Silicon Laboratories (SLAB) has disclosed a new risk, in the Debt & Financing category.
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Silicon Laboratories faces potential operational and financial risks due to its credit agreement and other indebtedness, which could be exacerbated by their dependency on future performance influenced by economic conditions and industry cycles beyond their control. The company received a waiver in May 2024, exempting it from an interest coverage test through March 2025, despite having no outstanding debt at that time. However, failure to adhere to or secure waivers for the covenants might restrict their borrowing capabilities, and any covenant breach could result in immediate debt repayment demands. These factors underscore the precarious nature of their financial stability if external conditions or compliance issues arise.
Overall, Wall Street has a Moderate Buy consensus rating on SLAB stock based on 5 Buys and 3 Holds.
To learn more about Silicon Laboratories’ risk factors, click here.
