Skyworks Solutions Inc (SWKS)

Inventory turnover

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cost of revenue	US$ in thousands	2,457,200	2,665,100	3,887,200	3,126,500	2,057,600
Inventory	US$ in thousands	784,800	1,119,700	1,212,100	885,000	806,000
Inventory turnover		3.13	2.38	3.21	3.53	2.55

September 30, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $2,457,200K ÷ $784,800K
= 3.13

The inventory turnover ratio measures how efficiently a company manages its inventory by determining how many times it sells and replaces its inventory during a specific period.

Over the past five years, Skyworks Solutions Inc's inventory turnover ratio has varied, indicating fluctuations in its inventory management efficiency. In 2024, the inventory turnover ratio stood at 3.13, showing that Skyworks Solutions Inc sold and replaced its inventory approximately 3.13 times during the year. This represents an improvement from the previous year's ratio of 2.38.

Comparing the inventory turnover ratios across the five-year period, we observe that 2021 had the highest ratio of 3.53, suggesting that the company was able to sell and replenish its inventory more frequently that year. Conversely, 2020 had the lowest ratio of 2.55, indicating a lower turnover of inventory during that year.

Overall, Skyworks Solutions Inc's inventory turnover has shown some variability over the past five years, with fluctuations indicating changing efficiency in managing its inventory levels. An upward trend in the inventory turnover ratio suggests improved efficiency in inventory management, while a downward trend may indicate potential issues such as overstocking or slow sales.