Stock Analysis on Net

ON Semiconductor Corp. (NASDAQ:ON)

Analysis of Profitability Ratios 

Microsoft Excel

Profitability Ratios (Summary)

ON Semiconductor Corp., profitability ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Return on Sales
Gross profit margin 47.06% 48.97% 40.27% 32.65% 35.77%
Operating profit margin 30.76% 28.34% 19.10% 6.64% 7.84%
Net profit margin 26.46% 22.85% 14.98% 4.46% 3.84%
Return on Investment
Return on equity (ROE) 28.06% 30.74% 22.02% 6.62% 6.41%
Return on assets (ROA) 16.52% 15.88% 10.49% 2.70% 2.51%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. ON Semiconductor Corp. gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. ON Semiconductor Corp. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. ON Semiconductor Corp. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. ON Semiconductor Corp. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
ROA A profitability ratio calculated as net income divided by total assets. ON Semiconductor Corp. ROA improved from 2021 to 2022 and from 2022 to 2023.

Gross Profit Margin

ON Semiconductor Corp., gross profit margin 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)
Gross profit 3,883,500 4,077,200 2,714,300 1,715,800 1,973,600
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Profitability Ratio
Gross profit margin1 47.06% 48.97% 40.27% 32.65% 35.77%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 46.12% 44.93% 48.25% 44.53% 42.61%
Analog Devices Inc. 64.01% 62.70% 61.83% 65.87% 67.00%
Applied Materials Inc. 46.70% 46.51% 47.32% 44.72% 43.72%
Broadcom Inc. 68.93% 66.55% 61.36% 56.58% 55.24%
First Solar Inc. 39.19% 2.67% 24.97% 25.10% 17.93%
Intel Corp. 40.04% 42.61% 55.45% 56.01% 58.56%
KLA Corp. 59.81% 61.00% 59.93% 57.81% 59.08%
Lam Research Corp. 44.62% 45.69% 46.53% 45.88% 45.15%
Micron Technology Inc. -9.11% 45.18% 37.62% 30.57% 45.72%
NVIDIA Corp. 56.93% 64.93% 62.34% 61.99% 61.21%
Qualcomm Inc. 55.70% 57.84% 57.51% 60.67% 64.57%
Texas Instruments Inc. 62.90% 68.76% 67.47% 64.10% 63.71%

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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × 3,883,500 ÷ 8,253,000 = 47.06%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. ON Semiconductor Corp. gross profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Operating Profit Margin

ON Semiconductor Corp., operating profit margin 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)
Operating income 2,538,700 2,360,000 1,287,600 348,700 432,700
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Profitability Ratio
Operating profit margin1 30.76% 28.34% 19.10% 6.64% 7.84%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 1.77% 5.36% 22.20% 14.02% 9.37%
Analog Devices Inc. 31.07% 27.29% 23.12% 26.74% 28.55%
Applied Materials Inc. 28.86% 30.20% 29.87% 25.37% 22.93%
Broadcom Inc. 45.25% 42.84% 31.03% 16.80% 15.24%
First Solar Inc. 25.83% -1.04% 20.07% 11.71% -5.28%
Intel Corp. 0.17% 3.70% 24.62% 30.41% 30.62%
KLA Corp. 38.06% 39.67% 35.97% 25.87% 30.41%
Lam Research Corp. 29.69% 31.24% 30.64% 26.62% 25.53%
Micron Technology Inc. -36.97% 31.54% 22.68% 14.01% 31.51%
NVIDIA Corp. 15.66% 37.31% 27.18% 26.07% 32.47%
Qualcomm Inc. 21.74% 35.88% 29.16% 26.58% 31.59%
Texas Instruments Inc. 41.85% 50.63% 48.84% 40.76% 39.79%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 18.94% 27.13% 28.00% 25.28% 27.40%
Operating Profit Margin, Industry
Information Technology 26.32% 28.40% 28.74% 24.91% 25.31%

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
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 2,538,700 ÷ 8,253,000 = 30.76%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. ON Semiconductor Corp. operating profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Net Profit Margin

ON Semiconductor Corp., net profit margin 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 2,183,700 1,902,200 1,009,600 234,200 211,700
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Profitability Ratio
Net profit margin1 26.46% 22.85% 14.98% 4.46% 3.84%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 3.77% 5.59% 19.24% 25.50% 5.07%
Analog Devices Inc. 26.94% 22.88% 19.00% 21.79% 22.75%
Applied Materials Inc. 25.86% 25.31% 25.53% 21.04% 18.52%
Broadcom Inc. 39.31% 34.62% 24.54% 12.39% 12.05%
First Solar Inc. 25.03% -1.69% 16.03% 14.69% -3.75%
Intel Corp. 3.11% 12.71% 25.14% 26.84% 29.25%
KLA Corp. 32.27% 36.06% 30.04% 20.96% 25.73%
Lam Research Corp. 25.88% 26.73% 26.72% 22.42% 22.70%
Micron Technology Inc. -37.54% 28.24% 21.16% 12.54% 26.97%
NVIDIA Corp. 16.19% 36.23% 25.98% 25.61% 35.34%
Qualcomm Inc. 20.19% 29.27% 26.94% 22.09% 18.07%
Texas Instruments Inc. 37.16% 43.68% 42.35% 38.69% 34.88%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 17.42% 25.24% 25.47% 22.57% 23.57%
Net Profit Margin, Industry
Information Technology 22.14% 24.01% 25.53% 21.36% 22.08%

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
Net profit margin = 100 × Net income attributable to ON Semiconductor Corporation ÷ Revenue
= 100 × 2,183,700 ÷ 8,253,000 = 26.46%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. ON Semiconductor Corp. net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.

Return on Equity (ROE)

ON Semiconductor Corp., ROE 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 2,183,700 1,902,200 1,009,600 234,200 211,700
Total ON Semiconductor Corporation stockholders’ equity 7,782,600 6,188,500 4,585,400 3,538,500 3,301,700
Profitability Ratio
ROE1 28.06% 30.74% 22.02% 6.62% 6.41%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 1.53% 2.41% 42.18% 42.66% 12.06%
Analog Devices Inc. 9.32% 7.54% 3.66% 10.17% 11.64%
Applied Materials Inc. 41.94% 53.51% 48.08% 34.21% 32.94%
Broadcom Inc. 58.70% 50.62% 26.99% 12.40% 10.92%
First Solar Inc. 12.42% -0.76% 7.86% 7.22% -2.26%
Intel Corp. 1.60% 7.90% 20.83% 25.79% 27.16%
KLA Corp. 116.01% 237.04% 61.53% 45.65% 44.21%
Lam Research Corp. 54.94% 73.35% 64.85% 43.53% 46.89%
Micron Technology Inc. -13.22% 17.41% 13.34% 6.89% 17.59%
NVIDIA Corp. 19.76% 36.65% 25.64% 22.91% 44.33%
Qualcomm Inc. 33.51% 71.81% 90.88% 85.54% 89.35%
Texas Instruments Inc. 38.53% 60.02% 58.27% 60.90% 56.33%
ROE, Sector
Semiconductors & Semiconductor Equipment 13.59% 22.45% 25.35% 23.80% 25.76%
ROE, Industry
Information Technology 31.77% 38.39% 42.24% 35.01% 36.30%

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
ROE = 100 × Net income attributable to ON Semiconductor Corporation ÷ Total ON Semiconductor Corporation stockholders’ equity
= 100 × 2,183,700 ÷ 7,782,600 = 28.06%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. ON Semiconductor Corp. ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

Return on Assets (ROA)

ON Semiconductor Corp., ROA 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 2,183,700 1,902,200 1,009,600 234,200 211,700
Total assets 13,215,200 11,978,500 9,626,000 8,668,000 8,425,500
Profitability Ratio
ROA1 16.52% 15.88% 10.49% 2.70% 2.51%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 1.26% 1.95% 25.46% 27.78% 5.66%
Analog Devices Inc. 6.79% 5.46% 2.66% 5.69% 6.37%
Applied Materials Inc. 22.31% 24.41% 22.80% 16.19% 14.22%
Broadcom Inc. 19.33% 15.69% 8.91% 3.90% 4.04%
First Solar Inc. 8.02% -0.54% 6.32% 5.60% -1.53%
Intel Corp. 0.88% 4.40% 11.80% 13.65% 15.42%
KLA Corp. 24.07% 26.37% 20.23% 13.11% 13.05%
Lam Research Corp. 24.02% 26.78% 24.59% 15.47% 18.26%
Micron Technology Inc. -9.08% 13.11% 9.96% 5.01% 12.91%
NVIDIA Corp. 10.61% 22.07% 15.05% 16.15% 31.15%
Qualcomm Inc. 14.17% 26.39% 21.93% 14.60% 13.31%
Texas Instruments Inc. 20.12% 32.16% 31.48% 28.91% 27.84%
ROA, Sector
Semiconductors & Semiconductor Equipment 7.61% 12.57% 13.46% 11.53% 12.86%
ROA, Industry
Information Technology 13.08% 15.08% 15.61% 12.12% 12.73%

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
ROA = 100 × Net income attributable to ON Semiconductor Corporation ÷ Total assets
= 100 × 2,183,700 ÷ 13,215,200 = 16.52%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. ON Semiconductor Corp. ROA improved from 2021 to 2022 and from 2022 to 2023.