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SWKS (Skyworks Solutions) ROE % : 3.82% (As of Sep. 2024)


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What is Skyworks Solutions ROE %?

ROE % is calculated as Net Income divided by its average Total Stockholders Equity over a certain period of time. Skyworks Solutions's annualized net income for the quarter that ended in Sep. 2024 was $242 Mil. Skyworks Solutions's average Total Stockholders Equity over the quarter that ended in Sep. 2024 was $6,337 Mil. Therefore, Skyworks Solutions's annualized ROE % for the quarter that ended in Sep. 2024 was 3.82%.

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

SWKS' s ROE % Range Over the Past 10 Years
Min: 9.51   Med: 23.1   Max: 31.67
Current: 9.51

During the past 13 years, Skyworks Solutions's highest ROE % was 31.67%. The lowest was 9.51%. And the median was 23.10%.

SWKS's ROE % is ranked better than
69.58% of 983 companies
in the Semiconductors industry
Industry Median: 3.99 vs SWKS: 9.51

Skyworks Solutions ROE % Historical Data

The historical data trend for Skyworks Solutions's ROE % 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 ROE % Chart

Skyworks Solutions Annual Data
Trend Sep15 Sep16 Sep17 Sep18 Sep19 Sep20 Sep21 Sep22 Sep23 Sep24
ROE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 19.67 31.67 23.69 17.02 9.60

Skyworks Solutions Quarterly Data
Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24
ROE % Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.37 15.03 11.65 7.62 3.82

Competitive Comparison of Skyworks Solutions's ROE %

For the Semiconductors subindustry, Skyworks Solutions's ROE %, along with its competitors' market caps and ROE % 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's ROE % Distribution in the Semiconductors Industry

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

* The bar in red indicates where Skyworks Solutions's ROE % falls into.



Skyworks Solutions ROE % Calculation

Skyworks Solutions's annualized ROE % for the fiscal year that ended in Sep. 2024 is calculated as

ROE %=Net Income (A: Sep. 2024 )/( (Total Stockholders Equity (A: Sep. 2023 )+Total Stockholders Equity (A: Sep. 2024 ))/ count )
=596/( (6082.7+6336.7)/ 2 )
=596/6209.7
=9.60 %

Skyworks Solutions's annualized ROE % for the quarter that ended in Sep. 2024 is calculated as

ROE %=Net Income (Q: Sep. 2024 )/( (Total Stockholders Equity (Q: Jun. 2024 )+Total Stockholders Equity (Q: Sep. 2024 ))/ count )
=242/( (6336.4+6336.7)/ 2 )
=242/6336.55
=3.82 %

* 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.

In the calculation of annual ROE %, the net income of the last fiscal year and the average total shareholder equity over the fiscal year are used. In calculating the quarterly data, the net income data used here is four times the quarterly (Sep. 2024) net income data. ROE % is displayed in the 30-year financial page.


Skyworks Solutions  (NAS:SWKS) ROE % Explanation

ROE % measures the rate of return on the ownership interest (shareholder's equity) of the common stock owners. It measures a firm's efficiency at generating profits from every unit of shareholders' equity (also known as net assets or assets minus liabilities). ROE % shows how well a company uses investment funds to generate earnings growth. ROE %s between 15% and 20% are considered desirable.

The factors that affect a company's ROE % can be illustrated with the three-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=242/6336.55
=(Net Income / Revenue )*(Revenue / Total Assets)*(Total Assets / Total Stockholders Equity)
=(242 / 4100)*(4100 / 8259.85)*(8259.85 / 6336.55)
=Net Margin %*Asset Turnover*Equity Multiplier
=5.9 %*0.4964*1.3035
=ROA %*Equity Multiplier
=2.93 %*1.3035
=3.82 %

With this breakdown, it is clear that if a company grows its Net Profit Margin, its Asset Turnover, or its Leverage, it can grow its ROE %.

The factors that affect a company's ROE % can also be illustrated with the five-step DuPont Analysis:

ROE %(Q: Sep. 2024 )
=Net Income/Total Stockholders Equity
=242/6336.55
=(Net Income / Pre-Tax Income) * (Pre-Tax Income / Operating Income) * (Operating Income / Revenue) * (Revenue / Total Assets) * (Total Assets / Total Stockholders Equity)
= (242 / 233.6) * (233.6 / 767.6) * (767.6 / 4100) * (4100 / 8259.85) * (8259.85 / 6336.55)
= Tax Burden * Interest Burden * Operating Margin % * Asset Turnover * Equity Multiplier
= 1.036 * 0.3043 * 18.72 % * 0.4964 * 1.3035
=3.82 %

Note: The net income data used here is four times the quarterly (Sep. 2024) net income data. The Revenue data used here is four times the quarterly (Sep. 2024) revenue data. The same rule applies to Pre-Tax Income and Operating Income.
* In the five-step DuPont Analysis, Operating Income is only available for non-financial companies. Thus, for Insurance companies, we use EBIT as a substitution of Operating Income. For Banks, both Operating Income and EBIT is unavailable. Thus we combined Interest Burden and Operating Margin % into Pretax Margin %, and the DuPont Analysis is divided into four components instead.

* 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.


Be Aware

Net Income is used.

Because a company can increase its ROE % by having more financial leverage, it is important to watch the equity multiplier when investing in high ROE % companies. Like ROA %, ROE % is calculated with only 12 months data. Fluctuations in company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective.

Asset light businesses require very few assets to generate very high earnings. Their ROE %s can be extremely high.


Skyworks Solutions ROE % Related Terms

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


Skyworks Solutions Business Description

Address
5260 California Avenue, Irvine, CA, USA, 92617
Skyworks Solutions Inc 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
Robert John Terry officer: VP, General Counsel &Secretary 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Reza Kasnavi officer: SVP, Tech. & Manufacturing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Carlos S Bori officer: VP, Sales & Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Philip Matthew Carter officer: VP, Corp. Controller 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Robert A Schriesheim director 3333 BEVERLY ROAD, HOFFMAN ESTATES IL 60179
Liam Griffin officer: VP, Sales and Marketing 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Karilee A Durham officer: SVP, Human Resources 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kris Sennesael officer: SVP & Chief Financial Officer 5260 CALIFORNIA AVENUE, IRVINE CA 92617
Kevin L Beebe director ONE ALLIED DRIVE, LITTLE ROCK AR 72202
Maryann Turcke director C/O NORTHERN STAR INVESTMENT CORP. II, 405 LEXINGTON AVENUE, NEW YORK NY 10174
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
Timothy R Furey director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
P Mcglade David director 5260 CALIFORNIA AVENUE, IRVINE CA 92617
David J Aldrich director, officer: President and CEO 20 SYLVAN ROAD, WOBURN MA 01801