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
Debt to capital = Total debt ÷ Total capital
= ÷ =

2 Click competitor name to see calculations.


Total Debt

The total debt showed a general declining trend from 2019 to 2021, decreasing from approximately $3.61 billion in 2019 to about $3.10 billion in 2021. However, this decline reversed in subsequent years, with debt increasing moderately to approximately $3.23 billion in 2022 and further to around $3.36 billion in 2023.

Total Capital

Total capital exhibited a consistent upward trend throughout the five-year period. Beginning at roughly $6.91 billion in 2019, total capital increased gradually to approximately $7.03 billion in 2020, then continued to grow more rapidly, reaching near $7.68 billion in 2021, $9.42 billion in 2022, and $11.14 billion in 2023. This reflects significant capital expansion, particularly in the last two years.

Debt to Capital Ratio

The debt to capital ratio declined steadily from 2019 through 2023, starting at 0.52 in 2019 and dropping to 0.5 in 2020, then further to 0.4 in 2021. The downward trend continued with the ratio decreasing to 0.34 in 2022 and reaching 0.3 by the end of 2023. This indicates a gradual reduction in the proportion of debt financing relative to total capital over this period.


Debt to Capital (including Operating Lease Liability)

ON Semiconductor Corp., debt to capital (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current portion of financing lease liabilities
Current portion of long-term debt
Long-term debt, excluding current portion
Long-term financing lease liabilities
Total debt
Operating lease liabilities (included in Accrued expenses and other current liabilities)
Operating lease liabilities (included in Other long-term liabilities)
Total debt (including operating lease liability)
Total ON Semiconductor Corporation stockholders’ equity
Total capital (including operating lease liability)
Solvency Ratio
Debt to capital (including operating lease liability)1
Benchmarks
Debt to Capital (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Capital (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment
Debt to Capital (including Operating Lease Liability), Industry
Information Technology

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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =

2 Click competitor name to see calculations.


Total Debt (including operating lease liability)
The total debt exhibited a decreasing trend from 2019 through 2021, descending from approximately $3.73 billion to $3.27 billion. However, a reversal occurred in the subsequent years, with debt rising to $3.51 billion in 2022 and further to $3.62 billion in 2023. This pattern suggests an initial effort to reduce leverage followed by renewed borrowing or assumed liabilities in the last two years.
Total Capital (including operating lease liability)
Total capital demonstrated consistent growth throughout the period under review. Starting at about $7.03 billion in 2019, total capital increased steadily each year, reaching approximately $11.41 billion by 2023. The most significant rises occurred in 2022 and 2023, indicating expansion possibly funded through equity or retained earnings alongside the operating lease liabilities.
Debt to Capital Ratio (including operating lease liability)
The debt to capital ratio showed a pronounced downward trend over the five-year span, declining from 0.53 in 2019 to 0.32 in 2023. This decreasing leverage ratio indicates an improving capital structure characterized by a reduction in reliance on debt relative to the total capital base. The drop is consistent with the observed growth in total capital outpacing the increases or stabilization in total debt.
Overall Analysis
The financial data indicates a strategic shift towards strengthening the capital base and reducing financial leverage over the period. Despite a modest increase in absolute total debt in the final two years, the substantial rise in total capital led to a continued reduction in the debt-to-capital ratio. This suggests improved financial stability and potentially greater capacity for investment or risk absorption. The trends signal prudent management of capital structure, prioritizing lower leverage while supporting growth.

Debt to Assets

ON Semiconductor Corp., debt to assets calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current portion of financing lease liabilities
Current portion of long-term debt
Long-term debt, excluding current portion
Long-term financing lease liabilities
Total debt
 
Total assets
Solvency Ratio
Debt to assets1
Benchmarks
Debt to Assets, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Assets, Sector
Semiconductors & Semiconductor Equipment
Debt to Assets, Industry
Information Technology

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
Debt to assets = Total debt ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Total debt
The total debt decreased from 3,612,500 thousand USD in 2019 to 3,097,500 thousand USD in 2021, indicating a reduction in liabilities during this period. However, it slightly increased afterward, reaching 3,359,800 thousand USD by the end of 2023. This reflects a moderate rise in debt levels in the last two years, albeit still below the 2019 value.
Total assets
Total assets showed a consistent upward trend throughout the five-year period, growing from 8,425,500 thousand USD in 2019 to 13,215,200 thousand USD in 2023. The most significant increases occurred between 2021 and 2023, suggesting considerable asset accumulation and expansion during these later years.
Debt to assets ratio
The debt to assets ratio steadily decreased over the analyzed period, starting at 0.43 in 2019 and declining to 0.25 by the end of 2023. This improvement indicates enhanced financial leverage and a stronger asset base relative to debt, reflecting a lower reliance on debt financing over time.

Debt to Assets (including Operating Lease Liability)

ON Semiconductor Corp., debt to assets (including operating lease liability) calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Current portion of financing lease liabilities
Current portion of long-term debt
Long-term debt, excluding current portion
Long-term financing lease liabilities
Total debt
Operating lease liabilities (included in Accrued expenses and other current liabilities)
Operating lease liabilities (included in Other long-term liabilities)
Total debt (including operating lease liability)
 
Total assets
Solvency Ratio
Debt to assets (including operating lease liability)1
Benchmarks
Debt to Assets (including Operating Lease Liability), Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Debt to Assets (including Operating Lease Liability), Sector
Semiconductors & Semiconductor Equipment
Debt to Assets (including Operating Lease Liability), Industry
Information Technology

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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =

2 Click competitor name to see calculations.


Total debt (including operating lease liability)
The total debt experienced a gradual reduction from 3,726,500 thousand US dollars at the end of 2019 to 3,272,400 thousand US dollars by the end of 2021. After this period of debt reduction, the total debt increased slightly to 3,512,400 thousand in 2022 and further to 3,623,800 thousand in 2023. This indicates a trend where debt was carefully managed and reduced initially, followed by a moderate increase in recent years.
Total assets
Total assets have exhibited consistent growth over the five-year period. Starting from 8,425,500 thousand US dollars at the end of 2019, assets grew to 8,668,000 thousand in 2020, then expanded more substantially to 9,626,000 thousand in 2021. The growth accelerated further in 2022 and 2023, reaching 11,978,500 thousand and 13,215,200 thousand, respectively. This steady increase suggests a successful expansion or accumulation of resources.
Debt to assets (including operating lease liability)
The debt-to-assets ratio demonstrates a declining trend throughout the period under review. Starting at 0.44 in 2019, the ratio steadily decreased each year to 0.42 in 2020, 0.34 in 2021, 0.29 in 2022, and finally 0.27 in 2023. This indicates an improvement in the company's leverage position, with debt growing at a slower rate or being reduced relative to asset growth, enhancing the balance sheet's strength over time.

Financial Leverage

ON Semiconductor Corp., financial leverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Total assets
Total ON Semiconductor Corporation stockholders’ equity
Solvency Ratio
Financial leverage1
Benchmarks
Financial Leverage, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Financial Leverage, Sector
Semiconductors & Semiconductor Equipment
Financial Leverage, Industry
Information Technology

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
Financial leverage = Total assets ÷ Total ON Semiconductor Corporation stockholders’ equity
= ÷ =

2 Click competitor name to see calculations.


Total assets
The total assets have demonstrated a consistent upward trend over the five-year period. Starting from approximately 8.43 billion US dollars in 2019, the assets increased steadily each year, reaching around 13.22 billion US dollars by the end of 2023. This growth indicates ongoing expansion or acquisition of resources.
Total stockholders’ equity
Stockholders’ equity has also increased significantly over the years. Beginning at roughly 3.30 billion US dollars in 2019, equity rose each year, accelerating particularly from 2021 onwards. By 2023, equity had grown to approximately 7.78 billion US dollars. This suggests improved retained earnings or capital inflows enhancing the company's net asset base.
Financial leverage ratio
The financial leverage ratio has shown a consistent decline from 2.55 in 2019 to 1.7 in 2023. This trend reflects a reduction in the company's reliance on debt relative to equity. A decreasing leverage ratio generally indicates a strengthening balance sheet and potentially lower financial risk.

Interest Coverage

ON Semiconductor Corp., interest coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income attributable to ON Semiconductor Corporation
Add: Net income attributable to noncontrolling interest
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Solvency Ratio
Interest coverage1
Benchmarks
Interest Coverage, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Interest Coverage, Sector
Semiconductors & Semiconductor Equipment
Interest Coverage, Industry
Information Technology

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
Interest coverage = EBIT ÷ Interest expense
= ÷ =

2 Click competitor name to see calculations.


Earnings before interest and tax (EBIT)
The EBIT exhibited a significant upward trend over the five-year period. Starting at approximately 425 million in 2019, the figure dipped in 2020 to 345 million, reflecting a contraction that year. From 2021 onward, EBIT increased markedly, reaching nearly 1.29 billion in 2021 and then surging to about 2.46 billion in 2022. The growth continued in 2023, with EBIT peaking at around 2.61 billion. Overall, this represents a strong recovery and expansion in operating profitability after a brief decline.
Interest Expense
Interest expense showed a general declining trend after peaking in 2020. It rose from around 148 million in 2019 to approximately 168 million in 2020, which might indicate increased borrowing or higher interest rates in that year. From 2021 onward, interest expense steadily decreased, first to about 130 million, then to roughly 95 million in 2022, and further down to approximately 75 million in 2023. This decline could suggest improved debt management, refinancing at more favorable terms, or reduction in debt levels.
Interest Coverage Ratio
The interest coverage ratio improved significantly over the period analyzed, indicating enhanced ability to meet interest obligations from operating earnings. Starting at 2.87 in 2019, the ratio declined to 2.05 in 2020, reflecting the lower EBIT and higher interest expense combination. Subsequently, it increased dramatically due to the rising EBIT and falling interest expenses, reaching 9.88 in 2021 and then sharply rising to 25.89 in 2022. The upward trajectory continued to 34.9 in 2023, demonstrating a strong capacity to cover interest charges and suggesting a substantially lower financial risk profile compared to the earlier years.

Fixed Charge Coverage

ON Semiconductor Corp., fixed charge coverage calculation, comparison to benchmarks

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Selected Financial Data (US$ in thousands)
Net income attributable to ON Semiconductor Corporation
Add: Net income attributable to noncontrolling interest
Add: Income tax expense
Add: Interest expense
Earnings before interest and tax (EBIT)
Add: Operating lease expense
Earnings before fixed charges and tax
 
Interest expense
Operating lease expense
Fixed charges
Solvency Ratio
Fixed charge coverage1
Benchmarks
Fixed Charge Coverage, Competitors2
Advanced Micro Devices Inc.
Analog Devices Inc.
Applied Materials Inc.
Broadcom Inc.
Intel Corp.
KLA Corp.
Lam Research Corp.
Micron Technology Inc.
NVIDIA Corp.
Qualcomm Inc.
Texas Instruments Inc.
Fixed Charge Coverage, Sector
Semiconductors & Semiconductor Equipment
Fixed Charge Coverage, Industry
Information Technology

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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

2 Click competitor name to see calculations.


The financial data indicates significant changes in earnings and fixed charges over the five-year period.

Earnings before fixed charges and tax
The earnings fluctuated initially, decreasing from 466.5 million USD in 2019 to 391.5 million USD in 2020. Subsequently, there was a strong recovery and growth, with earnings reaching 1.33 billion USD in 2021, then sharply increasing to 2.52 billion USD in 2022, followed by a moderate rise to 2.67 billion USD in 2023. This reflects substantial improvement and expansion in operating profitability from 2021 onwards.
Fixed charges
Fixed charges showed a declining trend over the years. Starting at 189.9 million USD in 2019, fixed charges increased slightly to 214.9 million USD in 2020. Since then, they consistently decreased, falling to 175.9 million USD in 2021, then to 155.1 million USD in 2022, and further down to 129.6 million USD in 2023. This reduction may indicate either lower interest or lease expenses or a restructuring of fixed obligations.
Fixed charge coverage ratio
The fixed charge coverage ratio illustrates the company's ability to cover fixed charges from earnings before fixed charges and tax. The ratio decreased from 2.46 in 2019 to 1.82 in 2020, signaling a comparatively weaker coverage. However, a significant turnaround occurred in 2021 when the ratio increased sharply to 7.58, followed by a further substantial rise to 16.23 in 2022 and 20.57 in 2023. This trend highlights a markedly improved capacity to meet fixed financial obligations, likely driven by higher earnings and lower fixed charges.