Silicon Laboratories Inc (SLAB)

Return on total capital

Dec 31, 2024 Sep 30, 2024 Jun 30, 2024 Mar 31, 2024 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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands -165,490 -209,974 -168,049 -102,861 -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
Long-term debt US$ in thousands — — — — — — — — 529,573 — — — — — — — 428,945 — — —
Total stockholders’ equity US$ in thousands 1,080,020 1,081,390 1,093,030 1,165,560 1,208,680 1,259,920 1,258,900 1,419,450 1,405,010 1,551,640 1,605,340 2,007,660 2,212,420 2,647,580 1,227,750 1,206,980 1,199,840 1,170,050 1,157,650 1,099,600
Return on total capital -15.32% -19.42% -15.37% -8.83% -2.00% 5.80% 7.23% 7.41% 6.16% 6.30% 3.63% 0.77% -1.48% -2.04% -5.56% -7.33% -4.29% -15.69% -11.76% -8.17%

December 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-165,490K ÷ ($—K + $1,080,020K)
= -15.32%

Silicon Laboratories Inc's return on total capital has shown a fluctuating trend over the analyzed periods. It started at negative levels in March 2020, deteriorated further by December 2020, and remained in negative territory until June 2022. From March 2022 onwards, there was a significant improvement in the return on total capital, reaching a peak of 7.41% in March 2023. However, this positive trend was not sustained, as the return declined in the subsequent quarters, dropping to -15.32% by December 2024. Overall, the company's return on total capital exhibits significant variability, indicating potential challenges in effectively utilizing its total capital to generate returns for shareholders.