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ON Semiconductor (ON Semiconductor) Beneish M-Score : -2.21 (As of Apr. 26, 2024)


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What is ON Semiconductor Beneish M-Score?

The zones of discrimination for M-Score is as such:

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator.
An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

Good Sign:

Beneish M-Score -2.21 no higher than -1.78, which implies that the company is unlikely to be a manipulator.

The historical rank and industry rank for ON Semiconductor's Beneish M-Score or its related term are showing as below:

ON' s Beneish M-Score Range Over the Past 10 Years
Min: -2.94   Med: -2.64   Max: -2.18
Current: -2.21

During the past 13 years, the highest Beneish M-Score of ON Semiconductor was -2.18. The lowest was -2.94. And the median was -2.64.


ON Semiconductor Beneish M-Score Historical Data

The historical data trend for ON Semiconductor's Beneish M-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

ON Semiconductor Beneish M-Score Chart

ON Semiconductor Annual Data
Trend Dec14 Dec15 Dec16 Dec17 Dec18 Dec19 Dec20 Dec21 Dec22 Dec23
Beneish M-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only -2.44 -2.75 -2.66 -2.71 -2.21

ON Semiconductor Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Beneish M-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only -2.71 -2.69 -2.76 -2.33 -2.21

Competitive Comparison of ON Semiconductor's Beneish M-Score

For the Semiconductors subindustry, ON Semiconductor's Beneish M-Score, along with its competitors' market caps and Beneish M-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


ON Semiconductor's Beneish M-Score Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, ON Semiconductor's Beneish M-Score distribution charts can be found below:

* The bar in red indicates where ON Semiconductor's Beneish M-Score falls into.



ON Semiconductor Beneish M-Score Calculation

The M-score was created by Professor Messod Beneish. Instead of measuring the bankruptcy risk (Altman Z-Score) or business trend (Piotroski F-Score), M-score can be used to detect the risk of earnings manipulation. This is the original research paper on M-score.

The M-Score Variables:

The M-score of ON Semiconductor for today is based on a combination of the following eight different indices:

M=-4.84+0.92 * DSRI+0.528 * GMI+0.404 * AQI+0.892 * SGI+0.115 * DEPI
=-4.84+0.92 * 1.1204+0.528 * 1.0406+0.404 * 0.9415+0.892 * 0.9912+0.115 * 1.1301
-0.172 * SGAI+4.679 * TATA-0.327 * LVGI
-0.172 * 1.0255+4.679 * 0.022875-0.327 * 0.839
=-2.21

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Dec23) TTM:Last Year (Dec22) TTM:
Total Receivables was $935 Mil.
Revenue was 2018.1 + 2180.8 + 2094.4 + 1959.7 = $8,253 Mil.
Gross Profit was 941.9 + 1030.7 + 993.4 + 917.5 = $3,884 Mil.
Total Current Assets was $5,912 Mil.
Total Assets was $13,215 Mil.
Property, Plant and Equipment(Net PPE) was $4,444 Mil.
Depreciation, Depletion and Amortization(DDA) was $610 Mil.
Selling, General, & Admin. Expense(SGA) was $642 Mil.
Total Current Liabilities was $2,184 Mil.
Long-Term Debt & Capital Lease Obligation was $2,565 Mil.
Net Income was 562.7 + 582.7 + 576.6 + 461.7 = $2,184 Mil.
Non Operating Income was -23.1 + -8.4 + -3.4 + -61.2 = $-96 Mil.
Cash Flow from Operations was 611.2 + 566.6 + 390.8 + 408.9 = $1,978 Mil.
Total Receivables was $842 Mil.
Revenue was 2103.6 + 2192.6 + 2085 + 1945 = $8,326 Mil.
Gross Profit was 1020.5 + 1058.3 + 1037.1 + 961.3 = $4,077 Mil.
Total Current Assets was $5,729 Mil.
Total Assets was $11,979 Mil.
Property, Plant and Equipment(Net PPE) was $3,497 Mil.
Depreciation, Depletion and Amortization(DDA) was $552 Mil.
Selling, General, & Admin. Expense(SGA) was $631 Mil.
Total Current Liabilities was $2,061 Mil.
Long-Term Debt & Capital Lease Obligation was $3,069 Mil.




1. DSRI = Days Sales in Receivables Index

Measured as the ratio of Revenue in Total Receivables in year t to year t-1.

A large increase in DSR could be indicative of revenue inflation.

DSRI=(Receivables_t / Revenue_t) / (Receivables_t-1 / Revenue_t-1)
=(935.4 / 8253) / (842.3 / 8326.2)
=0.113341 / 0.101163
=1.1204

2. GMI = Gross Margin Index

Measured as the ratio of gross margin in year t-1 to gross margin in year t.

Gross margin has deteriorated when this index is above 1. A firm with poorer prospects is more likely to manipulate earnings.

GMI=GrossMargin_t-1 / GrossMargin_t
=(GrossProfit_t-1 / Revenue_t-1) / (GrossProfit_t / Revenue_t)
=(4077.2 / 8326.2) / (3883.5 / 8253)
=0.489683 / 0.470556
=1.0406

3. AQI = Asset Quality Index

AQI is the ratio of asset quality in year t to year t-1.

Asset quality is measured as the ratio of non-current assets other than Property, Plant and Equipment to Total Assets.

AQI=(1 - (CurrentAssets_t + PPE_t) / TotalAssets_t) / (1 - (CurrentAssets_t-1 + PPE_t-1) / TotalAssets_t-1)
=(1 - (5912.3 + 4443.9) / 13215.2) / (1 - (5729.4 + 3496.5) / 11978.5)
=0.216342 / 0.229795
=0.9415

4. SGI = Sales Growth Index

Ratio of Revenue in year t to sales in year t-1.

Sales growth is not itself a measure of manipulation. However, growth companies are likely to find themselves under pressure to manipulate in order to keep up appearances.

SGI=Sales_t / Sales_t-1
=Revenue_t / Revenue_t-1
=8253 / 8326.2
=0.9912

5. DEPI = Depreciation Index

Measured as the ratio of the rate of Depreciation, Depletion and Amortization in year t-1 to the corresponding rate in year t.

DEPI greater than 1 indicates that assets are being depreciated at a slower rate. This suggests that the firm might be revising useful asset life assumptions upwards, or adopting a new method that is income friendly.

DEPI=(Depreciation_t-1 / (Depreciaton_t-1 + PPE_t-1)) / (Depreciation_t / (Depreciaton_t + PPE_t))
=(551.8 / (551.8 + 3496.5)) / (609.5 / (609.5 + 4443.9))
=0.136304 / 0.120612
=1.1301

Note: If the Depreciation, Depletion and Amortization data is not available, we assume that the depreciation rate is constant and set the Depreciation Index to 1.

6. SGAI = Sales, General and Administrative expenses Index

The ratio of Selling, General, & Admin. Expense(SGA) to Sales in year t relative to year t-1.

SGA expenses index > 1 means that the company is becoming less efficient in generate sales.

SGAI=(SGA_t / Sales_t) / (SGA_t-1 /Sales_t-1)
=(641.5 / 8253) / (631.1 / 8326.2)
=0.077729 / 0.075797
=1.0255

7. LVGI = Leverage Index

The ratio of total debt to Total Assets in year t relative to yeat t-1.

An LVGI > 1 indicates an increase in leverage

LVGI=((LTD_t + CurrentLiabilities_t) / TotalAssets_t) / ((LTD_t-1 + CurrentLiabilities_t-1) / TotalAssets_t-1)
=((2565 + 2183.6) / 13215.2) / ((3068.7 + 2061.4) / 11978.5)
=0.359329 / 0.428276
=0.839

8. TATA = Total Accruals to Total Assets

Total accruals calculated as the change in working capital accounts other than cash less depreciation.

TATA=(IncomefromContinuingOperations_t - CashFlowsfromOperations_t) / TotalAssets_t
=(NetIncome_t - NonOperatingIncome_t - CashFlowsfromOperations_t) / TotalAssets_t
=(2183.7 - -96.1 - 1977.5) / 13215.2
=0.022875

An M-Score of equal or less than -1.78 suggests that the company is unlikely to be a manipulator. An M-Score of greater than -1.78 signals that the company is likely to be a manipulator.

ON Semiconductor has a M-score of -2.21 suggests that the company is unlikely to be a manipulator.


ON Semiconductor Beneish M-Score Related Terms

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ON Semiconductor (ON Semiconductor) Business Description

Traded in Other Exchanges
Address
5005 East McDowell Road, Phoenix, AZ, USA, 85008
Onsemi is a supplier of power semiconductors and sensors focused on the automotive and industrial markets. Onsemi is the second-largest power chipmaker in the world and the largest supplier of image sensors to the automotive market. While the firm used to be highly vertically integrated, it now pursues a hybrid manufacturing strategy for flexible capacity. Onsemi is pivoting to focus on emerging applications like electric vehicles, autonomous vehicles, industrial automation, and renewable energy.
Executives
Colpitts Bernard Raymond Jr officer: Chief Accounting Officer ONSEMI C/O H. SPENCER, 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250
Christina Lampe-onnerud director C/O FUELCELL ENERGY, INC., 3 GREAT PASTURE ROAD, DANBURY CT 06810
Christine Y Yan director C/O CABOT CORPORATION, TWO SEAPORT LANE, SUITE 1300, BOSTON MA 02210
Simon Keeton officer: EVP & GM, Pwr Sol Grp ONSEMI C/O H. SPENCER, 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250
Hassane El-khoury director, officer: CEO & President ONSEMI C/O L. BELLERJEAU M/D A700, 5005 EAST MCDOWELL ROAD, PHOENIX AZ 85008
Paul Anthony Mascarenas director 3850 HAMLIN ROAD, AUBURN HILLS MI 48326
Sudhir Gopalswamy officer: SVP & GM, ASG 5701 N. PIMA ROAD, SCOTTSDALE AZ 85250
Robert Tong officer: SVP & GM, ASG 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250
Vince Craig Hopkin officer: EVP & GM, ASG ONSEMI C/O M COLLINS M/D A700, 5005 EAST MCDOWELL ROAD, PHOENIX AZ 85008
George H Cave officer: Senior Vice President C O ONSEMI ATTN M COLLINS, 5005 E MCDOWELL RD MDA700, PHOENIX AZ 85008
Gregory L Waters director ONSEMI C/O H. SPENCER, 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250
Paul E Rolls officer: Exec VP Sales & Marketing C/O ON SEMICONDUCTOR, 5005 E MCDOWELL RD MD A700, PHOENIX AZ 85008
Emmanuel T Hernandez director C/O MEMC ELECTRONIC MATERIALS, INC., P O BOX 8, ST. PETERS MO 63376
Trent Thad officer: Exec VP & CFO ONSEMI C/O M. COLLINS M/D A700, 5005 EAST MCDOWELL ROAD, PHOENIX AZ 85008
Bruce E Kiddoo director ONSEMI C/O H. SPENCER, 5701 NORTH PIMA ROAD, SCOTTSDALE AZ 85250