Skyworks Solutions Inc (SWKS)

Payables 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
Payables	US$ in thousands	171,800	159,200	274,200	236,000	226,900
Payables turnover		14.30	16.74	14.18	13.25	9.07

September 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $2,457,200K ÷ $171,800K
= 14.30

The payables turnover ratio for Skyworks Solutions Inc has displayed fluctuations over the past five years. In the most recent fiscal year (ending September 30, 2024), the payables turnover ratio was 14.30, indicating that the company pays its suppliers approximately 14.30 times a year on average.

Compared to the previous year, where the ratio was 16.74, there has been a decrease in the payables turnover efficiency. However, it is important to note that the ratio remains relatively high, suggesting that Skyworks Solutions Inc manages its accounts payable effectively.

The trend of the payables turnover ratio over the five-year period shows some variability but generally demonstrates an ability to efficiently manage its payable obligations. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could signify strong cash flow management or favorable credit terms with suppliers.

Overall, the payables turnover ratio of Skyworks Solutions Inc has been consistent over the years, reflecting a solid relationship with its suppliers and efficient management of accounts payable.