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ON Semiconductor Financial Strength

: 7 (As of Jun. 2022)
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ON Semiconductor has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

ON Semiconductor's Interest Coverage for the quarter that ended in Jun. 2022 was 31.55. ON Semiconductor's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.39. As of today, ON Semiconductor's Altman Z-Score is 5.45.


Competitive Comparison

For the Semiconductors subindustry, ON Semiconductor's Financial Strength, along with its competitors' market caps and Financial Strength 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 Financial Strength Distribution

For the Semiconductors industry and Technology sector, ON Semiconductor's Financial Strength distribution charts can be found below:

* The bar in red indicates where ON Semiconductor's Financial Strength falls into.



ON Semiconductor Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

ON Semiconductor's Interest Expense for the months ended in Jun. 2022 was $-22 Mil. Its Operating Income for the months ended in Jun. 2022 was $697 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $3,047 Mil.

ON Semiconductor's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*697.3/-22.1
=31.55

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

ON Semiconductor's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(165.2 + 3047.4) / 8340
=0.39

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

ON Semiconductor has a Z-score of 5.45, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.45 is strong.

* 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.


ON Semiconductor  (NAS:ON) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

ON Semiconductor has the Financial Strength Rank of 7.


ON Semiconductor Financial Strength Related Terms

Thank you for viewing the detailed overview of ON Semiconductor's Financial Strength provided by GuruFocus.com. Please click on the following links to see related term pages.


ON Semiconductor Business Description

ON Semiconductor logo
Address
5005 East McDowell Road, Phoenix, AZ, USA, 85008
Onsemi is a leading supplier of power and analog semiconductors, as well as sensors. Onsemi is the second- largest global supplier of discrete transistors like insulated gate bipolar transistors, or IGBTs, and metal oxide semiconductor field-effect transistors, or MOSFETs, and also has a significant integrated power chip business. Onsemi is also the largest supplier of image sensors to the automotive market, targeting autonomous driving applications. The firm is concentrated in and focused on the automotive, industrial, and communications markets, and is reducing its exposure to the consumer and computing markets.
Executives
Tong Robert officer: SVP & GM, ASG 5005 E. MCDOWELL ROAD PHOENIX AZ 85008
Thad Trent officer: Exec VP & CFO ONSEMI C/O M. COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008
Kiddoo Bruce E director ONSEMI C/O M. COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008
Waters Gregory L director ONSEMI C/O M. COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008
El-khoury Hassane director, officer: CEO & President ONSEMI C/O L. BELLERJEAU M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008
Carter Susan K director C/O INGERSOLL-RAND COMPANY 800-E BEATY STREET DAVIDSON NC 28036
Deitrich Thomas director C/O FREESCALE SEMICONDUCTOR, INC. 6501 WILLIAM CANNON DR WEST, TX30/OE19 AUSTIN TX 78735
Jatou Ross officer: SVP & GM, ISG 5005 EAST MCDOWELL ROAD A700 PHOENIX AZ 85008
Colpitts Bernard Raymond Jr officer: Chief Accounting Officer ONSEMI C/O M. COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008-4229
Keeton Simon officer: EVP & GM, Pwr Sol Grp ONSEMI C/O M. COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008-4229
Yan Christine Y director C/O CABOT CORPORATION TWO SEAPORT LANE, SUITE 1300 BOSTON MA 02210
Hopkin Vince Craig officer: EVP & GM, ASG ONSEMI C/O M COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008
Delfassy Gilles director ONSEMI C/O M. COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008
Campbell Alan director ONSEMI C/O M. COLLINS M/D A700 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008
Ozcelik Taner officer: SVP&GM, Image Sensor Group 5005 EAST MCDOWELL ROAD PHOENIX AZ 85008

ON Semiconductor Headlines

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