Skyworks Solutions Inc (SWKS)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	1,368,600	1,263,400	1,205,400	1,029,700	718,800	721,600	832,600	819,900	566,000	643,000	656,400	876,400	882,900	2,845,000	1,059,900	617,200	566,700	791,300	912,400	928,200
Short-term investments	US$ in thousands	194,100	5,600	12,900	15,900	31,200	14,900	228,800	172,700	40,600	16,200	118,400	137,000	137,200	129,200	359,700	401,400	408,100	347,000	161,500	262,200
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
Cash ratio		2.59	2.25	2.01	1.70	0.78	0.90	0.91	0.81	0.49	0.54	1.11	1.49	1.55	5.14	2.64	2.01	2.17	2.84	2.96	3.57

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 measures a company's ability to cover its short-term liabilities with its available cash and cash equivalents. A higher cash ratio indicates a stronger ability to pay off current obligations quickly.

Analyzing Skyworks Solutions Inc's cash ratio over the past few quarters, we can see fluctuations in the company's liquidity position. The cash ratio has shown an increasing trend from 1.49 in December 2021 to 2.59 in September 2024, reflecting an improvement in the company's ability to meet short-term obligations with its cash reserves.

However, it's important to note that the cash ratio reached as low as 0.49 in September 2022, indicating a temporary weakness in liquidity management. Subsequently, the ratio has shown a more stable performance, staying above 1.0 since March 2023.

Overall, Skyworks Solutions Inc's recent cash ratio of 2.59 as of September 30, 2024, suggests that the company has a healthy level of cash relative to its current liabilities, indicating a favorable liquidity position. Investors and stakeholders may view this positively as it implies a lower risk of default on short-term obligations.