Skyworks Solutions Inc (SWKS)
Operating return on assets (Operating ROA)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 637,400 | 1,125,000 | 1,527,000 | 1,612,700 | 891,800 |
| Total assets | US$ in thousands | 8,283,300 | 8,426,700 | 8,873,800 | 8,590,700 | 5,106,700 |
| Operating ROA | 7.70% | 13.35% | 17.21% | 18.77% | 17.46% |
September 30, 2024 calculation
Operating ROA = Operating income ÷ Total assets
= $637,400K ÷ $8,283,300K
= 7.70%
Skyworks Solutions Inc's operating return on assets (operating ROA) has shown a declining trend over the past five years, decreasing from 17.46% in 2020 to 7.70% in 2024. This indicates that the company's ability to generate profits from its operating activities relative to its total assets has weakened over the period.
The significant drop in operating ROA from 2022 to 2023, followed by a more gradual decline in subsequent years, suggests potential challenges in effectively utilizing its assets to generate operating income. Management should closely examine the operational efficiency and asset utilization strategies to improve profitability and optimize the utilization of its asset base.
Overall, the decreasing trend in operating ROA for Skyworks Solutions Inc highlights the importance of assessing the company's operational performance and asset management practices to enhance financial performance and create value for shareholders.
Peer comparison
Sep 30, 2024