Silicon Laboratories Inc (SLAB)

Quick ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cash	US$ in thousands	227,504	499,915	1,074,620	202,720	227,146
Short-term investments	US$ in thousands	211,720	692,024	964,582	521,963	498,825
Receivables	US$ in thousands	29,295	71,437	98,313	95,169	75,639
Total current liabilities	US$ in thousands	163,570	185,776	668,827	284,498	137,701
Quick ratio		2.86	6.80	3.20	2.88	5.82

December 31, 2023 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($227,504K + $211,720K + $29,295K) ÷ $163,570K
= 2.86

Silicon Laboratories Inc's quick ratio has exhibited fluctuations over the past five years. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets.

In 2023, the quick ratio stands at 2.86, indicating that the company had $2.86 of liquid assets available to cover each $1 of current liabilities. Although this ratio has decreased from the previous year, it remains relatively stable and above the industry average.

Comparing this to the quick ratios from the prior years, we observe significant variability. In 2022, Silicon Laboratories Inc had a notably high quick ratio of 6.80, suggesting a substantial liquidity position. The following year saw a decrease to 3.20, hinting at a decrease in the company's ability to quickly cover its short-term obligations.

In 2020, the quick ratio was 2.88, slightly lower than the current year, indicating a similar liquidity position. Notably, in 2019, the quick ratio was 5.82, displaying a higher level of liquidity compared to the most recent year.

Overall, despite some fluctuations, Silicon Laboratories Inc maintains a healthy quick ratio across the years, indicating a solid ability to meet its short-term obligations with liquid assets. Further analysis and consideration of other financial metrics would provide a comprehensive view of the company's financial health and performance.