Silicon Laboratories Inc (SLAB)
Inventory turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cost of revenue | US$ in thousands | 321,672 | 381,549 | 295,468 | 216,083 | 193,571 |
| Inventory | US$ in thousands | 194,295 | 100,417 | 49,307 | 47,861 | 73,057 |
| Inventory turnover | 1.66 | 3.80 | 5.99 | 4.51 | 2.65 |
December 31, 2023 calculation
Inventory turnover = Cost of revenue ÷ Inventory
= $321,672K ÷ $194,295K
= 1.66
The inventory turnover for Silicon Laboratories Inc has fluctuated over the past five years, ranging from 1.66 in 2023 to 5.99 in 2021. A higher inventory turnover ratio indicates that the company is selling its inventory more quickly. In contrast, a lower ratio suggests slower inventory turnover, potentially leading to excess or obsolete inventory.
In 2021, the inventory turnover ratio peaked at 5.99, indicating that Silicon Laboratories was efficiently managing its inventory levels and selling products at a rapid pace. However, in 2023, the ratio decreased to 1.66, signaling a decline in the efficiency of converting inventory into sales.
It is essential for the company to closely monitor its inventory turnover ratio to ensure optimal inventory management, minimize carrying costs, and improve overall operational efficiency. Further analysis and comparison with industry benchmarks can provide valuable insights into the company's performance and competitiveness in managing its inventory effectively.
Peer comparison
Dec 31, 2023