Skyworks Solutions Inc (SWKS)

Debt-to-equity ratio

		Sep 30, 2024	Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020
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
Debt-to-equity ratio		0.00	0.00	0.24	0.29	0.00

September 30, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $6,336,700K
= 0.00

The debt-to-equity ratio of Skyworks Solutions Inc has shown a relatively stable trend over the past five years, with no debt reported for the fiscal years ending September 30, 2020, and September 30, 2023. In 2022, the ratio was 0.24, indicating that for every $1 of equity, there was $0.24 of debt. This suggests a conservative capital structure with a low reliance on debt financing.

The slight increase in the ratio to 0.29 in 2021 indicates a small rise in debt relative to equity, which could signal a strategic decision to leverage the business to support growth initiatives or investment opportunities. The return to a debt-free position in the subsequent fiscal year suggests a potential repayment of existing debt or a shift towards more equity financing.

Overall, a consistently low debt-to-equity ratio is generally viewed positively by investors and creditors as it indicates a lower financial risk and higher financial stability for the company. However, the company's strategic decisions regarding debt levels should be assessed in the context of its overall business strategy and industry dynamics.