Silicon Laboratories Inc (SLAB)

Working capital 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
Total current assets	US$ in thousands	737,931	1,461,360	2,238,570	975,821	943,859
Total current liabilities	US$ in thousands	163,570	185,776	668,827	284,498	137,701
Working capital turnover		1.36	0.80	0.46	0.74	0.59

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $782,258K ÷ ($737,931K – $163,570K)
= 1.36

The working capital turnover ratio for Silicon Laboratories Inc has shown fluctuations over the past five years. It increased from 0.59 in 2019 to 0.74 in 2020, which indicates an improvement in the company's efficiency in generating revenue from its working capital. However, in 2021, there was a significant decrease to 0.46, suggesting a potential inefficiency in utilizing working capital to generate sales.

The ratio rebounded in 2022 to 0.80, indicating a recovery in the company's ability to convert working capital into revenue. This positive trend continued in 2023, with a further increase to 1.36, reflecting a notable enhancement in efficiency in utilizing working capital.

Overall, the working capital turnover ratio for Silicon Laboratories Inc has shown variability but has demonstrated an upward trend in recent years, suggesting improved efficiency in managing working capital and generating revenue. Continued monitoring of this ratio will be essential to assess the company's ongoing operational efficiency.