Silicon Laboratories Inc (SLAB)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-34,516	91,402	2,117,400	12,531	19,265
Total stockholders’ equity	US$ in thousands	1,208,680	1,405,010	2,212,420	1,199,840	1,115,050
ROE		-2.86%	6.51%	95.71%	1.04%	1.73%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-34,516K ÷ $1,208,680K
= -2.86%

Silicon Laboratories Inc's return on equity (ROE) has fluctuated significantly over the past five years. In 2023, the company reported a negative ROE of -2.86%, indicating that the company generated a negative return for its shareholders' equity during that period. This was a considerable decline from the previous year, when the ROE stood at 6.51%.

The most notable performance in terms of ROE was observed in 2021, with an impressive ROE of 95.71%. This exceptional figure suggests that the company was highly efficient in utilizing shareholder equity to generate profits during that year. However, this performance was not sustained, as evidenced by the substantial drop in ROE in subsequent years.

The ROE figures for 2020 and 2019 were relatively low at 1.04% and 1.73% respectively, indicating that the company's profitability and efficiency in generating returns from shareholder equity were modest during those years.

Overall, the fluctuating ROE figures suggest a lack of consistency in Silicon Laboratories Inc's ability to generate profits relative to shareholder equity over the past five years. Further analysis of the company's financial performance and operational efficiency may be necessary to understand the underlying factors driving these fluctuations.