Silicon Laboratories Inc (SLAB)

Receivables turnover

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Revenue	US$ in thousands	584,386	782,258	1,024,110	720,860	510,928
Receivables	US$ in thousands	54,479	29,295	71,437	98,313	95,169
Receivables turnover		10.73	26.70	14.34	7.33	5.37

December 31, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $584,386K ÷ $54,479K
= 10.73

The receivables turnover ratio for Silicon Laboratories Inc has shown a positive trend over the past five years.

From December 31, 2020, to December 31, 2021, the receivables turnover increased significantly from 5.37 to 7.33, indicating that the company was able to collect its accounts receivable at a faster rate in 2021 compared to the previous year.

The trend continued to improve as the receivables turnover ratio spiked to 14.34 on December 31, 2022, and surged even higher to 26.70 on December 31, 2023. These significant jumps suggest that Silicon Laboratories Inc effectively managed its receivables, possibly through efficient credit policies, timely collection efforts, or improved customer creditworthiness.

However, there was a notable decline in the receivables turnover ratio on December 31, 2024, dropping to 10.73. This decrease may indicate a slower collection of accounts receivable in that year, which could potentially impact the company's liquidity and cash flow.

Overall, Silicon Laboratories Inc has shown a generally positive trend in its receivables turnover, indicating effective management of accounts receivable. It is essential for the company to continue monitoring this ratio to ensure timely collection of receivables and maintain healthy cash flow levels.