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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 Jun. 2024 was $484 Mil. Skyworks Solutions's average Total Stockholders Equity over the quarter that ended in Jun. 2024 was $6,348 Mil. Therefore, Skyworks Solutions's annualized ROE % for the quarter that ended in Jun. 2024 was 7.62%.
The historical rank and industry rank for Skyworks Solutions's ROE % or its related term are showing as below:
During the past 13 years, Skyworks Solutions's highest ROE % was 31.67%. The lowest was 12.63%. And the median was 23.10%.
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.
Skyworks Solutions Annual Data | |||||||||||||||||||||
Trend | Sep14 | Sep15 | Sep16 | Sep17 | Sep18 | Sep19 | Sep20 | Sep21 | Sep22 | Sep23 | |||||||||||
ROE % | Get a 7-Day Free Trial | 20.77 | 19.67 | 31.67 | 23.69 | 17.02 |
Skyworks Solutions Quarterly Data | ||||||||||||||||||||
Sep19 | Dec19 | Mar20 | Jun20 | Sep20 | Dec20 | Mar21 | Jun21 | Sep21 | Dec21 | Mar22 | Jun22 | Sep22 | Dec22 | Mar23 | Jun23 | Sep23 | Dec23 | Mar24 | Jun24 | |
ROE % | Get a 7-Day Free Trial | 13.49 | 16.37 | 15.03 | 11.65 | 7.62 |
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.
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's annualized ROE % for the fiscal year that ended in Sep. 2023 is calculated as
ROE % | = | Net Income (A: Sep. 2023 ) | / | ( (Total Stockholders Equity (A: Sep. 2022 ) | + | Total Stockholders Equity (A: Sep. 2023 )) | / count ) |
= | 982.8 | / | ( (5469 | + | 6082.7) | / 2 ) | |
= | 982.8 | / | 5775.85 | ||||
= | 17.02 % |
Skyworks Solutions's annualized ROE % for the quarter that ended in Jun. 2024 is calculated as
ROE % | = | Net Income (Q: Jun. 2024 ) | / | ( (Total Stockholders Equity (Q: Mar. 2024 ) | + | Total Stockholders Equity (Q: Jun. 2024 )) | / count ) |
= | 483.6 | / | ( (6359.2 | + | 6336.4) | / 2 ) | |
= | 483.6 | / | 6347.8 | ||||
= | 7.62 % |
* 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 (Jun. 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: Jun. 2024 ) | ||||
= | Net Income | / | Total Stockholders Equity | ||
= | 483.6 | / | 6347.8 | ||
= | (Net Income / Revenue ) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (483.6 / 3622) | * | (3622 / 8273.05) | * | (8273.05 / 6347.8) |
= | Net Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 13.35 % | * | 0.4378 | * | 1.3033 |
= | ROA % | * | Equity Multiplier | ||
= | 5.84 % | * | 1.3033 | ||
= | 7.62 % |
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: Jun. 2024 ) | ||||||||
= | Net Income | / | Total Stockholders Equity | ||||||
= | 483.6 | / | 6347.8 | ||||||
= | (Net Income / Pre-Tax Income) | * | (Pre-Tax Income / Operating Income) | * | (Operating Income / Revenue) | * | (Revenue / Total Assets) | * | (Total Assets / Total Stockholders Equity) |
= | (483.6 / 533.6) | * | (533.6 / 528) | * | (528 / 3622) | * | (3622 / 8273.05) | * | (8273.05 / 6347.8) |
= | Tax Burden | * | Interest Burden | * | Operating Margin % | * | Asset Turnover | * | Equity Multiplier |
= | 0.9063 | * | 1.0106 | * | 14.58 % | * | 0.4378 | * | 1.3033 |
= | 7.62 % |
Note: The net income data used here is four times the quarterly (Jun. 2024) net income data. The Revenue data used here is four times the quarterly (Jun. 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.
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.
Carlos S Bori | officer: VP, Sales & Marketing | 5260 CALIFORNIA AVENUE, IRVINE CA 92617 |
Reza Kasnavi | officer: SVP, Tech. & Manufacturing | 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 |
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 |
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 |
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