Silicon Laboratories Return On Equity vs. Revenue
| SLAB Stock | USD 108.78 1.15 1.07% |
Return On Equity | First Reported 2010-12-31 | Previous Quarter 0.0748 | Current Value 0.0889 | Quarterly Volatility 0.06991709 |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.66 | 0.72 |
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For Silicon Laboratories profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Silicon Laboratories to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Silicon Laboratories utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Silicon Laboratories's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Silicon Laboratories over time as well as its relative position and ranking within its peers.
Silicon |
Is Semiconductors & Semiconductor Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Silicon Laboratories. If investors know Silicon will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Silicon Laboratories listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.47) | Earnings Share (7.48) | Revenue Per Share 15.757 | Quarterly Revenue Growth (0.18) | Return On Assets (0.09) |
The market value of Silicon Laboratories is measured differently than its book value, which is the value of Silicon that is recorded on the company's balance sheet. Investors also form their own opinion of Silicon Laboratories' value that differs from its market value or its book value, called intrinsic value, which is Silicon Laboratories' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Silicon Laboratories' market value can be influenced by many factors that don't directly affect Silicon Laboratories' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Silicon Laboratories' value and its price as these two are different measures arrived at by different means. Investors typically determine if Silicon Laboratories is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Silicon Laboratories' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Silicon Laboratories Revenue vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Silicon Laboratories's current stock value. Our valuation model uses many indicators to compare Silicon Laboratories value to that of its competitors to determine the firm's financial worth. Silicon Laboratories is rated second in return on equity category among its peers. It is rated below average in revenue category among its peers . At present, Silicon Laboratories' Return On Equity is projected to slightly decrease based on the last few years of reporting. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Silicon Laboratories' earnings, one of the primary drivers of an investment's value.Silicon Revenue vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
Silicon Laboratories |
| = | -0.2 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Silicon Laboratories |
| = | 782.26 M |
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include products or services discounts, promotions, as well as early payments on invoices or services rendered in advance.
Silicon Revenue vs Competition
Silicon Laboratories is rated below average in revenue category among its peers. Market size based on revenue of Information Technology industry is at this time estimated at about 137.47 Billion. Silicon Laboratories maintains roughly 782.26 Million in revenue contributing less than 1% to equities under Information Technology industry.
Silicon Laboratories Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Silicon Laboratories, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Silicon Laboratories will eventually generate negative long term returns. The profitability progress is the general direction of Silicon Laboratories' change in net profit over the period of time. It can combine multiple indicators of Silicon Laboratories, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -1 M | -1.1 M | |
| Operating Income | -24.2 M | -22.9 M | |
| Income Before Tax | -10.5 M | -10 M | |
| Total Other Income Expense Net | 13.6 M | 14.3 M | |
| Net Loss | -34.5 M | -32.8 M | |
| Income Tax Expense | 7.9 M | 14.3 M | |
| Net Income Applicable To Common Shares | 105.1 M | 155.1 M | |
| Net Income From Continuing Ops | 60.6 M | 34.7 M | |
| Non Operating Income Net Other | 19.9 M | 20.9 M | |
| Interest Income | 19.9 M | 11.7 M | |
| Net Interest Income | 13.4 M | 14.1 M | |
| Change To Netincome | -27.5 M | -28.9 M | |
| Net Income Per Share | 3.00 | 3.15 | |
| Income Quality | 0.71 | 0.67 | |
| Net Income Per E B T | 0.65 | 0.82 |
Silicon Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Silicon Laboratories. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Silicon Laboratories position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Silicon Laboratories' important profitability drivers and their relationship over time.
Use Silicon Laboratories in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Silicon Laboratories position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Silicon Laboratories will appreciate offsetting losses from the drop in the long position's value.Silicon Laboratories Pair Trading
Silicon Laboratories Pair Trading Analysis
The ability to find closely correlated positions to Silicon Laboratories could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Silicon Laboratories when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Silicon Laboratories - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Silicon Laboratories to buy it.
The correlation of Silicon Laboratories is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Silicon Laboratories moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Silicon Laboratories moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Silicon Laboratories can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Silicon Laboratories position
In addition to having Silicon Laboratories in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
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Check out World Market Map. For information on how to trade Silicon Stock refer to our How to Trade Silicon Stock guide.You can also try the Portfolio Volatility module to check portfolio volatility and analyze historical return density to properly model market risk.
To fully project Silicon Laboratories' future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Silicon Laboratories at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Silicon Laboratories' income statement, its balance sheet, and the statement of cash flows.