Silicon Laboratories Inc (SLAB)

Cash ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cash and cash equivalents	US$ in thousands	227,504	159,928	234,813	716,377	499,915	483,277	504,850	765,911	1,074,620	1,362,410	303,084	205,224	202,720	230,358	277,659	615,770	227,146	237,056	189,549	231,144
Short-term investments	US$ in thousands	211,720	257,157	271,063	435,699	692,024	893,131	972,845	1,167,810	964,582	1,364,100	314,183	367,708	521,963	491,428	445,685	442,493	498,825	457,879	452,265	382,710
Total current liabilities	US$ in thousands	163,570	165,143	218,546	693,331	185,776	205,701	232,119	246,208	668,827	458,375	154,882	150,799	284,498	151,146	135,000	446,733	137,701	132,036	131,037	134,755
Cash ratio		2.69	2.53	2.31	1.66	6.42	6.69	6.37	7.85	3.05	5.95	3.99	3.80	2.55	4.78	5.36	2.37	5.27	5.26	4.90	4.56

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($227,504K + $211,720K) ÷ $163,570K
= 2.69

The cash ratio of Silicon Laboratories Inc has shown fluctuating trends over the past few quarters. The cash ratio, which measures a company's ability to cover its short-term liabilities with its cash and cash equivalents, has ranged from 1.66 to 7.85 over the last year.

In the most recent quarter (Dec 31, 2023), the cash ratio stood at 2.69, indicating that the company had $2.69 in cash and cash equivalents for every $1 of current liabilities. This suggests that Silicon Laboratories Inc maintains a healthy level of liquidity to meet its short-term obligations.

It is worth noting that the company experienced a significant increase in its cash ratio from the previous quarter, where it was at 1.66 on Mar 31, 2023. This improvement may signify a stronger cash position or more efficient management of short-term obligations.

Looking back over the past year, Silicon Laboratories Inc has generally maintained a cash ratio above 2.0, which is considered a good sign of liquidity. However, the company did see a spike in its cash ratio in the first half of 2022, with ratios above 6.0, indicating a temporary build-up of cash reserves.

Overall, the cash ratio analysis suggests that Silicon Laboratories Inc has managed its cash and short-term obligations effectively, maintaining a healthy balance between liquidity and operational needs.