Silicon Laboratories Inc (SLAB)

Cash ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Cash and cash equivalents	US$ in thousands	281,607	227,504	499,915	1,074,620	202,720
Short-term investments	US$ in thousands	100,554	211,720	692,024	964,582	521,963
Total current liabilities	US$ in thousands	97,883	163,570	185,776	668,827	284,498
Cash ratio		3.90	2.69	6.42	3.05	2.55

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($281,607K + $100,554K) ÷ $97,883K
= 3.90

Silicon Laboratories Inc's cash ratio has shown variability over the past five years. The ratio, calculated as cash and cash equivalents divided by current liabilities, was 2.55 as of December 31, 2020, indicating that the company had $2.55 in cash and cash equivalents for every dollar of current liabilities.

Subsequently, the cash ratio increased to 3.05 by December 31, 2021, continuing the upward trend in liquidity. This improvement suggests that the company strengthened its ability to meet short-term obligations with its available cash reserves.

By December 31, 2022, the cash ratio surged to 6.42, reflecting a significant increase in liquidity and financial health. The sharp rise in the ratio could indicate efficient cash management practices or a build-up of cash reserves.

However, in the following year, the cash ratio declined to 2.69 by December 31, 2023, which might signal a temporary decrease in the company's liquid assets relative to its current liabilities.

As of December 31, 2024, Silicon Laboratories Inc's cash ratio rebounded to 3.90, indicating an improvement in liquidity compared to the previous year. This increase suggests that the company may have bolstered its cash position to better cover its short-term obligations.

Overall, Silicon Laboratories Inc's cash ratio fluctuated over the five-year period, with notable increases and decreases. Monitoring this ratio can provide insights into the company's liquidity position and its ability to manage short-term financial obligations.