Analysis of Liquidity Ratios
Quarterly Data
Liquidity ratios measure the company ability to meet its short-term obligations.
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- Selected Financial Data since 2005
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Liquidity Ratios (Summary)
ON Semiconductor Corp., liquidity ratios (quarterly data)
Based on: 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
- Current Ratio Analysis
- The current ratio exhibited a general downward trend during the early part of the analyzed period, declining from 2.32 to 1.9 between April 2020 and December 2020. This decline indicates a reduction in the company's short-term liquidity and ability to cover current liabilities with current assets. However, from early 2021 onward, the current ratio demonstrated improvement, reaching a peak of 3.01 in September 2022, which signifies enhanced liquidity. After this peak, there was a moderate decrease before the ratio increased again toward the end of the period, finishing at 2.87 in March 2024, reflecting a generally strong short-term financial position in the most recent periods.
- Quick Ratio Analysis
- Similar to the current ratio, the quick ratio decreased from 1.52 in April 2020 to 1.0 in April 2021, highlighting a contraction in the company's ability to meet short-term liabilities using its most liquid assets (excluding inventories). Post April 2021, the quick ratio displayed a steady recovery, peaking at 1.88 in September 2022. This improvement indicates an increasing buffer of liquid assets relative to current liabilities. Despite a slight decline following the peak, the ratio improved again toward March 2024, reaching 1.63, thereby suggesting a relatively stable liquidity position with a focus on liquid assets.
- Cash Ratio Analysis
- The cash ratio revealed a downward direction from 1.14 in April 2020 to 0.6 in April 2021, indicating a diminished capacity to cover current liabilities using cash and cash equivalents alone. From mid-2021, the cash ratio showed a consistent upward trend, culminating in a value of 1.42 in December 2022, which highlights a strong cash position surpassing current liabilities. Although a slight dip was noted in the subsequent quarters, the ratio steadily recovered, ending at 1.22 in March 2024. This pattern suggests an overall strengthening in the immediate liquidity and cash reserves during the analyzed timeframe.
- Overall Liquidity Insights
- Throughout the observed periods, the liquidity ratios collectively reflect an initial contraction in the company's short-term financial health during the first year, likely influenced by external or operational factors. Subsequently, a marked recovery and improvement in liquidity were evidenced by all ratios, with peak values observed mostly around late 2022. The maintained high levels of these ratios toward early 2024 indicate a solid and improving liquidity profile, suggesting prudent cash and asset management practices enhancing the firm's ability to meet short-term obligations.
Current Ratio
ON Semiconductor Corp., current ratio calculation (quarterly data)
| Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current assets | |||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Current ratio1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Current Ratio, 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
1 Q1 2024 Calculation
Current ratio = Current assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Current Assets
- The level of current assets exhibited a generally upward trend over the analyzed periods, starting at approximately 4.03 billion USD and advancing to about 6.15 billion USD by the end of the latest quarter. Initial fluctuations were observed early on, including a decrease from the second to the fourth quarter of 2020, followed by a steady increase throughout 2021 and sustained growth into 2022 and early 2024. This indicates strengthening liquidity and asset availability for the company.
- Current Liabilities
- Current liabilities showed some variability but remained within a range between approximately 1.45 billion USD and 2.58 billion USD across the time frame. Notably, there was a dip in mid-2021, reaching the lowest liabilities in the dataset before increasing sharply toward the end of 2022. Subsequently, liabilities decreased again, stabilizing slightly above 2 billion USD by early 2024. The fluctuations suggest periodic changes in short-term obligations, possibly reflecting operational cycles or financing arrangements.
- Current Ratio
- The current ratio started at a high of 2.32, dipped to its lowest point of 1.84 in the first quarter of 2021, and thereafter mostly improved with some variability. It rose to a peak of 3.01 by the third quarter of 2022, indicating enhanced short-term financial stability. Despite some decreases thereafter, it maintained values above 2.0, ending at 2.87 in the latest quarter. This sustained current ratio above the benchmark level of 2.0 indicates that the company consistently maintained a healthy buffer of current assets relative to its current liabilities.
Quick Ratio
ON Semiconductor Corp., quick ratio calculation (quarterly data)
| Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Receivables, net | |||||||||||||||||||||||
| Total quick assets | |||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Quick ratio1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Quick Ratio, 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
1 Q1 2024 Calculation
Quick ratio = Total quick assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Trend in Total Quick Assets
- Total quick assets exhibited fluctuations over the analyzed periods. Initially, a decline was observed from approximately 2.63 billion USD in early April 2020 to about 1.76 billion USD in April 2021. Subsequently, total quick assets increased steadily, peaking around 3.76 billion USD at the end of 2022. In 2023 and early 2024, total quick assets showed a moderate decrease, stabilizing around 3.48 billion USD by the end of March 2024.
- Trend in Current Liabilities
- Current liabilities demonstrated some variability across the quarters. Beginning at roughly 1.74 billion USD in April 2020, there was a decreasing trend reaching a low near 1.45 billion USD by July 2021. However, from late 2021 onward, current liabilities increased noticeably, peaking at approximately 2.58 billion USD in the first quarter of 2023. Afterward, they trended downward, falling back to near 2.14 billion USD by the end of March 2024.
- Trend in Quick Ratio
- The quick ratio fluctuated over the period but generally indicated improved liquidity following an initial decline. Starting at 1.52 in early 2020, the ratio decreased to a low of 1.0 by April 2021, suggesting tighter liquidity conditions at that point. After this trough, the quick ratio progressively improved, reaching a peak of 1.88 in September 2022. In the subsequent quarters, the ratio varied modestly between 1.39 and 1.63, reflecting a consistently solid ability to cover short-term liabilities with liquid assets.
- Overall Analysis
- The data presents a period of initial stress in liquidity during 2020 to early 2021, as evidenced by decreasing quick assets and quick ratio nearing 1.0. From mid-2021 onward, both total quick assets and quick ratio improved, suggesting enhanced liquidity management and strengthened financial position. The rise in current liabilities particularly in 2022 and early 2023 could indicate increased short-term obligations, but this was largely offset by higher quick assets, maintaining a relatively strong quick ratio above 1.3 in most recent quarters. Overall, the company maintains sufficient liquid resources to meet current liabilities, with some volatility in short-term obligations.
Cash Ratio
ON Semiconductor Corp., cash ratio calculation (quarterly data)
| Mar 29, 2024 | Dec 31, 2023 | Sep 29, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jul 1, 2022 | Apr 1, 2022 | Dec 31, 2021 | Oct 1, 2021 | Jul 2, 2021 | Apr 2, 2021 | Dec 31, 2020 | Oct 2, 2020 | Jul 3, 2020 | Apr 3, 2020 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cash and cash equivalents | |||||||||||||||||||||||
| Total cash assets | |||||||||||||||||||||||
| Current liabilities | |||||||||||||||||||||||
| Liquidity Ratio | |||||||||||||||||||||||
| Cash ratio1 | |||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Ratio, 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. | |||||||||||||||||||||||
Based on: 10-Q (reporting date: 2024-03-29), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-29), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-07-01), 10-Q (reporting date: 2022-04-01), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-10-01), 10-Q (reporting date: 2021-07-02), 10-Q (reporting date: 2021-04-02), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-10-02), 10-Q (reporting date: 2020-07-03), 10-Q (reporting date: 2020-04-03).
1 Q1 2024 Calculation
Cash ratio = Total cash assets ÷ Current liabilities
= ÷ =
2 Click competitor name to see calculations.
- Cash Assets Trend
- Total cash assets exhibit significant fluctuations over the observed periods. Initially, cash assets were relatively strong, starting at approximately 1.98 billion USD in early April 2020. There was a notable decline through the end of 2020, reaching a low point of around 1.08 billion USD. From early 2021 onwards, cash assets generally increased, peaking at roughly 2.92 billion USD at the end of 2022. Afterward, there was a moderate decrease but overall the cash position remained elevated relative to the early 2020 levels, stabilizing near 2.6 billion USD by the first quarter of 2024.
- Current Liabilities Trend
- Current liabilities demonstrated a somewhat fluctuating but upward trend across the timeframe. Starting at approximately 1.74 billion USD in April 2020, liabilities saw a slight increase and some variability through 2021, reaching around 1.54 billion USD at the end of that year. From early 2022 onward, liabilities rose more sharply, peaking above 2.58 billion USD by March 2023, before decreasing to approximately 2.14 billion USD by the first quarter of 2024. This indicates growing short-term obligations with some easing in the most recent quarter.
- Cash Ratio Analysis
- The cash ratio, which relates cash assets to current liabilities, declined markedly from 1.14 in April 2020 to a trough of 0.60 in April 2021, reflecting a period when cash assets became less sufficient relative to liabilities. Subsequently, the ratio improved steadily, surpassing 1.0 by early 2022 and reaching a peak of approximately 1.42 at the end of 2022, indicating a strong liquidity position during this period. In the last recorded quarters, the ratio fluctuated slightly but remained above 1.0, ending at 1.22 in March 2024. This suggests the company has generally maintained sufficient cash coverage of its current liabilities, despite volatility.
- Overall Insights
- The analysis reveals a company managing through variability in liquidity and obligations, with cash reserves decreasing notably during 2020 but recovering strongly in subsequent years. The rise in current liabilities during 2022 may indicate increased operational or financing activities, yet the maintenance of a cash ratio above 1.0 in recent periods points to prudent liquidity management. The patterns suggest focus on sustaining cash availability to cover short-term debts, even amid growth in liabilities, reflecting a cautious yet resourceful financial approach.