ON Current Ratio Analysis

The current ratio of 4.87x measures how many times a company's short-term assets cover its short-term liabilities, indicating it holds $4.87 in current assets for every $1 of current debt.

This is far above the sector median of 1.20x, placing ON in the 97th percentile among its peers, meaning it has more liquidity than nearly all comparable companies. No year-over-year or quarter-over-quarter changes are available, so the only value on record is 4.87x, and no trend direction can be assessed. Without any trend data, the interpretation relies solely on the level: an extremely high current ratio suggests minimal short-term insolvency risk, but it could also signal inefficient use of assets if cash or inventories are excessive. The combination of an exceptionally high ratio and no trend history implies a very low near-term liquidity risk, but offers no insight into whether that liquidity is being managed effectively. This metric contradicts the overall CAUTIOUS verdict, as the current ratio points to strong financial flexibility rather than a cause for concern.

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