Skyworks Solutions Inc (SWKS)

Quick 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	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
Receivables	US$ in thousands	508,800	607,400	615,300	659,400	864,300	726,800	685,000	764,100	1,094,000	785,600	798,100	774,000	756,200	570,500	499,000	689,900	358,500	346,100	367,600	426,800
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
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

September 30, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($1,368,600K + $194,100K + $508,800K) ÷ $602,700K
= 3.44

The quick ratio of Skyworks Solutions Inc has shown a fluctuating trend over the past five years. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets, excluding inventory. A quick ratio above 1 indicates the company has enough liquid assets to cover its short-term liabilities.

From December 2019 to September 2020, the quick ratio hovered around 3, indicating a strong liquidity position. However, from December 2020 to September 2021, there was a significant increase in the quick ratio to well above 6, which could be due to a decrease in current liabilities or an increase in highly liquid assets.

Subsequently, from March 2021 to September 2023, the quick ratio declined steadily but remained above 1, implying that the company still had ample liquid assets to cover short-term obligations. However, the quick ratio experienced a sharp drop in the quarter ending September 2023 to 1.69, indicating a potential liquidity concern.

The quick ratio recovered in the following quarters, reaching 3.02 in March 2024 and continued to improve, hitting 3.44 by September 2024. This upward trend suggests an enhanced liquidity position and the company's ability to meet its short-term liabilities with its quick assets.

In conclusion, the quick ratio of Skyworks Solutions Inc has exhibited variability but generally remained above 1, indicating a solid liquidity position overall. Investors and stakeholders should continue to monitor this ratio to ensure the company can effectively manage its short-term obligations.