Silicon Laboratories Inc (SLAB)

Operating return on assets (Operating ROA)

		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
Operating income (ttm)	US$ in thousands	-24,154	73,032	91,038	105,250	119,260	97,824	58,326	15,460	-32,838	-53,888	-68,212	-88,488	-69,826	-183,526	-136,107	-89,788	-88,643	61,830	63,140	66,585
Total assets	US$ in thousands	1,443,060	1,475,060	1,518,800	2,161,450	2,169,430	2,336,300	2,419,400	2,843,760	2,958,300	3,639,500	1,896,000	1,870,620	1,993,490	1,943,080	1,923,710	1,971,080	1,674,850	1,637,180	1,602,940	1,621,930
Operating ROA		-1.67%	4.95%	5.99%	4.87%	5.50%	4.19%	2.41%	0.54%	-1.11%	-1.48%	-3.60%	-4.73%	-3.50%	-9.45%	-7.08%	-4.56%	-5.29%	3.78%	3.94%	4.11%

December 31, 2023 calculation

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

Operating return on assets (ROA) is a key financial ratio that measures a company's ability to generate profits from its operational assets. Silicon Laboratories Inc's operating ROA has shown fluctuations over the past 20 quarters.

From March 2019 to June 2020, the operating ROA remained negative, indicating that the company was not effectively generating profits from its assets. However, starting from September 2020, there was a significant improvement in the operating ROA, with values ranging from -1.11% to 5.99% by June 2023.

The positive trend in operating ROA suggests that Silicon Laboratories Inc has been more efficient in utilizing its operational assets to generate profits, which is a positive sign for investors and stakeholders. However, the negative values in some quarters highlight potential challenges or inefficiencies in the company's operations during those periods.

Overall, the varying levels of operating ROA indicate the company's ability to generate profits from its operational assets has fluctuated over the past few years, and continued monitoring of this ratio is essential to assess the company's operational efficiency and financial performance accurately.