Silicon Laboratories Inc (SLAB)
Working capital 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 |
Total current assets | US$ in thousands | 602,033 | 737,931 | 1,461,360 | 2,238,570 | 975,821 |
Total current liabilities | US$ in thousands | 97,883 | 163,570 | 185,776 | 668,827 | 284,498 |
Working capital turnover | 1.16 | 1.36 | 0.80 | 0.46 | 0.74 |
December 31, 2024 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $584,386K ÷ ($602,033K – $97,883K)
= 1.16
Silicon Laboratories Inc's working capital turnover has displayed fluctuations over the years, reflecting changes in the efficient utilization of its working capital. The ratio decreased from 0.74 in December 31, 2020, to 0.46 in December 31, 2021, suggesting a potential decrease in the company's ability to efficiently convert working capital into revenue during that period. However, there was a significant improvement in the ratio in December 31, 2022, reaching 0.80, indicating better efficiency in managing working capital.
Subsequently, there was a notable increase in the working capital turnover to 1.36 in December 31, 2023, signaling a substantial enhancement in the company's ability to use its working capital effectively to generate revenue. However, the ratio slightly decreased to 1.16 by December 31, 2024, although it still remained relatively high compared to previous years, demonstrating continued efficiency in working capital management.
Overall, the trend in Silicon Laboratories Inc's working capital turnover indicates varying levels of effectiveness in utilizing working capital to drive revenue generation over the years, with periods of improvement and slight fluctuations in efficiency.
Peer comparison
Dec 31, 2024