Silicon Laboratories Inc (SLAB)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	584,386	504,982	542,347	641,846	782,258	952,738	1,018,795	1,037,079	1,024,106	975,461	890,475	796,817	720,860	658,009	605,909	550,767	607,787	681,396	771,959	864,318
Property, plant and equipment	US$ in thousands	132,136	135,317	139,397	142,155	145,890	150,839	152,358	152,110	152,016	151,610	149,447	147,940	146,516	143,340	139,362	141,000	135,803	139,673	140,200	136,391
Fixed asset turnover		4.42	3.73	3.89	4.52	5.36	6.32	6.69	6.82	6.74	6.43	5.96	5.39	4.92	4.59	4.35	3.91	4.48	4.88	5.51	6.34

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $584,386K ÷ $132,136K
= 4.42

Silicon Laboratories Inc's fixed asset turnover ratio has shown fluctuations over the given period, ranging from a high of 6.82 on March 31, 2023, to a low of 3.73 on September 30, 2024. The fixed asset turnover indicates how efficiently the company is utilizing its fixed assets to generate revenue. A higher ratio generally signifies better asset utilization.

The trend of the fixed asset turnover ratio for Silicon Laboratories Inc shows a general decrease from the highest point in March 2023, followed by some fluctuations but remaining on a downward trajectory overall. This indicates a potential decrease in efficiency in utilizing fixed assets to generate sales over time.

It is important for the company to further analyze the reasons behind the fluctuations in the fixed asset turnover ratio and take necessary actions to improve asset efficiency. This could involve evaluating the management of fixed assets, exploring opportunities to increase revenue generation from existing assets, or potentially divesting underperforming assets.