Skyworks Solutions Inc (SWKS)
Solvency ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.15 | 0.18 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.19 | 0.22 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.24 | 0.29 | 0.00 |
| Financial leverage ratio | 1.31 | 1.39 | 1.62 | 1.62 | 1.23 |
Skyworks Solutions Inc has exhibited a consistently low level of indebtedness over the years, as evidenced by the debt-to-assets, debt-to-capital, and debt-to-equity ratios effectively being zero for the most recent financial year ending on September 30, 2024, and for the prior year. This signifies that the company's assets and capital structure are primarily funded by equity rather than debt.
In terms of the financial leverage ratio, which indicates the extent to which the company is using debt to finance its operations, there has been a fluctuation over the past five years. The financial leverage ratio increased from 1.23 in 2020 to 1.62 in 2021 but then slightly decreased to 1.31 in 2024. This indicates that the company's reliance on debt to support its assets has decreased in the most recent year.
Overall, Skyworks Solutions Inc's solvency ratios suggest that the company maintains a strong financial position with low levels of debt relative to its assets, capital, and equity. The fluctuations in the financial leverage ratio should be monitored, but the company's overall solvency seems stable.
Coverage ratios
| Sep 30, 2024 | Sep 30, 2023 | Sep 30, 2022 | Sep 30, 2021 | Sep 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 21.73 | 17.75 | 31.83 | — | — |
Skyworks Solutions Inc has shown a consistent ability to cover its interest expenses over the past five years, as indicated by the interest coverage ratios of 21.73, 17.75, and 31.83 for the years ending September 30, 2024, 2023, and 2022, respectively.
The interest coverage ratio measures a company's ability to pay interest expenses on outstanding debt, with higher ratios indicating a greater capability to meet interest payments. Skyworks Solutions Inc's interest coverage ratios have remained well above a ratio of 1.0, suggesting a strong financial position and a reduced risk of defaulting on interest payments.
It is noteworthy that for the years ending September 30, 2021 and 2020, the interest coverage ratios were not available. While this lack of data for those years limits a complete trend analysis, the consistent high ratios in the years with available data indicate a solid financial health and a sound ability to service its debt obligations. Overall, Skyworks Solutions Inc's interest coverage ratios reflect a healthy financial position and a strong ability to handle its interest expenses.