Skyworks Solutions Inc (SWKS)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Quick ratio | 3.44 | 3.33 | 3.02 | 2.77 | 1.69 | 1.79 | 1.49 | 1.43 | 1.39 | 1.18 | 2.26 | 2.62 | 2.70 | 6.13 | 3.56 | 3.37 | 2.97 | 3.70 | 3.98 | 4.85 |
| 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 |
Skyworks Solutions Inc's liquidity ratios have shown mixed performance over the past few quarters. The current ratio, which measures the company's ability to cover short-term liabilities with current assets, has generally been strong, consistently above 2. A current ratio above 1 indicates that the company can meet its short-term obligations. The company's current ratio has been improving steadily, reaching 5.54 as of September 30, 2024.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown a consistent improvement, though at a lower level compared to the current ratio. With a quick ratio above 1, Skyworks Solutions Inc has a strong ability to cover its short-term liabilities with its most liquid assets. The company's quick ratio as of September 30, 2024, stood at 3.44.
The cash ratio, which is the most conservative liquidity ratio as it only considers cash and cash equivalents to cover current liabilities, has also shown improvement over time. The cash ratio, although lower than the current and quick ratios, provides insight into the company's ability to pay off its short-term obligations without relying on inventory or receivables. The cash ratio for Skyworks Solutions Inc as of September 30, 2024, was 2.59.
Overall, Skyworks Solutions Inc's liquidity ratios indicate a strong ability to meet its short-term obligations, with consistent improvements in liquidity over the quarters analyzed. Maintaining these strong liquidity positions will be crucial for the company to navigate any unforeseen economic challenges or opportunities effectively.
Additional liquidity measure
| 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 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 |
The cash conversion cycle of Skyworks Solutions Inc has shown fluctuating trends over the past few quarters. From December 2019 to September 2020, the company's cash conversion cycle ranged between 128.58 days to 141.72 days. However, from December 2020 to September 2023, there was a general decreasing trend in the cash conversion cycle, indicating improvements in the company's efficiency in managing its working capital.
In the most recent quarters, the cash conversion cycle slightly increased, with the cycle being around 135-160 days. This increase could suggest potential challenges in managing the company's receivables, inventory, and payables efficiently. A longer cash conversion cycle could tie up more of the company's cash flow, impacting liquidity and potentially signaling inefficiencies in operations or supply chain management.
Overall, Skyworks Solutions Inc should continue to monitor and manage its cash conversion cycle to ensure optimal utilization of its working capital and maintain healthy cash flow levels for sustained operational efficiency and growth.