Skyworks Solutions Inc (SWKS)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	667,000	860,300	958,600	1,037,300	1,143,200	1,271,100	1,358,200	1,445,000	1,524,500	1,438,200	1,451,600	1,461,600	1,585,400	1,551,300	1,356,500	1,180,500	886,900	854,700	870,300	908,400
Interest expense (ttm)	US$ in thousands	30,600	36,100	45,700	57,500	64,400	66,300	61,400	53,900	48,000	17,700	9,000	-2,400	-13,400	2,600	0	1,100	1,300	12,200	14,500	14,100
Interest coverage		21.80	23.83	20.98	18.04	17.75	19.17	22.12	26.81	31.76	81.25	161.29	—	—	596.65	—	1,073.18	682.23	70.06	60.02	64.43

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $667,000K ÷ $30,600K
= 21.80

The interest coverage ratio for Skyworks Solutions Inc has shown fluctuating trends over the past several quarters. The ratio measures the company's ability to meet its interest obligations from its operating income.

From December 2019 to March 2020, the interest coverage ratio was relatively stable, ranging from around 60 to 70. However, starting from June 2020, there was a significant improvement in the company's ability to cover its interest payments, with the ratio exceeding 1000 in December 2020 and then showing an increasing trend reaching a peak of 161.29 in June 2022.

The high interest coverage ratios indicate that Skyworks Solutions Inc has a comfortable margin of safety to meet its interest obligations with its operating income. However, it is important to note that there is a lack of data for some periods, particularly in December 2021, March 2021, and March 2022.

Overall, the interest coverage ratios reflect a strong financial position for Skyworks Solutions Inc during the analyzed periods, indicating a healthy ability to service its debt and suggesting a lower risk of default.