Skyworks Solutions Inc (SWKS)
Working capital 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 current assets | US$ in thousands | 3,341,000 | 3,179,500 | 3,229,900 | 2,865,400 | 2,317,600 |
| Total current liabilities | US$ in thousands | 602,700 | 955,700 | 1,226,900 | 658,500 | 448,400 |
| Working capital turnover | 1.53 | 2.15 | 2.71 | 2.31 | 1.80 |
September 30, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $4,178,000K ÷ ($3,341,000K – $602,700K)
= 1.53
Skyworks Solutions Inc's working capital turnover has fluctuated over the past five years. In 2024, the working capital turnover ratio decreased to 1.53 from 2.15 in 2023, indicating a decline in the efficiency of utilizing working capital to generate revenue. This decrease might suggest that the company may be experiencing challenges in managing its working capital effectively.
Comparing 2024 to 2022, where the working capital turnover was 2.71, there was a significant decline in efficiency. This suggests that in 2024, the company was less effective in generating revenue from its working capital compared to 2022.
Similarly, when comparing 2024 to 2021 and 2020, where the ratios were 2.31 and 1.80, respectively, the trend indicates a decrease in efficiency over the years. The working capital turnover ratio of 1.53 in 2024 is the lowest among the five years presented, indicating a potential red flag in the company's ability to efficiently utilize its working capital.
Overall, the decreasing trend in working capital turnover ratios suggests that Skyworks Solutions Inc may need to assess and improve its working capital management practices to enhance operational efficiency and maximize revenue generation.
Peer comparison
Sep 30, 2024