Skyworks Solutions Inc (SWKS)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	637,300	831,900	932,200	1,016,300	1,125,000	1,259,100	1,354,200	1,448,200	1,527,100	1,466,500	1,480,500	1,487,900	1,612,700	1,552,800	1,360,500	1,185,300	891,900	858,200	870,300	908,400
Total assets	US$ in thousands	8,283,300	8,236,400	8,309,700	8,229,100	8,426,700	8,464,100	8,841,700	8,947,400	8,873,800	8,694,600	8,511,600	8,618,500	8,590,700	7,486,200	5,734,400	5,419,800	5,106,700	5,072,400	4,981,900	5,091,800
Operating ROA		7.69%	10.10%	11.22%	12.35%	13.35%	14.88%	15.32%	16.19%	17.21%	16.87%	17.39%	17.26%	18.77%	20.74%	23.73%	21.87%	17.47%	16.92%	17.47%	17.84%

September 30, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $637,300K ÷ $8,283,300K
= 7.69%

Operating ROA is a key financial ratio that measures a company's efficiency in generating profits from its assets used in operations. The trend of Skyworks Solutions Inc's operating ROA over the past few quarters shows a general decline from 23.73% in March 2021 to 7.69% in September 2024. This indicates a decrease in the company's ability to generate operating income relative to its asset base.

The highest operating ROA was observed in March 2021 at 23.73%, suggesting that the company was very efficient in utilizing its assets to generate operating profits at that time. However, the operating ROA has been gradually decreasing since then, with fluctuations in the interim periods.

The decreasing trend in operating ROA may signify different factors such as declining operating income, inefficient asset utilization, or an increase in total assets without a corresponding increase in operating income. Investors and stakeholders should closely monitor this ratio to assess the company's operational efficiency and profitability.