Silicon Laboratories Inc (SLAB)

Financial leverage ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total assets	US$ in thousands	1,443,060	2,169,430	2,958,300	1,993,490	1,674,850
Total stockholders’ equity	US$ in thousands	1,208,680	1,405,010	2,212,420	1,199,840	1,115,050
Financial leverage ratio		1.19	1.54	1.34	1.66	1.50

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,443,060K ÷ $1,208,680K
= 1.19

The financial leverage ratio of Silicon Laboratories Inc has shown some fluctuations over the past five years. The ratio decreased from 1.50 in 2019 to 1.34 in 2021, indicating a reduction in the company's reliance on debt to finance its operations. However, this trend reversed in 2022 when the ratio increased to 1.54, suggesting a higher level of debt relative to equity. In 2023, the financial leverage ratio further increased to 1.19, indicating a continued shift towards higher leverage.

Overall, the fluctuations in Silicon Laboratories Inc's financial leverage ratio suggest varying levels of debt utilization and capital structure management over the years. It is important for the company to carefully monitor its leverage levels to maintain a healthy balance between debt and equity to support sustainable growth and financial stability.