Silicon Laboratories Inc (SLAB)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.24 | 0.00 | 0.22 | 0.22 |
| Debt-to-capital ratio | 0.00 | 0.27 | 0.00 | 0.26 | 0.25 |
| Debt-to-equity ratio | 0.00 | 0.38 | 0.00 | 0.36 | 0.33 |
| Financial leverage ratio | 1.19 | 1.54 | 1.34 | 1.66 | 1.50 |
Silicon Laboratories Inc's solvency ratios exhibit a strong financial position over the past five years. The debt-to-assets ratio has steadily declined, reaching 0.00 in 2023 and 2021, indicating the company relies less on debt financing relative to its total assets. This trend also holds for the debt-to-capital and debt-to-equity ratios, which both show a consistent decreasing pattern over the same period.
The financial leverage ratio, which measures the company's reliance on debt to finance its operations, fluctuated but trended downwards overall. In 2023, the financial leverage ratio stood at 1.19, suggesting a lower level of financial risk compared to previous years.
These solvency ratios collectively suggest that Silicon Laboratories Inc has effectively managed its debt levels and maintained a healthy balance sheet structure. The decreasing trend in debt-related ratios indicates a conservative approach to leverage, contributing to the company's overall stability and ability to meet its financial obligations.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | -4.35 | 17.74 | -1.06 | -3.14 | -4.38 |
The interest coverage ratio of Silicon Laboratories Inc has exhibited significant fluctuations over the past five years. In particular, the company had positive interest coverage ratios in 2022 and 2019, indicating its ability to comfortably cover its interest expenses with earnings. However, in 2023, the interest coverage ratio deteriorated substantially to -4.35, suggestive of a situation where the company's earnings may not be adequate to cover its interest obligations. Similarly, in 2021, 2020, and 2019, the interest coverage ratios were negative as well, reflecting a concerning trend of insufficient earnings to meet interest payments. This fluctuation in the interest coverage ratio over the years may indicate varying levels of financial risk and operational performance within Silicon Laboratories Inc.