Skyworks Solutions Inc (SWKS)

Activity ratios

Short-term

Turnover ratios

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
Inventory turnover 3.13 3.16 3.19 2.88 2.38 2.97 2.95 2.97 3.21 3.06 3.53 3.79 3.53 3.35 3.46 3.28 2.55 2.79 3.09 3.35
Receivables turnover 8.21 7.20 7.37 7.04 5.52 6.76 7.41 6.88 4.97 6.84 6.59 6.58 6.74 8.33 8.77 5.75 9.36 9.32 8.86 7.73
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
Working capital turnover 1.53 1.63 1.79 1.88 2.15 2.13 2.27 2.40 2.71 3.20 2.53 2.34 2.31 1.21 1.93 1.92 1.80 1.67 1.75 1.64

Based on the activity ratios of Skyworks Solutions Inc over the past several quarters, the following key observations can be made:

1. Inventory turnover: Skyworks Solutions Inc has shown a relatively stable inventory turnover ratio around 2.5 to 3.5 times over the observed period. This indicates that the company is efficiently managing its inventory levels and turning over its inventory within a reasonable timeframe.

2. Receivables turnover: The receivables turnover ratio has fluctuated but generally remained at a healthy level, ranging between 5.5 to 9.4 times. This suggests that Skyworks Solutions Inc is effective in collecting payments from its customers and converting its accounts receivables into cash.

3. Payables turnover: The payables turnover ratio has varied significantly, ranging from 8.5 to 22.9 times. A higher payables turnover ratio indicates that the company is taking longer to pay its suppliers, which can be advantageous for managing cash flow. However, the wide range of values indicates fluctuations in the company's payment policies.

4. Working capital turnover: The working capital turnover ratio has fluctuated but generally remained between 1.2 to 3.2 times. A higher working capital turnover ratio indicates that the company is efficiently utilizing its working capital to generate revenue.

In summary, Skyworks Solutions Inc demonstrates efficient management of its inventory and receivables, with some variability in its payable turnover ratio. Overall, the company's activity ratios indicate effective utilization of resources and working capital to drive its operations.

Average number of days

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
Days of inventory on hand (DOH) days 116.58 115.39 114.28 126.77 153.35 122.93 123.64 122.85 113.81 119.36 103.34 96.43 103.32 108.83 105.60 111.40 142.97 130.64 118.27 109.09
Days of sales outstanding (DSO) days 44.45 50.71 49.50 51.82 66.10 54.00 49.28 53.06 73.43 53.34 55.38 55.44 54.17 43.79 41.63 63.43 38.99 39.15 41.20 47.19
Number of days of payables days 25.52 22.56 20.49 18.56 21.80 15.93 16.31 17.40 25.75 34.65 32.99 32.13 27.55 43.00 39.42 41.02 40.25 37.59 30.89 25.00

Days of Inventory on Hand (DOH) measures how efficiently a company manages its inventory. A higher DOH indicates that the company takes longer to sell its inventory, which can tie up working capital and increase storage costs.

Skyworks Solutions Inc's average DOH over the past few quarters has been relatively high, ranging from 96.43 days to 153.35 days. The trend shows some fluctuations, with a peak in inventory holding in Q3 2020 and a decrease in Q2 2022. While the recent DOH figures have been on the higher side, the company should monitor and try to optimize its inventory management to improve efficiency.

Days of Sales Outstanding (DSO) reflects how quickly a company collects payment from its customers. A lower DSO indicates better efficiency in collecting receivables, which boosts cash flow and liquidity.

Skyworks Solutions Inc's DSO has ranged from 38.99 days to 73.43 days over the past quarters. The company has shown some fluctuations in collecting payments from customers, with a downward trend from Q1 2021 to Q1 2022 and a subsequent increase in DSO in recent quarters. Skyworks should aim to reduce its DSO to enhance its cash flow and working capital position.

Number of Days of Payables measures how long a company takes to pay its suppliers. A higher number of days of payables indicates that the company is taking longer to settle its bills, which can benefit cash flow but may strain supplier relationships if excessively prolonged.

Skyworks Solutions Inc's days of payables have fluctuated between 15.93 days and 43.00 days over the quarters. The company has experienced some volatility in its payment cycles, with notable increases in Q2 2021 and Q2 2022. Skyworks should strike a balance in managing payables to maintain good relationships with suppliers while optimizing cash flow.

Long-term

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
Fixed asset turnover 3.26 3.46 3.49 3.46 3.43 3.45 3.39 3.36 3.39 3.34 3.33 3.29 3.39 3.27 3.13 3.04 2.69 2.67 2.70 2.77
Total asset turnover 0.50 0.53 0.55 0.56 0.57 0.58 0.57 0.59 0.61 0.62 0.62 0.59 0.59 0.64 0.76 0.73 0.66 0.64 0.65 0.65

The fixed asset turnover ratio for Skyworks Solutions Inc has been relatively stable over the past five years, averaging around 3.40. This indicates that the company generates approximately $3.40 in revenue for every dollar invested in fixed assets. The consistency in this ratio suggests that the company is efficiently utilizing its fixed assets to generate sales.

On the other hand, the total asset turnover ratio has shown a declining trend, decreasing from 0.76 in March 2021 to 0.50 in September 2024. This ratio indicates that the company generates 50 cents in revenue for every dollar invested in total assets. The decreasing trend in total asset turnover could imply that the company's efficiency in generating sales revenue from its total assets has decreased over time.

Overall, while the fixed asset turnover ratio reflects strong efficiency in utilizing fixed assets to generate revenue, the declining trend in total asset turnover signals a potential need to improve overall asset utilization efficiency. Skyworks Solutions Inc may need to evaluate its asset management strategies to improve its total asset turnover and enhance its overall financial performance.