Silicon Laboratories Inc (SLAB)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -191,010 | -34,516 | 91,402 | 2,117,400 | 12,531 |
| Total stockholders’ equity | US$ in thousands | 1,080,020 | 1,208,680 | 1,405,010 | 2,212,420 | 1,199,840 |
| ROE | -17.69% | -2.86% | 6.51% | 95.71% | 1.04% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-191,010K ÷ $1,080,020K
= -17.69%
Silicon Laboratories Inc's return on equity (ROE) has shown significant fluctuations over the years. In 2020, the ROE was a mere 1.04%, indicating low profitability relative to shareholders' equity. However, there was a remarkable improvement in 2021, with ROE surging to 95.71%, reflecting a substantial increase in profitability compared to the equity invested by shareholders.
In 2022, the ROE decreased to 6.51%, suggesting a decline in profitability from the previous year but still maintaining a positive return. The trend reversed in 2023, with a negative ROE of -2.86%, indicating that the company's net income was insufficient to cover the equity invested by shareholders. This negative trend continued in 2024, with ROE dropping further to -17.69%, highlighting a significant decline in profitability and potentially concerning financial performance.
Overall, Silicon Laboratories Inc's ROE has been volatile, demonstrating both periods of strong profitability and periods of poor performance. It is essential for investors and analysts to closely monitor these fluctuations and assess the company's financial health and operational efficiency.
Peer comparison
Dec 31, 2024