ON Semiconductor Corporation — Earnings Quality Grade B
ON · Technology
Generally healthy
Screening Summary
Financial Trends
Revenue & Net Income ($B)
Margins (%)
18-Point Screening
Revenue Quality
DSO 55 days, change -5 days YoY
AR growth -21.7% vs revenue growth -15.3%
Revenue -15.3%, CFFO -7.7%. Cash follows revenue
Expense Quality
Inventory -11.3% vs COGS 3.8%. Normal
CapEx growth -50.8% vs revenue -15.3%. Normal
SG&A/Gross Profit = 30.5%. Normal
Gross margin swung -12.3pp (45.4% → 33.1%)
Cash Flow Quality
CFFO far exceeds NI (ratio 14.5x). Non-cash charges depressing profits
FCF $1.4B, FCF/NI = 11.72
Accruals ratio = -13.1%. Low accruals
Cash $2.5B covers 85% of debt $3.0B
Balance Sheet Health
Goodwill+Intangibles $2.0B = 26% of equity. Manageable
Debt/EBITDA = 3.4x. Healthy
Other assets -1.2% vs revenue -15.3%. Normal
No write-off data
Acquisition Risk
FCF after acquisitions positive
Goodwill+Intangibles change 10% YoY. Normal
Manipulation Score
M-Score = -3.05 (< -2.22). Unlikely manipulator
Beneish M-Score
Altman Z-Score
Generated from public financial data using forensic accounting frameworks. Not investment advice. Data: Yahoo Finance · 2026-04-10