Skyworks Solutions (LTS:0L77) ROCE %

: 13.88% (As of Dec. 2023)

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ROCE % measures how well a company generates profits from its capital. It is calculated as EBIT divided by Capital Employed, where Capital Employed is calculated as Total Assets minus Total Current Liabilities. Skyworks Solutions's annualized ROCE % for the quarter that ended in Dec. 2023 was 13.88%.

Skyworks Solutions ROCE % Historical Data

The historical data trend for Skyworks Solutions's ROCE % can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Skyworks Solutions Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

ROCE %

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21.58

19.55

25.61

19.57

15.12

Skyworks Solutions Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
ROCE %	Get a 7-Day Free Trial															19.13	14.48	12.44	13.68	13.88

Skyworks Solutions ROCE % Calculation

Skyworks Solutions's annualized ROCE % for the fiscal year that ended in Sep. 2023 is calculated as:

ROCE %	=	EBIT	/	( (Capital Employed	+	Capital Employed)	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(A: Sep. 2023 )		(A: Sep. 2022 )		(A: Sep. 2023 )
	=	1143.2	/	( ( (8873.8 - 1226.9)	+	(8426.7 - 955.7) )	/ 2 )
	=	1143.2	/	( (7646.9	+	7471)	/ 2 )
	=	1143.2	/	7558.95
	=	15.12 %

Skyworks Solutions's ROCE % of for the quarter that ended in Dec. 2023 is calculated as:

ROCE %	=	EBIT ⁽¹⁾	/	( (Capital Employed	+	Capital Employed)	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	EBIT	/	( ( (Total Assets - Total Current Liabilities)	+	(Total Assets - Total Current Liabilities) )	/ count )
		(Q: Dec. 2023 )		(Q: Sep. 2023 )		(Q: Dec. 2023 )
	=	1046.8	/	( ( (8426.7 - 955.7)	+	(8229.1 - 615.1) )	/ 2 )
	=	1046.8	/	( ( 7471	+	7614 )	/ 2 )
	=	1046.8	/	7542.5
	=	13.88 %

(1) Note: The EBIT data used here is four times the quarterly (Dec. 2023) EBIT data.

Skyworks Solutions (LTS:0L77) ROCE % Explanation

ROCE % can be especially useful when comparing the performance of capital-intensive companies. Unlike ROE %, which indicates the profitability of Shareholders Equity, ROCE % also considers long-term debt in Capital Employed. This can be helpful when analyzing companies with significant debt, as the result is neutralized by taking debt into consideration.

Generally speaking, a higher ROCE % indicates a stonger profitability for a company. Moreover, it is important to look at the ratio from a long term perspective. Investors tend to favor companies with stable and rising ROCE % trend over those with volatile ones.

Skyworks Solutions ROCE % Related Terms

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Skyworks Solutions (LTS:0L77) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Skyworks Solutions Inc (LTS:0L77) » Definitions » ROCE %

Comparable Companies

Traded in Other Exchanges

SWKS:USA SWKS:Mexico AWM:Germany S1SL34:Brazil SWKS:Austria

Address

5260 California Avenue, Irvine, CA, USA, 92617

Website

https://www.skyworksinc.com

Skyworks Solutions produces semiconductors for wireless handsets and other devices that are used to enable wireless connectivity. Its main products include power amplifiers, filters, switches, and integrated front-end modules that support wireless transmissions. Skyworks' customers are mostly large smartphone manufacturers, but the firm also has a growing presence in nonhandset applications such as wireless routers, medical devices, and automobiles.

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