Skyworks Solutions Inc (SWKS)
Total asset turnover
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 4,178,000 | 4,772,400 | 5,437,600 | 5,095,700 | 3,355,700 |
| Total assets | US$ in thousands | 8,283,300 | 8,426,700 | 8,873,800 | 8,590,700 | 5,106,700 |
| Total asset turnover | 0.50 | 0.57 | 0.61 | 0.59 | 0.66 |
September 30, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $4,178,000K ÷ $8,283,300K
= 0.50
The total asset turnover ratio for Skyworks Solutions Inc has been on a declining trend over the past five years. In 2020, the ratio was at its highest at 0.66, indicating that the company generated $0.66 in sales for every dollar of total assets. However, since then, the ratio has been decreasing, reaching 0.50 in 2024.
A total asset turnover ratio below 1.0 generally suggests that the company is not generating enough revenue in relation to its total assets. This downward trend may indicate inefficiency in asset utilization or slower sales growth relative to the growth in the company's assets.
It is essential for the company to analyze the reasons behind the decreasing total asset turnover ratio and take steps to improve operational efficiency and sales performance to ensure better utilization of its assets. Additionally, management should closely monitor this ratio going forward to assess the effectiveness of its asset management strategies and overall business performance.
Peer comparison
Sep 30, 2024