Silicon Laboratories Inc (SLAB)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 4.51 | 4.68 | 3.76 | 2.11 | 7.87 | 7.90 | 7.37 | 8.62 | 3.35 | 6.37 | 7.50 | 5.71 | 3.43 | 6.20 | 6.80 | 2.79 | 6.85 | 6.78 | 6.47 | 6.04 |
| Quick ratio | 2.86 | 3.14 | 2.76 | 1.66 | 6.80 | 6.69 | 6.37 | 7.85 | 3.20 | 5.95 | 3.99 | 3.80 | 2.55 | 4.78 | 5.36 | 2.37 | 5.27 | 5.26 | 4.90 | 4.56 |
| 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 |
Silicon Laboratories Inc's liquidity ratios have exhibited fluctuating trends over the past years. The current ratio, a measure of the company's ability to cover its short-term obligations with current assets, has varied significantly, with a peak of 8.62 in March 2022 and a low of 2.11 in March 2023. The current ratio has generally been above industry averages, indicating a strong ability to meet short-term obligations.
The quick ratio, which provides a more stringent measure of liquidity by excluding inventory from current assets, has also shown fluctuations. Silicon Laboratories' quick ratio has ranged from 1.66 in March 2020 to 7.85 in March 2022, reflecting the company's ability to cover short-term liabilities without relying on inventory.
The cash ratio, representing the proportion of current liabilities that can be covered by cash and cash equivalents, has shown similar patterns to the quick ratio. Silicon Laboratories' cash ratio has been relatively stable, ranging from 1.66 in March 2020 to 7.85 in March 2022. This indicates that the company holds a significant amount of cash to meet its short-term obligations without relying on other current assets.
Overall, Silicon Laboratories Inc has demonstrated strong liquidity positions, with current, quick, and cash ratios consistently above industry benchmarks. However, the fluctuations in these ratios highlight the importance of closely monitoring the company's liquidity position to ensure its ability to meet short-term financial commitments.
Additional liquidity measure
| 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 conversion cycle | days | 168.89 | 154.28 | 118.07 | 56.90 | 35.56 | 6.82 | -23.36 | -10.54 | 52.23 | 1.50 | -26.20 | 16.05 | -10.24 | 50.80 | 62.05 | 45.86 | 64.41 | 36.60 | 35.51 | 31.26 |
The cash conversion cycle of Silicon Laboratories Inc has fluctuated over the past few quarters. The company's cash conversion cycle measures the time it takes to convert its investments in raw materials and other resources into cash inflows from sales.
From March 2020 to December 2020, the cash conversion cycle showed signs of inefficiency, with values ranging from 50.80 days to 62.05 days. This indicates that Silicon Laboratories was taking longer to convert its investments into cash during this period.
However, from March 2021 to June 2022, there was a significant improvement in the cash conversion cycle, with negative values seen in some quarters. Negative values suggest that the company was able to convert its investments into cash more quickly than the time it took to pay off its short-term liabilities. This could be a sign of more efficient operations and better management of working capital.
In the most recent quarters, the cash conversion cycle increased significantly, reaching levels above 100 days. This indicates a potential slowdown in cash inflows relative to the time it takes to pay off obligations. Silicon Laboratories may need to assess its working capital management strategies to improve operational efficiency and liquidity.
Overall, Silicon Laboratories' cash conversion cycle has experienced fluctuations, with periods of inefficiency and efficiency. It is essential for the company to monitor and manage its working capital effectively to ensure optimal cash flow and financial health.