Skyworks Solutions Inc (SWKS)

Payables turnover

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Cost of revenue (ttm)	US$ in thousands	2,457,200	2,602,700	2,668,400	2,668,400	2,665,100	3,668,700	3,710,900	3,783,200	3,887,300	3,370,000	3,278,500	3,173,900	3,126,500	2,712,200	2,557,100	2,354,200	2,057,700	1,950,800	2,002,600	2,022,300
Payables	US$ in thousands	171,800	160,900	149,800	135,700	159,200	160,100	165,800	180,300	274,200	319,900	296,300	279,400	236,000	319,500	276,200	264,600	226,900	200,900	169,500	138,500
Payables turnover		14.30	16.18	17.81	19.66	16.74	22.92	22.38	20.98	14.18	10.53	11.06	11.36	13.25	8.49	9.26	8.90	9.07	9.71	11.81	14.60

September 30, 2024 calculation

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

Skyworks Solutions Inc's payables turnover ratio measures the efficiency with which the company manages its accounts payable. The higher the ratio, the faster the company is paying off its suppliers.

Looking at the historical trend of Skyworks Solutions Inc's payables turnover, we can see that the ratio has fluctuated over the past few years. From December 2019 to June 2020, the ratio remained relatively stable between 8.90 and 9.71. However, starting from September 2020, there was an increasing trend in the ratio, reaching a peak of 22.92 in June 2023. This indicates that the company was able to pay off its suppliers at a much faster rate during this period.

Subsequently, there was a slight decline in the payables turnover ratio, reaching 14.30 in September 2024. This decline may suggest that the company is taking longer to pay its suppliers compared to the peak period. It is important to note that a higher payables turnover ratio can indicate favorable credit terms with suppliers, while a lower ratio may suggest potential liquidity issues or a slowdown in payments.

Overall, the fluctuations in Skyworks Solutions Inc's payables turnover ratio demonstrate changes in the company's accounts payable management efficiency over time. It may be useful for stakeholders to further investigate the reasons behind these fluctuations to gain a deeper understanding of the company's financial health and management practices.