Silicon Laboratories Inc (SLAB)
Interest coverage
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -165,490 | -209,974 | -168,049 | -102,861 | -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 |
| Interest expense (ttm) | US$ in thousands | 1,310 | 1,993 | 3,074 | 4,407 | 5,554 | 6,460 | 6,628 | 6,699 | 6,723 | 11,502 | 16,570 | 21,389 | 31,033 | 32,624 | 34,633 | 39,925 | 34,142 | 31,028 | 27,550 | 20,777 |
| Interest coverage | -126.33 | -105.36 | -54.67 | -23.34 | -4.35 | 11.31 | 13.74 | 15.71 | 17.74 | 8.50 | 3.52 | 0.72 | -1.06 | -1.65 | -1.97 | -2.22 | -2.05 | -5.91 | -4.94 | -4.32 |
December 31, 2024 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-165,490K ÷ $1,310K
= -126.33
The interest coverage ratio of Silicon Laboratories Inc has displayed significant fluctuations over the analyzed periods. Initially, the company faced challenges as its interest coverage ratio was negative, indicating that the company's earnings were insufficient to cover its interest expenses. However, starting from March 31, 2022, the interest coverage ratio improved, with positive values indicating that the company's earnings were more than enough to cover its interest obligations.
The improving trend continued until December 31, 2023, where the interest coverage ratio peaked at 17.74, showcasing a strong ability to meet its interest payments. However, a sharp decline was observed in the subsequent periods, with the ratio turning negative again by March 31, 2024, and deteriorating even further by the end of December 31, 2024.
The negative interest coverage ratios suggest that Silicon Laboratories Inc may be facing challenges in generating sufficient earnings to cover its interest expenses, potentially indicating financial distress or operational difficulties. It is essential for the company to closely monitor its interest coverage ratio and take necessary actions to ensure sustainable and stable financial performance in the future.
Peer comparison
Dec 31, 2024