Silicon Laboratories Inc (SLAB)

Cash ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cash and cash equivalents	US$ in thousands	281,607	303,082	240,834	191,489	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
Short-term investments	US$ in thousands	100,554	66,596	98,336	141,201	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
Total current liabilities	US$ in thousands	97,883	118,305	100,113	111,359	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
Cash ratio		3.90	3.12	3.39	2.99	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

December 31, 2024 calculation

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

The cash ratio of Silicon Laboratories Inc has exhibited fluctuating trends over the periods mentioned in the data. The cash ratio, which measures the company's ability to cover its short-term liabilities using its cash and cash equivalents, started at 2.37 on March 31, 2020, indicating that the company had $2.37 of cash for every dollar of current liabilities.

The ratio saw significant improvement, reaching a high of 7.85 on March 31, 2022, suggesting a stronger liquidity position during that period. This sharp increase in the cash ratio could indicate efficient management of cash resources or a reduction in short-term obligations.

Subsequently, the cash ratio experienced some fluctuations but generally remained at relatively healthy levels above 3.00. This indicates that Silicon Laboratories Inc has maintained a consistent ability to cover its short-term liabilities with its available cash reserves.

Overall, the varying levels of the cash ratio over the periods suggest that Silicon Laboratories Inc has managed its liquidity well, with periods of significant improvement interspersed with minor fluctuations. It is essential for the company to continue monitoring and managing its cash position to ensure it can meet its short-term obligations effectively.