Skyworks Solutions (NAS:SWKS) Altman Z2-Score

: 6.70 (As of Today)

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Good Sign:

Skyworks Solutions has a Altman Z2-Score of 6.70, indicating it is in Safe Zones. This implies the Altman Z2-Score is strong.

The zones of discrimination were as such:

When Altman Z2-Score <= 1.1, it is in Distress Zones.
When Altman Z2-Score >= 2.6, it is in Safe Zones.
When Altman Z2-Score is between 1.1 and 2.6, it is in Grey Zones.

The historical rank and industry rank for Skyworks Solutions's Altman Z2-Score or its related term are showing as below:

SWKS' s Altman Z2-Score Range Over the Past 10 Years
Min: 0.45 Med: 6.6 Max: 18.9
Current: 6.7

During the past 13 years, Skyworks Solutions's highest Altman Z2-Score was 18.90. The lowest was 0.45. And the median was 6.60.

Skyworks Solutions Altman Z2-Score Historical Data

The historical data trend for Skyworks Solutions's Altman Z2-Score 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

Altman Z2-Score

12.80

11.30

6.60

6.31

Skyworks Solutions Quarterly Data
	Jun18	Sep18	Dec18	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23
Altman Z2-Score																6.60	6.24	6.31	6.41	6.70

Competitive Comparison

For the Semiconductors subindustry, Skyworks Solutions's Altman Z2-Score, along with its competitors' market caps and Altman Z2-Score 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 Altman Z2-Score Distribution

For the Semiconductors industry and Technology sector, Skyworks Solutions's Altman Z2-Score distribution charts can be found below:

* The bar in red indicates where Skyworks Solutions's Altman Z2-Score falls in comparison to its industry or sector. The grey bar indicates the Altman Z2-Score's extreme value range as defined by GuruFocus.

Skyworks Solutions Altman Z2-Score Calculation

Altman 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.

Z2-Score, also known as Z"-Score is the Z-Score for non-manufacturing companies excluding property/financial companies.

Skyworks Solutions's Altman Z2-Score for today is calculated with this formula:

6.56

3.26

6.72

1.05

X4_2

6.56

0.2523

3.26

0.6382

6.72

0.1536

1.05

1.8441

6.70

Trailing Twelve Months (TTM) ended in Mar. 2023:
Total Assets was $8,842 Mil.
Total Current Assets was $3,399 Mil.
Total Current Liabilities was $1,169 Mil.
Retained Earnings was $5,643 Mil.
Pre-Tax Income was 259.8 + 350.7 + 372.2 + 314.1 = $1,297 Mil.
Interest Expense was -18.9 + -16.9 + -14.3 + -11.3 = $-61 Mil.
Total Liabilities was $3,109 Mil.

* Note that for stock reported semi-annually or annually, GuruFocus uses latest annual data as the TTM data.

X1	=	Working Capital	/	Total Assets
	=	(Total Current Assets - Total Current Liabilities)	/	Total Assets
	=	(3399.2 - 1168.7)	/	8841.7
	=	0.2523

X2	=	Retained Earnings	/	Total Assets
	=	5642.6	/	8841.7
	=	0.6382

X3	=	Earnings Before Interest and Taxes	/	Total Assets
	=	(Pre-Tax Income - Interest Expense)	/	Total Assets
	=	(1296.8 - -61.4)	/	8841.7
	=	0.1536

X4_2	=	Net Worth	/	Total Liabilities
	=	(Total Stockholders Equity - Preferred Stock)	/	Total Liabilities
	=	(5732.9 - 0)	/	3108.8
	=	1.8441

The zones of discrimination were as such:

Distress Zones - 1.1 < Grey Zones < 2.6 - Safe Zones

Skyworks Solutions has a Altman Z2-Score of 6.70 indicating it is in Safe Zones.

Skyworks Solutions (NAS:SWKS) Altman Z2-Score Explanation

The original Z-Score model was based on publicly traded manufacturing companies while the Z2-Score, also known as Z"-score can be used for any type of company excluding property/financial companies. Both Z-Score and Z2-Score describes the financial health of a company, and its likelihood of financial distress.

X1: The Working Capital/Total Assets (WC/TA) ratio is a measure of the net liquid assets of the firm relative to the total capitalization. Working capital is defined as the difference between current assets and current liabilities. Ordinarily, a firm experiencing consistent operating losses will have shrinking current assets in relation to total assets. Altman found this one proved to be the most valuable liquidity ratio comparing with the current ratio and the quick ratio. This is however the least significant of the five factors.

X2: Retained Earnings/Total Assets: the RE/TA ratio measures the leverage of a firm. Retained earnings is the account which reports the total amount of reinvested earnings and/or losses of a firm over its entire life. Those firms with high RE, relative to TA, have financed their assets through retention of profits and have not utilized as much debt.

X3, Earnings Before Interest and Taxes/Total Assets (EBIT/TA): This ratio is a measure of the true productivity of the firm's assets, independent of any tax or leverage factors. Since a firm's ultimate existence is based on the earning power of its assets, this ratio appears to be particularly appropriate for studies dealing with corporate failure. This ratio continually outperforms other profitability measures, including cash flow.

X4_2, Net Worth (Total Stockholders Equity - Preferred Stock)/Total Liabilities (NW/TL): it compares a company’s stock net worth with its total liabilities and can be used to assess the extent of its reliance on debt.

Be Aware

Altman Z2-Score does not apply to financial companies.

Skyworks Solutions Altman Z2-Score Related Terms

Thank you for viewing the detailed overview of Skyworks Solutions's Altman Z2-Score 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 » Altman Z2-Score

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