Silicon Laboratories Inc (SLAB)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.24 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.22 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.27 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.26 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.38 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.36 | 0.00 | 0.00 | 0.00 |
| 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 |
Silicon Laboratories Inc has demonstrated a consistently low debt-to-assets ratio over the years, indicating a strong ability to cover its obligations with its assets. However, there was a slight increase in the ratio in the most recent period, pointing to a small portion of the assets being financed by debt.
The debt-to-capital ratio has also been minimal, suggesting that the company relies very little on external funding in relation to its overall capital structure. This fiscal prudence helps in reducing financial risk and enhancing financial stability.
Similarly, the debt-to-equity ratio has remained at negligible levels, showcasing a healthy balance between debt and equity financing. The company's capital structure appears to be predominantly equity-based, which can be considered favorable for long-term financial health.
The financial leverage ratio has fluctuated over the years but has generally trended downwards, indicating decreasing financial risk and reliance on debt financing. This reduction in leverage suggests improved solvency and lower vulnerability to financial distress.
Overall, Silicon Laboratories Inc's solvency ratios reflect a strong financial position with minimal debt levels and a prudent approach to capital structure management, positioning the company well for sustainable growth and resilience in the face of economic uncertainties.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Silicon Laboratories Inc's interest coverage ratio has experienced significant volatility over the provided period. The company's interest coverage was negative for a prolonged period, indicating that the company was not generating enough operating income to cover its interest expenses. This persistent negative trend raised concerns about the company's ability to meet its debt obligations.
However, starting from March 31, 2022, there was a notable improvement in Silicon Laboratories Inc's interest coverage ratio. The ratio turned positive, indicating that the company's operating income was finally surpassing its interest expenses. This positive trend continued to strengthen over the subsequent quarters, showcasing a more sustainable financial position.
By the end of December 31, 2024, the interest coverage ratio had significantly improved, reaching a healthy level. The substantial increase in the ratio from negative double digits to positive values demonstrates the company's successful efforts in enhancing its operational performance and managing its debt obligations more effectively.
Overall, Silicon Laboratories Inc's interest coverage ratio demonstrates a transformative journey from financial distress to a more stable and sound financial footing, showcasing the company's resilience and ability to overcome challenges in its financial structure.