Skyworks Solutions Inc (SWKS)

Current ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
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
Current ratio		5.54	3.33	2.63	4.35	5.17

September 30, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,341,000K ÷ $602,700K
= 5.54

The current ratio of Skyworks Solutions Inc has shown a significant improvement over the past five years. As of September 30, 2024, the current ratio stands at 5.54, indicating that the company had $5.54 in current assets for every $1 in current liabilities. This represents a substantial increase compared to the previous year, where the current ratio was 3.33.

The upward trend in the current ratio suggests that Skyworks Solutions Inc has strengthened its liquidity position and improved its ability to cover short-term obligations. A higher current ratio is generally seen as a positive indicator of a company's financial health and ability to meet its short-term commitments.

The current ratio fluctuated over the five-year period, reaching a low of 2.63 in September 2022 and a high of 5.54 in September 2024. However, despite the fluctuations, the current ratio has generally remained above 2, which is considered the minimum threshold for a healthy liquidity position.

Overall, the steady improvement in the current ratio reflects positively on Skyworks Solutions Inc's financial management and suggests that the company is effectively managing its current assets and liabilities to maintain a strong liquidity position.