Skyworks Solutions Inc (SWKS)
Profitability ratios
Return on sales
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 41.19% | 44.16% | 47.89% | 49.30% | 48.06% |
| Operating profit margin | 15.26% | 23.57% | 28.08% | 31.65% | 26.58% |
| Pretax margin | 15.23% | 22.60% | 27.16% | 31.37% | 26.57% |
| Net profit margin | 14.27% | 20.59% | 23.45% | 29.40% | 24.28% |
Skyworks Solutions Inc has shown a declining trend in its profitability ratios over the past five years. The gross profit margin has decreased from 48.06% in 2020 to 41.19% in 2024, indicating a decrease in the percentage of revenue retained after accounting for the cost of goods sold.
Similarly, the operating profit margin has decreased significantly from 26.58% in 2020 to 15.26% in 2024, reflecting a decrease in operating efficiency and profitability. This trend is also observed in the pretax margin, which has decreased from 26.57% in 2020 to 15.23% in 2024, indicating a decline in profitability before accounting for taxes.
The net profit margin, which represents the percentage of revenue retained as net income after all expenses have been deducted, has also decreased from 24.28% in 2020 to 14.27% in 2024. This decline indicates that Skyworks Solutions Inc's ability to generate profits from its core business operations has diminished over the years.
Overall, the declining profitability ratios suggest that Skyworks Solutions Inc may be facing challenges in maintaining its profitability levels and efficiency in generating profits from its operations. Investors and stakeholders may want to closely monitor the company's financial performance and assess the factors contributing to the decline in profitability ratios.
Return on investment
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 7.70% | 13.35% | 17.21% | 18.77% | 17.46% |
| Return on assets (ROA) | 7.20% | 11.66% | 14.37% | 17.44% | 15.96% |
| Return on total capital | 10.53% | 18.79% | 22.53% | 23.24% | 21.41% |
| Return on equity (ROE) | 9.41% | 16.16% | 23.32% | 28.29% | 19.57% |
Skyworks Solutions Inc's profitability ratios have shown some fluctuations over the past five years. The Operating Return on Assets (Operating ROA) has declined from 17.21% in 2022 to 7.70% in 2024, indicating a decrease in the company's ability to generate operating income from its assets.
Similarly, the Return on Assets (ROA) has also shown a downward trend, falling from 17.44% in 2021 to 7.20% in 2024. This decline suggests that the company's overall profitability in relation to its assets has decreased over the years.
On the other hand, the Return on Total Capital has gradually decreased from 23.24% in 2021 to 10.53% in 2024. This ratio highlights the company's ability to generate profits from both equity and debt financing.
Meanwhile, the Return on Equity (ROE) has fluctuated over the years, with a peak of 28.29% in 2021 and a low of 9.41% in 2024. This ratio indicates the company's ability to generate profits for its shareholders.
Overall, the profitability ratios of Skyworks Solutions Inc show some variability, with a general downward trend in recent years. This may indicate challenges in maintaining or improving the company's profitability and efficiency in utilizing its assets. Further analysis and insights into the company's operational performance and financial management practices are recommended to understand the reasons behind these trends.