Silicon Laboratories Inc (SLAB)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 782,258 | 1,024,110 | 720,860 | 510,928 | 473,785 |
| Receivables | US$ in thousands | 29,295 | 71,437 | 98,313 | 95,169 | 75,639 |
| Receivables turnover | 26.70 | 14.34 | 7.33 | 5.37 | 6.26 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $782,258K ÷ $29,295K
= 26.70
Silicon Laboratories Inc's receivables turnover has shown a positive trend over the five-year period, indicating efficient management of receivables. The ratio has significantly improved from 6.26 in 2019 to 26.70 in 2023. This suggests that the company is collecting its accounts receivable more frequently each year, which is a positive sign because it reflects a faster conversion of credit sales into cash. The substantial increase in the receivables turnover ratio over the years indicates that Silicon Laboratories Inc is effectively managing its credit and collection policies to ensure timely receipt of payments from customers. This trend is favorable for the company as it signifies improved liquidity and working capital management.
Peer comparison
Dec 31, 2023