Skyworks Solutions Inc (SWKS)

Working capital 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
Revenue (ttm)	US$ in thousands	4,178,000	4,371,800	4,537,500	4,644,600	4,772,400	4,912,600	5,074,000	5,256,500	5,437,600	5,376,100	5,259,900	5,096,100	5,095,700	4,755,000	4,375,400	3,969,700	3,355,800	3,226,400	3,256,600	3,300,900
Total current assets	US$ in thousands	3,341,000	3,239,100	3,145,500	3,086,600	3,179,500	3,124,900	3,399,200	3,414,300	3,229,900	2,908,000	2,775,500	2,863,400	2,865,400	4,521,900	2,804,700	2,575,200	2,317,600	2,337,400	2,220,800	2,346,500
Total current liabilities	US$ in thousands	602,700	562,900	606,400	615,100	955,700	816,900	1,168,700	1,225,500	1,226,900	1,226,100	696,600	681,900	658,500	578,300	538,400	507,600	448,400	401,100	362,200	333,200
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

September 30, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $4,178,000K ÷ ($3,341,000K – $602,700K)
= 1.53

The working capital turnover ratio of Skyworks Solutions Inc has fluctuated over the past several quarters. The ratio indicates how efficiently the company is utilizing its working capital to generate revenue.

The working capital turnover ratio has shown a general decreasing trend from Q3 2022 to Q3 2024, with occasional fluctuations. This suggests that the company may be experiencing challenges in efficiently converting its working capital into sales during these periods.

Notable points include a peak in working capital turnover in Q2 2022, followed by a substantial decline in Q3 2022 before a gradual recovery. The ratio hit a low point in Q2 2021 before showing improvement.

Overall, the declining trend in the working capital turnover ratio may indicate inefficiencies in managing working capital or challenges in generating sales with the available resources. It would be advisable for the company to closely monitor and analyze its working capital management strategies to enhance operational efficiency and profitability.