Silicon Laboratories Inc (SLAB)

Fixed asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Revenue (ttm)	US$ in thousands	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	837,554	833,650	840,599	850,996
Property, plant and equipment	US$ in thousands	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	135,939	136,601	137,644	138,819
Fixed asset turnover		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	6.16	6.10	6.11	6.13

December 31, 2023 calculation

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

Silicon Laboratories Inc has shown a fluctuating trend in its fixed asset turnover ratio over the past few years. The fixed asset turnover ratio measures the efficiency with which the company generates sales revenue from its investment in fixed assets.

The company's fixed asset turnover ratio has been consistently above 5, indicating that Silicon Laboratories Inc is effectively utilizing its fixed assets to generate sales. The upward trend from 2019 to mid-2023 suggests an improvement in asset utilization efficiency, reaching a peak of 6.82 in March 2023.

However, there was a slight decline in the ratio in the recent quarters, with a decrease from 6.82 in March 2023 to 5.36 in December 2023. This may indicate a potential slowdown in the company's ability to generate sales from its fixed assets.

Overall, Silicon Laboratories Inc has demonstrated strong efficiency in utilizing its fixed assets to drive sales, but variations in the ratio in recent quarters warrant further monitoring to ensure sustained operational effectiveness.