Silicon Laboratories Inc (SLAB)
Return on total capital
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -24,154 | 119,260 | -32,838 | -107,088 | -88,643 |
| Long-term debt | US$ in thousands | — | 529,573 | — | 428,945 | 368,257 |
| Total stockholders’ equity | US$ in thousands | 1,208,680 | 1,405,010 | 2,212,420 | 1,199,840 | 1,115,050 |
| Return on total capital | -2.00% | 6.16% | -1.48% | -6.57% | -5.98% |
December 31, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-24,154K ÷ ($—K + $1,208,680K)
= -2.00%
Silicon Laboratories Inc's return on total capital has been fluctuating over the past five years. In 2023, the company's return on total capital was negative at -2.00%, indicating that the company's net income generated from both debt and equity capital was insufficient to cover the cost of that capital. This represents a decrease from the previous year's return of 6.16%.
Looking back further, there was also a negative return on total capital in 2021 and 2020, at -1.48% and -6.57% respectively. This indicates ongoing challenges in effectively utilizing the company's capital to generate profits during those years.
Overall, Silicon Laboratories Inc's return on total capital has shown inconsistency and volatility, with negative returns in three out of the past five years. This suggests that the company may be facing difficulties in maximizing returns on its invested capital and may warrant further investigation into the efficiency of its capital allocation strategies.
Peer comparison
Dec 31, 2023