Skyworks Solutions Inc (SWKS)
Return on equity (ROE)
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 596,000 | 982,800 | 1,275,200 | 1,498,300 | 814,800 |
| Total stockholders’ equity | US$ in thousands | 6,336,700 | 6,082,700 | 5,469,000 | 5,297,100 | 4,164,200 |
| ROE | 9.41% | 16.16% | 23.32% | 28.29% | 19.57% |
September 30, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $596,000K ÷ $6,336,700K
= 9.41%
Skyworks Solutions Inc's return on equity (ROE) has exhibited a declining trend over the past five years, with the ROE decreasing from 19.57% in 2020 to 9.41% in 2024. This trend suggests that the company's ability to generate profits from shareholders' equity has weakened over time.
A high ROE indicates the company is effectively utilizing shareholders' equity to generate profits, while a declining ROE can signal inefficiencies or decreasing profitability. In this case, the decreasing trend in ROE may raise concerns about Skyworks Solutions Inc's ability to generate sustainable returns for its shareholders.
It is important to further investigate the reasons behind the declining ROE, such as changes in profitability, asset utilization, or leverage. Additionally, comparing the company's ROE to industry peers can provide valuable insights into its relative performance and competitiveness within the industry.
Peer comparison
Sep 30, 2024