Silicon Laboratories Inc (SLAB)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 53.42% | 58.88% | 62.74% | 59.01% | 57.71% |
| Operating profit margin | -28.32% | -3.09% | 11.65% | -4.56% | -20.96% |
| Pretax margin | -26.49% | -3.40% | 12.68% | 295.60% | -0.41% |
| Net profit margin | -32.69% | -4.41% | 8.93% | 293.73% | 2.45% |
Based on the provided data, Silicon Laboratories Inc's profitability ratios have shown some fluctuations over the past five years.
1. Gross Profit Margin:
- The gross profit margin has generally trended upwards from 57.71% in December 2020 to 53.42% in December 2024. This indicates that the company is effectively managing its production costs and generating more revenue per dollar of sales.
2. Operating Profit Margin:
- The operating profit margin has exhibited volatility, with significant improvements in 2022 but declines in other years. Despite the positive shift in 2022, the company experienced negative operating profit margins in 2020, 2021, 2023, and 2024, suggesting challenges in controlling operating expenses.
3. Pretax Margin:
- Silicon Laboratories Inc's pretax margin has also been inconsistent, with a substantial improvement in 2021 but negative margins in 2020, 2023, and 2024. The company needs to focus on optimizing its pre-tax earnings relative to its total revenue.
4. Net Profit Margin:
- The net profit margin has been particularly volatile over the years, with a notable surge in 2021 followed by declines in subsequent years. The negative net profit margins in 2023 and 2024 indicate that the company's profitability after accounting for all expenses and taxes has been negatively affected.
In summary, while the gross profit margin has shown improvement, Silicon Laboratories Inc faces challenges in maintaining consistent operating, pre-tax, and net profit margins. The company may need to address cost management and operational efficiencies to enhance its overall profitability in the future.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -13.54% | -1.67% | 5.50% | -1.11% | -5.37% |
| Return on assets (ROA) | -15.62% | -2.39% | 4.21% | 71.57% | 0.63% |
| Return on total capital | -15.32% | -2.00% | 6.16% | -1.48% | -6.57% |
| Return on equity (ROE) | -17.69% | -2.86% | 6.51% | 95.71% | 1.04% |
Silicon Laboratories Inc's profitability ratios have shown fluctuations over the years.
- Operating return on assets (Operating ROA) indicates the company's ability to generate profit from its operating activities in relation to its assets. The ratio improved from -5.37% in 2020 to 5.50% in 2022 but declined in subsequent years, reaching -13.54% in 2024.
- Return on assets (ROA) measures the company's overall profitability relative to its total assets. Silicon Laboratories Inc experienced a significant increase in ROA from 0.63% in 2020 to 71.57% in 2021, but it declined thereafter to -15.62% in 2024.
- Return on total capital reflects the return generated by the company on its total invested capital. Although the ratio improved from -6.57% in 2020 to 6.16% in 2022, it declined in subsequent years, reaching -15.32% in 2024.
- Return on equity (ROE) evaluates the return earned on shareholders' equity. Silicon Laboratories Inc's ROE saw substantial growth from 1.04% in 2020 to 95.71% in 2021, but it decreased in the following years, dropping to -17.69% in 2024.
Overall, Silicon Laboratories Inc's profitability ratios have been volatile, with significant fluctuations in performance levels over the years. Additional analysis and context may be required to understand the underlying reasons for these fluctuations.