Skyworks Solutions Inc (SWKS)
Financial leverage ratio
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total stockholders’ equity | US$ in thousands | 6,336,700 | 6,336,400 | 6,359,200 | 6,227,200 | 6,082,700 | 5,877,900 | 5,732,900 | 5,549,900 | 5,469,000 | 5,294,600 | 5,188,600 | 5,334,200 | 5,297,100 | 5,002,800 | 4,712,300 | 4,414,900 | 4,164,200 | 4,182,400 | 4,142,800 | 4,267,300 |
| Financial leverage ratio | 1.31 | 1.30 | 1.31 | 1.32 | 1.39 | 1.44 | 1.54 | 1.61 | 1.62 | 1.64 | 1.64 | 1.62 | 1.62 | 1.50 | 1.22 | 1.23 | 1.23 | 1.21 | 1.20 | 1.19 |
September 30, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $8,283,300K ÷ $6,336,700K
= 1.31
The financial leverage ratio of Skyworks Solutions Inc has shown some fluctuations over the past several quarters. The ratio has been gradually increasing from 1.19 in December 2019 to a peak of 1.64 in March 2022, before slightly decreasing to 1.31 in September 2024.
A financial leverage ratio above 1 indicates that the company has more debt than equity in its capital structure. A ratio of 1.31 implies that for every $1 of equity, Skyworks Solutions Inc has $1.31 of debt. This suggests that the company relies more on debt financing to fund its operations and growth.
The increasing trend in the financial leverage ratio from 2019 to 2022 could indicate that Skyworks Solutions Inc has been taking on more debt to support its business activities, potentially for investments in expansion or acquisitions. However, the recent slight decrease in the ratio may signal that the company is managing its debt levels more cautiously.
It is important for investors and stakeholders to closely monitor changes in the financial leverage ratio as high levels of debt can increase financial risk, especially in times of economic uncertainty or rising interest rates. A consistently high ratio could also impact the company's credit rating and overall financial health in the long run.
Peer comparison
Sep 30, 2024