Silicon Laboratories Inc (SLAB)

Payables turnover

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Cost of revenue (ttm) US$ in thousands 272,198 239,091 247,744 280,051 321,672 378,781 398,278 396,434 381,549 362,370 333,460 307,407 295,468 276,513 258,438 233,015 252,623 143,197 175,154 207,043
Payables US$ in thousands 42,448 44,648 39,295 44,575 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
Payables turnover 6.41 5.36 6.30 6.28 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

December 31, 2024 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $272,198K ÷ $42,448K
= 6.41

Silicon Laboratories Inc's payables turnover ratio measures how efficiently the company is managing its accounts payable. The payables turnover ratio is calculated by dividing the total purchases made during a period by the average accounts payable balance during the same period.

Based on the provided data, Silicon Laboratories Inc's payables turnover ratio has fluctuated over the analyzed periods. The ratio ranged from 3.10 to 7.88, showing varying levels of efficiency in managing its payables. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently, which could imply strong liquidity or favorable credit terms.

The trend analysis reveals some interesting points. The company's payables turnover ratio increased significantly from 2020 to 2021 before slightly declining in 2022. However, in 2023 and 2024, the ratio showed an upward trend, reaching its peak in September 2024 at 7.88.

Overall, Silicon Laboratories Inc's payables turnover ratio has shown fluctuations but has generally trended upwards in recent years, indicating improved efficiency in managing accounts payable. It signifies that the company is either paying its suppliers more promptly or negotiating better payment terms, which can positively impact its liquidity position and overall financial health.