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Skyworks Solutions Financial Strength

: 7 (As of Jun. 2022)
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Skyworks Solutions has the Financial Strength Rank of 7.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Skyworks Solutions's Interest Coverage for the quarter that ended in Jun. 2022 was 29.02. Skyworks Solutions's debt to revenue ratio for the quarter that ended in Jun. 2022 was 0.49. As of today, Skyworks Solutions's Altman Z-Score is 5.54.


Competitive Comparison

For the Semiconductors subindustry, Skyworks Solutions's Financial Strength, along with its competitors' market caps and Financial Strength 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.

   

Skyworks Solutions Financial Strength Distribution

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

* The bar in red indicates where Skyworks Solutions's Financial Strength falls into.



Skyworks Solutions Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

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

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:

Skyworks Solutions's Interest Expense for the months ended in Jun. 2022 was $-11 Mil. Its Operating Income for the months ended in Jun. 2022 was $328 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2022 was $1,879 Mil.

Skyworks Solutions's Interest Coverage for the quarter that ended in Jun. 2022 is

Interest Coverage=-1*Operating Income (Q: Jun. 2022 )/Interest Expense (Q: Jun. 2022 )
=-1*327.9/-11.3
=29.02

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

Skyworks Solutions's Debt to Revenue Ratio for the quarter that ended in Jun. 2022 is

Debt to Revenue Ratio=Total Debt (Q: Jun. 2022 ) / Revenue
=(Short-Term Debt & Capital Lease Obligation + Long-Term Debt & Capital Lease Obligation) / Revenue
=(523.3 + 1878.9) / 4930.4
=0.49

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Skyworks Solutions has a Z-score of 5.54, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 5.54 is strong.

* 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.


Skyworks Solutions  (NAS:SWKS) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Skyworks Solutions has the Financial Strength Rank of 7.


Skyworks Solutions Financial Strength Related Terms

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


Skyworks Solutions Business Description

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

Skyworks Solutions Headlines

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