Skyworks Solutions Inc (SWKS)
Return on total capital
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 667,100 | 1,143,200 | 1,524,500 | 1,585,300 | 891,700 |
| Long-term debt | US$ in thousands | — | — | 1,297,300 | 1,523,100 | — |
| Total stockholders’ equity | US$ in thousands | 6,336,700 | 6,082,700 | 5,469,000 | 5,297,100 | 4,164,200 |
| Return on total capital | 10.53% | 18.79% | 22.53% | 23.24% | 21.41% |
September 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $667,100K ÷ ($—K + $6,336,700K)
= 10.53%
Skyworks Solutions Inc's return on total capital has shown a decreasing trend over the past five years, as evidenced by the numbers: 10.53% in 2024, 18.79% in 2023, 22.53% in 2022, 23.24% in 2021, and 21.41% in 2020. This indicates that the company's ability to generate profit relative to its total capital employed has gradually declined. A lower return on total capital could suggest inefficiencies in the company's capital utilization or declining profitability. Further analysis is recommended to identify the factors contributing to this trend and to devise strategies for improvement.
Peer comparison
Sep 30, 2024