Silicon Laboratories Inc (SLAB)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 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 | 0.22 | 0.22 | 0.23 | 0.22 |
| Debt-to-capital ratio | 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 | 0.25 | 0.25 | 0.26 | 0.25 |
| Debt-to-equity ratio | 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 | 0.33 | 0.34 | 0.34 | 0.34 |
| Financial leverage ratio | 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 | 1.50 | 1.51 | 1.52 | 1.53 |
Silicon Laboratories Inc has consistently maintained a low level of leverage and debt in relation to its assets, capital, and equity over the period analyzed. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have been at or close to 0 for most quarters, indicating minimal reliance on debt financing to support its operations.
The financial leverage ratio, which incorporates a broader measure of financial obligations, has shown some fluctuation but generally remained below 2, indicating a conservative capital structure and lower financial risk for the company. This suggests that Silicon Laboratories Inc has a strong financial position and is less vulnerable to financial distress or default.
Overall, the solvency ratios reflect the company's prudent financial management and conservative approach towards debt, which may provide stability and flexibility in its financial operations in the long term.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -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 | -4.38 | 3.03 | 3.13 | 3.32 |
The interest coverage ratio for Silicon Laboratories Inc fluctuated over the past few years, with some periods showing strong coverage and others indicating potential financial strain. The ratio measures the company's ability to meet its interest payments on debt obligations from its operating income. A higher ratio indicates that the company is more capable of covering its interest expenses.
Looking at the data, we can see that Silicon Laboratories Inc experienced a significant decline in interest coverage in the first quarter of 2022, with a ratio of just 0.72. This could signal a potential liquidity issue or increased financial risk during that period. However, the ratio improved in subsequent quarters, reaching a peak of 17.74 in the fourth quarter of 2022, indicating a strong ability to cover interest payments.
In the most recent quarter, the interest coverage ratio dropped to -4.35, which suggests a negative coverage, indicating that the company may not be generating enough operating income to cover its interest expenses. This negative trend raises concerns about the company's financial health and ability to service its debt obligations.
Based on the fluctuating interest coverage ratios, it is advisable for investors and stakeholders to closely monitor Silicon Laboratories Inc's financial performance and debt management practices to assess the company's ability to meet its interest payments and sustain long-term financial stability.