Silicon Laboratories Inc (SLAB)
Operating profit margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | -165,490 | -24,154 | 119,260 | -32,838 | -107,088 |
| Revenue | US$ in thousands | 584,386 | 782,258 | 1,024,110 | 720,860 | 510,928 |
| Operating profit margin | -28.32% | -3.09% | 11.65% | -4.56% | -20.96% |
December 31, 2024 calculation
Operating profit margin = Operating income ÷ Revenue
= $-165,490K ÷ $584,386K
= -28.32%
Silicon Laboratories Inc's operating profit margin has shown fluctuating trends over the past five years. Initially, the company reported a negative operating profit margin of -20.96% as of December 31, 2020. This indicates that the company was experiencing operating losses relative to its revenue during that period.
However, there was an improvement in the operating profit margin in the following years. By December 31, 2021, the operating profit margin improved to -4.56%, although it still remained negative. Subsequently, the company's operating profit margin turned positive, reaching 11.65% by December 31, 2022. This signifies that Silicon Laboratories Inc was able to generate operating profits relative to its revenue in 2022, showing a significant turnaround.
Unfortunately, this positive trend was short-lived as the operating profit margin declined to -3.09% by December 31, 2023, indicating a decrease in operating profitability compared to the previous year. The company's performance worsened further, with a significant drop in the operating profit margin to -28.32% by December 31, 2024.
Overall, Silicon Laboratories Inc's operating profit margin has been volatile, reflecting fluctuations in the company's operational efficiency and profitability over the past five years. The company should closely monitor its cost structures and revenue streams to sustainably improve its operating profit margin and drive long-term financial performance.
Peer comparison
Dec 31, 2024