Skyworks Solutions Inc (SWKS)

Cash conversion cycle

		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
Cash conversion cycle	days	135.51	143.54	143.29	160.03	197.65	161.00	156.60	158.51	161.50	138.04	125.73	119.73	129.93	109.63	107.80	133.81	141.72	132.20	128.58	131.28

September 30, 2024 calculation

Cash conversion cycle = DOH + DSO – Number of days of payables
= 116.58 + 44.45 – 25.52
= 135.51

The cash conversion cycle of Skyworks Solutions Inc has shown fluctuations over the past few quarters. The cycle measures the time it takes for a company to convert its investments in inventory and other resources into cash inflows from sales.

From the data provided, we observe that the cash conversion cycle ranged from a low of 107.80 days in March 2021 to a high of 197.65 days in September 2023. Generally, a lower cash conversion cycle indicates more efficient management of working capital.

In the recent quarter ending September 30, 2024, the cash conversion cycle was 135.51 days, showing a slight improvement from the previous quarter. It suggests that Skyworks Solutions Inc took approximately 135.51 days to convert its investments in inventory and other resources into cash inflows from sales during that period.

The company should continue monitoring and managing its cash conversion cycle effectively to optimize its working capital management and ensure efficient operations in the future.