Stock Analysis on Net
Stock Analysis on Net

ON Semiconductor Corp. (NASDAQ:ON)

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

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

ON Semiconductor Corp., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Federal 372,700 331,900 8,000 600 1,200
State and local 21,600 31,800 4,800 100 —
Foreign 76,900 73,800 43,300 54,000 48,500
Current 471,200 437,500 56,100 54,700 49,700
Federal (107,900) (36,900) 89,200 (69,200) (5,000)
State and local 13,200 25,700 7,800 (66,400) —
Foreign (26,300) 32,100 (6,500) 21,100 18,000
Deferred (121,000) 20,900 90,500 (114,500) 13,000
Provision (benefit) for income taxes 350,200 458,400 146,600 (59,800) 62,700

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).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. ON Semiconductor Corp. current increased from 2021 to 2022 and from 2022 to 2023.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. ON Semiconductor Corp. deferred decreased from 2021 to 2022 and from 2022 to 2023.
Provision (benefit) for income taxes Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. ON Semiconductor Corp. provision (benefit) for income taxes increased from 2021 to 2022 but then slightly decreased from 2022 to 2023.

Effective Income Tax Rate (EITR)

ON Semiconductor Corp., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
U.S. federal statutory income tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
State and local taxes, net of federal tax benefit 0.70% 1.70% 1.40% -1.40% -2.60%
Impact of foreign operations 0.30% 1.70% -2.00% 7.60% 3.80%
Foreign derived intangible income benefit -6.80% -7.40% -7.80% 0.00% 0.00%
Nondeductible goodwill 0.00% 3.10% 0.00% 0.00% 0.00%
Impact of the Domestication 0.00% 0.00% 0.00% -35.70% 0.00%
Change in valuation allowance and related effects 0.50% -0.10% -0.40% -24.40% 1.80%
Share-based compensation costs -0.20% -0.50% -0.10% 1.70% -0.50%
U.S. federal R&D credit -0.40% -0.20% -0.40% -3.60% -3.70%
Non-deductible officer compensation 0.30% 0.30% 0.40% 1.10% 1.50%
Impact of audit settlement -1.80% 0.00% 0.00% 0.00% 0.00%
Other 0.20% -0.20% 0.60% -0.10% 1.40%
Effective income tax rate 13.80% 19.40% 12.70% -33.80% 22.70%

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).

Item Description The company
Effective income tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. ON Semiconductor Corp. effective income tax rate increased from 2021 to 2022 but then slightly decreased from 2022 to 2023 not reaching 2021 level.

Components of Deferred Tax Assets and Liabilities

ON Semiconductor Corp., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
NOL and tax credit carryforwards 227,600 221,600 354,400 471,600 612,900
163 (j) interest expense carryforward 4,600 5,100 17,400 65,700 49,300
Lease liabilities 59,700 65,000 50,200 32,500 22,100
ROU asset (58,900) (60,900) (49,200) (32,500) (22,100)
Tax-deductible goodwill and amortizable intangibles (32,200) (35,900) (57,500) (38,000) (48,600)
Capitalization of research and development expenses 419,900 311,400 185,800 90,700 42,700
Reserves and accruals 60,200 79,100 109,200 68,400 27,500
Property, plant and equipment (165,100) (156,300) (110,600) (95,800) (81,200)
Inventories 134,200 78,300 67,900 84,300 22,000
Undistributed earnings of foreign subsidiaries (67,700) (64,200) (58,700) (57,500) (63,700)
Share-based compensation 9,700 7,500 7,900 7,700 10,300
Pension 5,800 7,500 15,300 21,200 26,300
Convertible Debt 108,100 — — — —
Other 6,500 36,800 18,400 3,200 8,000
Deferred tax assets and liabilities before valuation allowance 712,400 495,000 550,500 621,500 605,500
Valuation allowance (150,300) (152,400) (227,400) (249,900) (357,900)
Net deferred tax asset (liability) 562,100 342,600 323,100 371,600 247,600

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).

Item Description The company
Net deferred tax asset (liability) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. ON Semiconductor Corp. net deferred tax asset (liability) increased from 2021 to 2022 and from 2022 to 2023.

Deferred Tax Assets and Liabilities, Classification

ON Semiconductor Corp., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Deferred tax assets 600,800 376,700 366,300 429,000 307,800
Deferred tax liabilities 38,700 34,100 43,200 57,300 60,200

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).

Item Description The company
Deferred tax assets Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. ON Semiconductor Corp. deferred tax assets increased from 2021 to 2022 and from 2022 to 2023.
Deferred tax liabilities Amount, after deferred tax asset, of deferred tax liability attributable to taxable differences, with jurisdictional netting and classified as noncurrent. ON Semiconductor Corp. deferred tax liabilities decreased from 2021 to 2022 but then increased from 2022 to 2023 not reaching 2021 level.

Adjustments to Financial Statements: Removal of Deferred Taxes

ON Semiconductor Corp., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported) 13,215,200 11,978,500 9,626,000 8,668,000 8,425,500
Less: Noncurrent deferred tax assets, net 600,800 376,700 366,300 429,000 307,800
Total assets (adjusted) 12,614,400 11,601,800 9,259,700 8,239,000 8,117,700
Adjustment to Total Liabilities
Total liabilities (as reported) 5,414,600 5,771,500 5,021,600 5,109,900 5,101,400
Less: Noncurrent deferred tax liabilities, net 38,700 34,100 43,200 57,300 60,200
Total liabilities (adjusted) 5,375,900 5,737,400 4,978,400 5,052,600 5,041,200
Adjustment to Total ON Semiconductor Corporation Stockholders’ Equity
Total ON Semiconductor Corporation stockholders’ equity (as reported) 7,782,600 6,188,500 4,585,400 3,538,500 3,301,700
Less: Net deferred tax assets (liabilities) 562,100 342,600 323,100 371,600 247,600
Total ON Semiconductor Corporation stockholders’ equity (adjusted) 7,220,500 5,845,900 4,262,300 3,166,900 3,054,100
Adjustment to Net Income Attributable To ON Semiconductor Corporation
Net income attributable to ON Semiconductor Corporation (as reported) 2,183,700 1,902,200 1,009,600 234,200 211,700
Add: Deferred income tax expense (benefit) (121,000) 20,900 90,500 (114,500) 13,000
Net income attributable to ON Semiconductor Corporation (adjusted) 2,062,700 1,923,100 1,100,100 119,700 224,700

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).

ON Semiconductor Corp., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

ON Semiconductor Corp., adjusted financial ratios

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
Net Profit Margin
Reported net profit margin 26.46% 22.85% 14.98% 4.46% 3.84%
Adjusted net profit margin 24.99% 23.10% 16.32% 2.28% 4.07%
Total Asset Turnover
Reported total asset turnover 0.62 0.70 0.70 0.61 0.65
Adjusted total asset turnover 0.65 0.72 0.73 0.64 0.68
Financial Leverage
Reported financial leverage 1.70 1.94 2.10 2.45 2.55
Adjusted financial leverage 1.75 1.98 2.17 2.60 2.66
Return on Equity (ROE)
Reported ROE 28.06% 30.74% 22.02% 6.62% 6.41%
Adjusted ROE 28.57% 32.90% 25.81% 3.78% 7.36%
Return on Assets (ROA)
Reported ROA 16.52% 15.88% 10.49% 2.70% 2.51%
Adjusted ROA 16.35% 16.58% 11.88% 1.45% 2.77%

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).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. ON Semiconductor Corp. adjusted net profit margin ratio improved from 2021 to 2022 and from 2022 to 2023.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ON Semiconductor Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ON Semiconductor Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ON Semiconductor Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. ON Semiconductor Corp. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.

ON Semiconductor Corp., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ON Semiconductor Corporation 2,062,700 1,923,100 1,100,100 119,700 224,700
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Profitability Ratio
Adjusted net profit margin2 24.99% 23.10% 16.32% 2.28% 4.07%

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).

2023 Calculations

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

2 Adjusted net profit margin = 100 × Adjusted net income attributable to ON Semiconductor Corporation ÷ Revenue
= 100 × 2,062,700 ÷ 8,253,000 = 24.99%

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

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Total assets 13,215,200 11,978,500 9,626,000 8,668,000 8,425,500
Activity Ratio
Total asset turnover1 0.62 0.70 0.70 0.61 0.65
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue 8,253,000 8,326,200 6,739,800 5,255,000 5,517,900
Adjusted total assets 12,614,400 11,601,800 9,259,700 8,239,000 8,117,700
Activity Ratio
Adjusted total asset turnover2 0.65 0.72 0.73 0.64 0.68

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).

2023 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 8,253,000 ÷ 13,215,200 = 0.62

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 8,253,000 ÷ 12,614,400 = 0.65

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. ON Semiconductor Corp. adjusted total asset turnover ratio deteriorated from 2021 to 2022 and from 2022 to 2023.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets 13,215,200 11,978,500 9,626,000 8,668,000 8,425,500
Total ON Semiconductor Corporation stockholders’ equity 7,782,600 6,188,500 4,585,400 3,538,500 3,301,700
Solvency Ratio
Financial leverage1 1.70 1.94 2.10 2.45 2.55
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 12,614,400 11,601,800 9,259,700 8,239,000 8,117,700
Adjusted total ON Semiconductor Corporation stockholders’ equity 7,220,500 5,845,900 4,262,300 3,166,900 3,054,100
Solvency Ratio
Adjusted financial leverage2 1.75 1.98 2.17 2.60 2.66

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).

2023 Calculations

1 Financial leverage = Total assets ÷ Total ON Semiconductor Corporation stockholders’ equity
= 13,215,200 ÷ 7,782,600 = 1.70

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted total ON Semiconductor Corporation stockholders’ equity
= 12,614,400 ÷ 7,220,500 = 1.75

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 ON Semiconductor Corp. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ON Semiconductor Corporation 2,062,700 1,923,100 1,100,100 119,700 224,700
Adjusted total ON Semiconductor Corporation stockholders’ equity 7,220,500 5,845,900 4,262,300 3,166,900 3,054,100
Profitability Ratio
Adjusted ROE2 28.57% 32.90% 25.81% 3.78% 7.36%

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).

2023 Calculations

1 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 Adjusted ROE = 100 × Adjusted net income attributable to ON Semiconductor Corporation ÷ Adjusted total ON Semiconductor Corporation stockholders’ equity
= 100 × 2,062,700 ÷ 7,220,500 = 28.57%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. ON Semiconductor Corp. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019
As Reported
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%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income attributable to ON Semiconductor Corporation 2,062,700 1,923,100 1,100,100 119,700 224,700
Adjusted total assets 12,614,400 11,601,800 9,259,700 8,239,000 8,117,700
Profitability Ratio
Adjusted ROA2 16.35% 16.58% 11.88% 1.45% 2.77%

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).

2023 Calculations

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

2 Adjusted ROA = 100 × Adjusted net income attributable to ON Semiconductor Corporation ÷ Adjusted total assets
= 100 × 2,062,700 ÷ 12,614,400 = 16.35%

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