Skyworks Solutions Inc (SWKS)

Current 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
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
Current ratio		5.54	5.75	5.19	5.02	3.33	3.83	2.91	2.79	2.63	2.37	3.98	4.20	4.35	7.82	5.21	5.07	5.17	5.83	6.13	7.04

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 positive trend over the recent quarters, indicating the company's improving ability to cover its short-term liabilities with its current assets. As of September 30, 2024, the company's current ratio stands at 5.54, which means it has $5.54 in current assets for every $1 in current liabilities. This indicates a strong liquidity position for the company, with a substantial buffer to meet its short-term obligations.

Comparing the current ratio to historical data, we observe a consistent uptrend since the beginning of 2022, reflecting improved liquidity management and efficient asset utilization. The current ratio surpassed 5 in the last few quarters, which is generally considered a healthy level and suggests a strong financial position for Skyworks Solutions Inc.

It is worth noting that a current ratio above 1 indicates that the company has more than enough current assets to cover its current liabilities, providing a cushion for unexpected expenses or economic downturns. Skyworks Solutions Inc's current ratio well above this threshold demonstrates a robust financial standing and the ability to meet its short-term financial obligations comfortably.