Silicon Laboratories Inc (SLAB)

Payables 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
Cost of revenue (ttm)	US$ in thousands	321,672	378,781	398,278	396,434	381,549	362,370	333,460	307,407	295,468	276,513	258,438	233,015	252,623	143,197	175,154	207,043	193,571	326,394	331,806	337,960
Payables	US$ in thousands	57,498	48,086	55,102	71,437	89,860	81,676	95,365	64,388	47,327	57,975	70,820	68,998	54,949	46,228	40,245	42,147	38,899	38,724	41,585	41,544
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

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $321,672K ÷ $57,498K
= 5.59

The payables turnover ratio for Silicon Laboratories Inc has varied over the past 20 quarters, ranging from a low of 3.10 to a high of 8.43. This ratio measures how efficiently the company is managing its accounts payable by indicating the number of times a company pays off its average accounts payable balance during a period.

Overall, the trend in Silicon Laboratories Inc's payables turnover ratio shows fluctuations, indicating changes in the company's ability to manage its trade payables efficiently. High turnover ratios suggest that the company is paying off its suppliers more frequently, which could result in better relationships with suppliers and potentially even discounts for prompt payment. Conversely, a lower turnover ratio may indicate that the company is taking longer to pay its suppliers, which could signal potential liquidity issues or strained relationships with vendors.

It is important for stakeholders to closely monitor the payables turnover ratio along with other financial metrics to assess the company's overall financial health and efficiency in managing its working capital.