Silicon Laboratories Inc (SLAB)

Fixed asset turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	782,258	1,024,110	720,860	510,928	473,785
Property, plant and equipment	US$ in thousands	145,890	152,016	146,516	135,803	135,939
Fixed asset turnover		5.36	6.74	4.92	3.76	3.49

December 31, 2023 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $782,258K ÷ $145,890K
= 5.36

Silicon Laboratories Inc's fixed asset turnover has fluctuated over the past five years, ranging from 3.49 in 2019 to 6.74 in 2022. The fixed asset turnover ratio measures the efficiency of the company in generating sales revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates better utilization of fixed assets to generate sales.

In 2023, the fixed asset turnover ratio decreased to 5.36 from the peak in 2022. This could imply that Silicon Laboratories Inc may have increased its investment in fixed assets without a proportionate increase in revenue generation. Despite the decrease, the ratio remains relatively high, indicating that the company is still efficiently using its fixed assets to generate sales compared to previous years.

It is important to carefully analyze the reasons behind the fluctuations in the fixed asset turnover ratio to understand the company's asset management strategies and their impact on revenue generation. Additional insights into the company's investment decisions and operational efficiency can be gained by comparing the fixed asset turnover ratio with industry benchmarks and competitors.