Skyworks Solutions (NAS:SWKS) Interest Coverage

: 15.68 (As of Mar. 2023)

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Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Skyworks Solutions's Operating Income for the three months ended in Mar. 2023 was $296 Mil. Skyworks Solutions's Interest Expense for the three months ended in Mar. 2023 was $-19 Mil. Skyworks Solutions's interest coverage for the quarter that ended in Mar. 2023 was 15.68. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Skyworks Solutions's Interest Coverage or its related term are showing as below:

SWKS' s Interest Coverage Range Over the Past 10 Years
Min: 22.82 Med: No Debt Max: No Debt
Current: 22.82

SWKS's Interest Coverage is ranked worse than
54.5% of 666 companies
in the Semiconductors industry
Industry Median: 28.05 vs SWKS: 22.82

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Skyworks Solutions Interest Coverage Historical Data

The historical data trend for Skyworks Solutions's Interest Coverage 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.

* Premium members only.

Skyworks Solutions Annual Data

Trend

Sep13

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Interest Coverage

No Debt

94.33

121.01

32.52

Skyworks Solutions Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Interest Coverage																32.63	29.02	28.64	21.74	15.68

Competitive Comparison

For the Semiconductors subindustry, Skyworks Solutions's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Skyworks Solutions Interest Coverage Distribution

For the Semiconductors industry and Technology sector, Skyworks Solutions's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Skyworks Solutions's Interest Coverage falls in comparison to its industry or sector. The grey bar indicates the Interest Coverage's extreme value range as defined by GuruFocus.

Skyworks Solutions Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Skyworks Solutions's Interest Coverage for the fiscal year that ended in Sep. 2022 is calculated as

Here, for the fiscal year that ended in Sep. 2022, Skyworks Solutions's Interest Expense was $-48 Mil. Its Operating Income was $1,558 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,897 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2022 )	/	Interest Expense (A: Sep. 2022 )
	=	-1	*	1557.7	/	-47.9
	=	32.52

Skyworks Solutions's Interest Coverage for the quarter that ended in Mar. 2023 is calculated as

Here, for the three months ended in Mar. 2023, Skyworks Solutions's Interest Expense was $-19 Mil. Its Operating Income was $296 Mil. And its Long-Term Debt & Capital Lease Obligation was $1,691 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Mar. 2023 )	/	Interest Expense (Q: Mar. 2023 )
	=	-1	*	296.4	/	-18.9
	=	15.68

The higher the ratio, the stronger the company's Financial Strength is.

Skyworks Solutions (NAS:SWKS) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Skyworks Solutions Interest Coverage Related Terms

Thank you for viewing the detailed overview of Skyworks Solutions's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Skyworks Solutions (NAS:SWKS) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Skyworks Solutions Inc (NAS:SWKS) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SWKS:Mexico AWM:Germany 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.

Executives

Suzanne E. Mcbride	director	C/O IRIDIUM COMMUNICATIONS INC., 1750 TYSONS BOULEVARD, SUITE 1400, MCLEAN VA 22102
Eric Guerin	director	1950 HASSELL ROAD, HOFFMAN ESTATES IL 60169
Reza Kasnavi	officer: SVP, Tech. & Manufacturing	5260 CALIFORNIA AVENUE, IRVINE CA 92617
Karilee A Durham	officer: SVP, Human Resources	5260 CALIFORNIA AVENUE, IRVINE CA 92617
Alan S. Batey	director	300 RENAISSANCE CENTER, M/C: 482-C25-A36, DETROIT MI 48265-3000
Kimberly S Stevenson	director	199 FREMONT STREET, 7TH FLOOR, SAN FRANCISCO CA 94105
Carlos S Bori	officer: VP, Sales & Marketing	5260 CALIFORNIA AVENUE, IRVINE CA 92617
Robert John Terry	officer: VP, General Counsel &Secretary	5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kris Sennesael	officer: SVP & Chief Financial Officer	5260 CALIFORNIA AVENUE, IRVINE CA 92617
Laura A Gasparini	officer: VP, Human Resources	20 SYLVAN ROAD, WOBURN MA 01801
Peter L Gammel	officer: Chief Technology Officer	600 LEXINGTON AVENUE, 29TH FLOOR, NEW YORK NY 10021
Victoria Vezina	officer: VP, Human Resources	20 SYLVAN ROAD, WOBURN MA 01801
Christine King	director	AMIS HOLDINGS, INC., 2300 BUCKSKIN RD, POCATELLO ID 83201
Bruce J Freyman	officer: Vice President - Operations	5221 CALIFORNIA AVE., IRVINE CA 92617
Donald W Palette	officer: V. P., Chief Financial Officer	20 SYLVAN ROAD, WOBURN MA 01801