Silicon Laboratories Inc (SLAB)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Inventory turnover | 1.66 | 2.26 | 2.74 | 2.98 | 3.80 | 4.10 | 4.50 | 5.54 | 5.99 | 4.68 | 4.94 | 2.94 | 5.28 | 2.16 | 2.50 | 3.04 | 2.65 | 4.57 | 4.49 | 4.79 |
| Receivables turnover | 26.70 | 9.33 | 10.37 | — | 14.34 | — | — | — | 7.33 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Working capital turnover | 1.36 | 1.57 | 1.69 | 1.35 | 0.80 | 0.69 | 0.60 | 0.42 | 0.46 | 0.27 | 0.60 | 0.78 | 0.88 | 0.87 | 0.99 | 1.08 | 1.04 | 1.09 | 1.17 | 1.25 |
Silicon Laboratories Inc's inventory turnover has shown a declining trend over the past few quarters, indicating that the company is holding onto its inventory for a longer period before selling it. This could potentially lead to higher carrying costs and obsolescence risks.
The receivables turnover ratio has been inconsistent, with significant fluctuations in values. The high turnover ratios suggest that the company is efficient in collecting its accounts receivable, but the lack of consistent data for some quarters makes it difficult to draw a definitive conclusion.
The payables turnover ratio has been relatively stable, showing that the company is managing its payables effectively. A higher turnover ratio indicates that Silicon Laboratories is taking less time to pay its suppliers, which may help enhance relationships and potentially negotiate better terms in the future.
The working capital turnover ratio has fluctuated over the periods, with a general downward trend. A decreasing trend in this ratio could signal inefficiencies in managing working capital, possibly due to increased inventory or receivables relative to current liabilities. Silicon Laboratories may need to evaluate its working capital management strategies to improve efficiency.
Overall, Silicon Laboratories Inc may benefit from closely monitoring and managing its activity ratios to ensure optimal utilization of resources and improve overall operational efficiency in the long run.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 220.47 | 161.48 | 133.36 | 122.67 | 96.06 | 89.09 | 81.03 | 65.92 | 60.91 | 78.03 | 73.82 | 124.13 | 69.15 | 168.64 | 145.92 | 120.16 | 137.76 | 79.90 | 81.25 | 76.13 |
| Days of sales outstanding (DSO) | days | 13.67 | 39.13 | 35.20 | — | 25.46 | — | — | — | 49.78 | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
Days of Inventory on Hand (DOH) measures how many days, on average, a company holds its inventory before selling it. A higher DOH indicates slower inventory turnover and potential issues with excess or obsolete inventory. Silicon Laboratories Inc's DOH has fluctuated over time, with a recent increase to 220.47 days on Dec 31, 2023, indicating an increase in the average number of days it takes to sell its inventory.
Days of Sales Outstanding (DSO) reflects the average number of days it takes for a company to collect payment after a sale is made. A lower DSO is preferable as it signifies faster cash collection. Silicon Laboratories Inc's DSO has shown variability, with a decrease to 13.67 days on Dec 31, 2023, indicating an improvement in the collection period.
Number of Days of Payables measures how long a company takes to pay its suppliers. A longer payment period may indicate the company's ability to manage cash flow efficiently but could strain relationships with suppliers if too prolonged. Silicon Laboratories Inc's number of days of payables has also varied, with a recent increase to 65.24 days on Dec 31, 2023, suggesting an extension in the time taken to settle payables.
Overall, in analyzing Silicon Laboratories Inc's activity ratios, it is evident that the company has experienced fluctuations in its inventory management, sales collection efficiency, and payment practices over the periods examined. Careful monitoring and adjustments may be necessary to optimize these activity ratios for improved operational performance.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Fixed asset turnover | 5.36 | 6.32 | 6.69 | 6.82 | 6.74 | 6.43 | 5.96 | 5.39 | 4.92 | 4.59 | 4.35 | 3.91 | 4.48 | 4.88 | 5.51 | 6.34 | 6.16 | 6.10 | 6.11 | 6.13 |
| Total asset turnover | 0.54 | 0.65 | 0.67 | 0.48 | 0.47 | 0.42 | 0.37 | 0.28 | 0.24 | 0.18 | 0.32 | 0.29 | 0.30 | 0.35 | 0.40 | 0.44 | 0.50 | 0.51 | 0.52 | 0.52 |
Silicon Laboratories Inc's fixed asset turnover has shown a fluctuating trend over the past several quarters, ranging from a low of 3.91 to a high of 6.82. This indicates the company's ability to generate revenue relative to its investment in fixed assets has varied, with higher ratios reflecting better efficiency in asset utilization. Overall, the company's fixed asset turnover has generally been on an upward trajectory, suggesting improved efficiency in utilizing fixed assets.
On the other hand, the total asset turnover has also exhibited variability, with values fluctuating between 0.18 and 0.67. This ratio measures how efficiently the company is generating revenue from its total assets. The increasing trend in total asset turnover indicates improvement in the company's overall asset utilization and efficiency in generating sales from its total asset base. However, the ratio has shown some volatility over the quarters, so it may be worthwhile to monitor this trend over time to assess the company's ongoing performance.
In conclusion, while Silicon Laboratories Inc's fixed asset turnover has shown an overall positive trend, indicating improved efficiency in utilizing fixed assets to generate revenue, the total asset turnover has exhibited more variability. This suggests that the company is making progress in optimizing its asset utilization and generating sales, but continued monitoring of these ratios will be important for assessing the company's long-term operational efficiency and financial health.