Silicon Laboratories Inc (SLAB)
Liquidity ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Current ratio | 6.15 | 5.19 | 5.99 | 5.80 | 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 |
| Quick ratio | 4.46 | 3.54 | 3.80 | 3.28 | 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 |
| 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 |
Silicon Laboratories Inc's liquidity ratios demonstrate a consistent trend of strong liquidity position over the period under review. The current ratio has fluctuated significantly, starting at 2.79 in March 2020, peaking at 8.62 in March 2022, and then declining to 6.15 in December 2024. This indicates that the company has generally had more than enough current assets to cover its current liabilities, with the ability to pay off short-term obligations comfortably.
The quick ratio, which excludes inventory from current assets, also exhibits a similar pattern of strong liquidity. The ratio ranged from 1.66 in March 2023 to 7.85 in March 2022, providing further evidence of the company's ability to meet its short-term obligations without relying on potentially illiquid inventory.
The cash ratio, which considers only the most liquid assets (cash and cash equivalents) against current liabilities, tells a similar story of robust liquidity. The ratio varied between 1.66 in March 2023 and 7.85 in March 2022, reflecting the company's capacity to settle its current liabilities using its readily available cash resources.
Overall, based on these liquidity ratios, Silicon Laboratories Inc appears to maintain a healthy liquidity position, showcasing the ability to meet its short-term financial commitments effectively.
Additional liquidity measure
| 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 conversion cycle | days | 118.76 | 180.12 | 214.53 | 218.78 | 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 |
The cash conversion cycle for Silicon Laboratories Inc shows fluctuations over the quarters, reflecting the company's efficiency in managing its working capital.
In March 2020, the company had a cash conversion cycle of 45.86 days, indicating that it took approximately 46 days to convert its investments in inventory and accounts receivable into cash. By June 2020, the cycle increased to 62.05 days, suggesting a longer period to realize cash from its operating cycle.
Interestingly, in December 2020 and June 2021, the cash conversion cycle turned negative at -10.24 days and -26.20 days, respectively. This implies that the company was able to collect cash from customers before paying its suppliers, reflecting efficient working capital management.
The cycle turned positive again in subsequent quarters, indicating a need for investments in inventory and accounts receivable before realizing cash. By December 2024, the cycle decreased to 118.76 days, suggesting an improvement in working capital efficiency compared to the peaks seen in March 2024 and June 2024.
Overall, the trends in Silicon Laboratories Inc's cash conversion cycle indicate varying levels of efficiency in managing working capital during the analyzed period, with the company showing both strengths and areas for potential improvement in its cash conversion processes.