Silicon Laboratories Inc (SLAB)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-24,154	119,260	-32,838	-107,088	-88,643
Total assets	US$ in thousands	1,443,060	2,169,430	2,958,300	1,993,490	1,674,850
Operating ROA		-1.67%	5.50%	-1.11%	-5.37%	-5.29%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-24,154K ÷ $1,443,060K
= -1.67%

Silicon Laboratories Inc's operating return on assets (ROA) has fluctuated over the past five years. In 2023, the company experienced a decline in operating ROA to -1.67%, indicating that for every dollar of assets, the company generated a loss of 1.67 cents from its operations. This decrease in operating ROA raises concerns about the company's operational efficiency and profitability.

In 2022, Silicon Laboratories Inc's operating ROA improved significantly to 5.50%, reflecting a positive trend where the company was able to generate a return of 5.50 cents on every dollar of assets through its operations. This improvement suggests that the company may have enhanced its operational performance and productivity in that year.

However, in 2021, the company's operating ROA declined to -1.11%, indicating a return of negative 1.11 cents on each dollar of assets. This negative trend in operating ROA may signify inefficiencies in the company's operations or challenges in generating profits from its assets.

In 2020 and 2019, Silicon Laboratories Inc recorded negative operating ROA of -5.37% and -5.29% respectively, indicating continued poor performance in generating returns from its assets through operations during those years.

Overall, Silicon Laboratories Inc's operating ROA has been volatile, with fluctuations from positive to negative levels over the years. The company's ability to effectively utilize its assets to generate profits from its operations remains a key area of focus for investors and stakeholders.