Silicon Laboratories Inc (SLAB)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.24 | 0.00 | 0.22 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.27 | 0.00 | 0.26 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.38 | 0.00 | 0.36 |
| Financial leverage ratio | 1.13 | 1.19 | 1.54 | 1.34 | 1.66 |
Silicon Laboratories Inc's solvency ratios indicate a strong financial position with consistently low levels of debt in relation to its assets, capital, and equity. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio were all at 0.00 for the years ending December 31, 2021, 2023, and 2024, reflecting that the company had no debt relative to these respective metrics during those periods.
Furthermore, the Financial leverage ratio decreased steadily from 1.66 in 2020 to 1.13 in 2024, suggesting a decline in the company's reliance on debt financing over time. This reduction in financial leverage indicates that Silicon Laboratories has been managing its debt levels effectively and increasing its financial stability.
Overall, Silicon Laboratories Inc appears to have a robust balance sheet and a conservative approach to debt management, which bodes well for its long-term solvency and financial health.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | -126.33 | -4.35 | 17.74 | -1.06 | -3.14 |
The interest coverage ratio for Silicon Laboratories Inc has displayed substantial volatility over the years. As of December 31, 2020, the company's interest coverage ratio was negative at -3.14, indicating that its operating income was insufficient to cover its interest expenses. This continued into December 31, 2021, with a further decline to -1.06, signaling a worsening financial position in terms of meeting interest obligations.
However, there was a significant turnaround in the company's financial health by December 31, 2022, with an interest coverage ratio of 17.74. This implies that Silicon Laboratories Inc generated ample operating income to comfortably cover its interest payments during that period. Nonetheless, the situation deteriorated again by December 31, 2023, with the interest coverage ratio dropping to -4.35, suggesting a concerning level of financial strain.
The most recent data point as of December 31, 2024, reveals an alarming interest coverage ratio of -126.33, indicating a severe inadequacy of operating earnings to service the company's interest expenses. This sharp decline raises concerns about Silicon Laboratories Inc's ability to meet its debt obligations and may reflect underlying financial challenges or inefficiencies. Overall, the fluctuating trend in the interest coverage ratio underscores the importance of closely monitoring the company's financial performance and debt management strategies.