Skyworks Solutions Inc (SWKS)

Cash ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
Cash and cash equivalents	US$ in thousands	1,368,600	718,800	566,000	882,900	566,700
Short-term investments	US$ in thousands	194,100	31,200	40,600	137,200	408,100
Total current liabilities	US$ in thousands	602,700	955,700	1,226,900	658,500	448,400
Cash ratio		2.59	0.78	0.49	1.55	2.17

September 30, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($1,368,600K + $194,100K) ÷ $602,700K
= 2.59

The cash ratio of Skyworks Solutions Inc has shown fluctuations over the past five years. The ratio was relatively low in 2020 at 2.17, then increased significantly to 1.55 in 2021, before jumping to 0.49 in 2022 and further increasing to 0.78 in 2023. The most recent data for 2024 reveals a substantial improvement with a cash ratio of 2.59.

The cash ratio measures a company's ability to cover its short-term liabilities with its cash and cash equivalents. A higher cash ratio indicates a stronger ability to meet short-term obligations without relying on external sources of financing. The increasing trend in the cash ratio of Skyworks Solutions Inc suggests an improvement in the company's liquidity position over the years, particularly with the notable increase in 2024.

However, it is important to note that while a high cash ratio may indicate liquidity strength, excessively high levels of cash relative to current liabilities may signal that the company is not efficiently utilizing its resources. Therefore, further analysis of the company's overall financial health and cash management practices would provide a more comprehensive assessment of its financial position.