Silicon Laboratories Inc (SLAB)

Current ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
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
Current ratio		6.15	4.51	7.87	3.35	3.43

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $602,033K ÷ $97,883K
= 6.15

Silicon Laboratories Inc's current ratio has shown a consistent ability to cover its short-term obligations with its current assets over the past five years. Starting at 3.43 in December 31, 2020, the ratio slightly decreased to 3.35 by December 31, 2021. However, there was a significant improvement in the current ratio to 7.87 by December 31, 2022, indicating a substantial increase in current assets relative to current liabilities.

Subsequently, the ratio decreased to 4.51 by December 31, 2023, but still remained at a healthy level. In the most recent year, December 31, 2024, the current ratio further improved to 6.15, demonstrating that the company's current assets continued to comfortably exceed its current liabilities.

Overall, the trend indicates that Silicon Laboratories Inc has maintained a strong liquidity position, with ample current assets to meet its short-term obligations throughout the period under consideration.