Silicon Laboratories Inc (SLAB)

Financial leverage ratio

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
Total assets US$ in thousands 1,222,670 1,249,240 1,249,990 1,344,150 1,443,060 1,475,060 1,518,800 2,161,450 2,169,430 2,336,300 2,419,400 2,843,760 2,958,300 3,639,500 1,896,000 1,870,620 1,993,490 1,943,080 1,923,710 1,971,080
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
Financial leverage ratio 1.13 1.16 1.14 1.15 1.19 1.17 1.21 1.52 1.54 1.51 1.51 1.42 1.34 1.37 1.54 1.55 1.66 1.66 1.66 1.79

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $1,222,670K ÷ $1,080,020K
= 1.13

The financial leverage ratio of Silicon Laboratories Inc has shown a slight decrease from 1.79 as of March 31, 2020, to 1.13 as of December 31, 2024. This indicates a decreasing trend in the company's reliance on debt financing compared to equity over the period analyzed. A lower financial leverage ratio suggests that the company is using less debt to finance its operations, which may indicate a more conservative financial approach. It is important to note that a declining leverage ratio can signify improved financial stability and lower financial risk for the company. However, it is also essential to consider the optimal capital structure for the company's growth and profitability in the long term.