Silicon Laboratories Inc (SLAB)

Inventory turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cost of revenue	US$ in thousands	272,198	321,672	381,549	295,468	216,083
Inventory	US$ in thousands	105,639	194,295	100,417	49,307	47,861
Inventory turnover		2.58	1.66	3.80	5.99	4.51

December 31, 2024 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $272,198K ÷ $105,639K
= 2.58

Silicon Laboratories Inc's inventory turnover has exhibited fluctuations over the past five years. In 2020, the company's inventory turnover stood at 4.51, indicating that its inventory was turned over approximately 4.51 times during the year. The ratio improved in 2021 to 5.99, suggesting a more efficient management of inventory. However, in 2022, there was a notable decrease in the inventory turnover to 3.80, which could signal potential issues with inventory management or sales.

The trend continued in the subsequent years, with the inventory turnover ratios dropping significantly to 1.66 in 2023 and 2.58 in 2024. These lower ratios indicate that the company's inventory turnover slowed down considerably during these periods, potentially leading to excess inventory levels or inefficiencies in managing inventory.

Overall, Silicon Laboratories Inc's inventory turnover has shown variability, with periods of improved efficiency followed by declines. It is important for the company to closely monitor and evaluate its inventory management practices to ensure optimal utilization of resources and maintain healthy operating performance.