Silicon Laboratories Inc (SLAB)

Return on total capital

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-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	-88,643	61,830	63,140	66,585
Long-term debt	US$ in thousands	—	—	—	—	529,573	—	—	—	—	—	—	—	428,945	—	—	—	368,257	364,802	361,430	358,093
Total stockholders’ equity	US$ in thousands	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	1,115,050	1,083,750	1,051,270	1,057,480
Return on total capital		-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%	-5.98%	4.27%	4.47%	4.70%

December 31, 2023 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-24,154K ÷ ($—K + $1,208,680K)
= -2.00%

Return on total capital is a key financial ratio that measures how effectively a company is generating profits from the capital invested in the business. Silicon Laboratories Inc's return on total capital has varied over the past several quarters.

The company experienced a low return on total capital in the first quarter of 2020, with a value of -15.69%. However, this improved over the next few quarters, with a negative trend also seen at the beginning of 2021. Notably, in the second quarter of 2023, the return on total capital reached its highest level at 7.23%.

Overall, Silicon Laboratories Inc's return on total capital has been volatile, moving between negative and positive values. It is essential for the company to closely monitor and manage its capital allocation to sustain and improve its profitability in the long term.