Silicon Laboratories Inc (SLAB)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -165,490 | -24,154 | 119,260 | -32,838 | -107,088 |
| Long-term debt | US$ in thousands | — | — | 529,573 | — | 428,945 |
| Total stockholders’ equity | US$ in thousands | 1,080,020 | 1,208,680 | 1,405,010 | 2,212,420 | 1,199,840 |
| Return on total capital | -15.32% | -2.00% | 6.16% | -1.48% | -6.57% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-165,490K ÷ ($—K + $1,080,020K)
= -15.32%
Silicon Laboratories Inc's return on total capital has displayed a mixed performance over the past five years. In December 2020, the return on total capital was negative at -6.57%, indicating a lower profitability relative to the capital employed. The company then improved its return on total capital to -1.48% in December 2021, still negative but showing some progress.
By December 2022, Silicon Laboratories Inc achieved a positive return on total capital of 6.16%, signaling an increase in profitability relative to the total capital invested. However, this positive trend was short-lived, as the return on total capital decreased to -2.00% by December 2023, indicating a decline in profitability.
The most recent data point as of December 2024 shows a significant decline in return on total capital to -15.32%, highlighting a substantial decrease in profitability compared to the total capital employed. Overall, while Silicon Laboratories Inc demonstrated some improvements in profitability over the years, the volatility in the return on total capital raises concerns about the company's ability to efficiently utilize its capital to generate returns for investors.
Peer comparison
Dec 31, 2024