Skyworks Solutions Inc (SWKS)

Interest coverage

		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
Interest expense	US$ in thousands	30,700	64,400	47,900	-13,400	0
Interest coverage		21.73	17.75	31.83	—	—

September 30, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $667,100K ÷ $30,700K
= 21.73

Skyworks Solutions Inc's interest coverage ratio has exhibited varying trends over the past five years. In 2024, the interest coverage ratio stands at 21.73, representing a significant improvement from the previous year's ratio of 17.75. This indicates that the company has a strong ability to meet its interest payments with its operating income.

Looking back to 2022, the interest coverage ratio was notably high at 31.83, suggesting a robust capacity to cover interest expenses through its earnings. However, it is worth noting that there is missing data for 2021 and 2020, limiting the comprehensive trend analysis.

The improving trend in recent years indicates that Skyworks Solutions Inc has been effectively managing its interest obligations relative to its earnings. A higher interest coverage ratio implies a lower financial risk for the company, as it signifies a greater buffer against potential financial difficulties arising from an inability to meet interest payments.