Silicon Laboratories Inc (SLAB)

Number of days of payables

		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
Payables turnover		5.59	7.88	7.23	5.55	4.25	4.44	3.50	4.77	6.24	4.77	3.65	3.38	4.60	3.10	4.35	4.91	4.98	8.43	7.98	8.13
Number of days of payables	days	65.24	46.34	50.50	65.77	85.96	82.27	104.39	76.45	58.46	76.53	100.02	108.08	79.39	117.83	83.87	74.30	73.35	43.30	45.75	44.87

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 5.59
= 65.24

The number of days of payables for Silicon Laboratories Inc has fluctuated over the recent quarters. As of December 31, 2023, the company took approximately 65.24 days to pay its payables, showing an improvement compared to the previous quarter at 46.34 days in September 30, 2023. This suggests that the company has been managing its payables more efficiently.

Looking back further, there was a notable increase in the number of days of payables in the mid-year quarters of 2022, peaking at 104.39 days in June 30, 2022. This extended payment period could indicate potential liquidity or cash flow challenges during that period.

In general, a shorter number of days of payables is usually favorable as it indicates that the company is taking less time to pay its suppliers, potentially freeing up working capital. However, an excessively low number of days of payables could also signal aggressive management of payables that might strain relationships with suppliers.

It would be important to monitor this ratio over time to ensure the company is maintaining a healthy balance in managing its payables efficiently while also maintaining positive relationships with suppliers.