Silicon Laboratories Inc (SLAB)

Quick ratio

		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	US$ in thousands	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	227,146	237,056	189,549	231,144
Short-term investments	US$ in thousands	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	498,825	457,879	452,265	382,710
Receivables	US$ in thousands	29,295	102,142	98,256	—	71,437	—	—	—	98,313	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	137,701	132,036	131,037	134,755
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

December 31, 2023 calculation

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

The quick ratio of Silicon Laboratories Inc has shown fluctuations over the past few quarters, ranging from a low of 1.66 to a high of 7.85. The quick ratio measures the company's ability to meet its short-term liabilities with its most liquid assets, excluding inventory.

A quick ratio above 1 indicates that the company has enough liquid assets to cover its short-term liabilities. A higher quick ratio is generally considered favorable as it suggests better liquidity and ability to meet financial obligations. Silicon Laboratories Inc has generally maintained a healthy quick ratio above 2 in most quarters, indicating a strong ability to cover short-term liabilities with readily available assets.

The significant variations in the quick ratio across quarters may indicate fluctuations in the company's liquidity position. It's important to analyze the reasons behind these fluctuations, such as changes in current assets and liabilities, cash management practices, or shifts in business operations.

Overall, a quick ratio above 2.0 is typically considered favorable, and Silicon Laboratories Inc's quick ratio levels indicate a generally strong liquidity position over the analyzed period.