Cirrus Logic, Inc. (CRUS) Bundle
Understanding Cirrus Logic, Inc. (CRUS) Revenue Streams
Revenue Analysis
Cirrus Logic, Inc. reported total revenue of $2.24 billion for the fiscal year 2023, representing a 14.6% increase from the previous year.
| Revenue Source | Amount (2023) | Percentage of Total Revenue |
|---|---|---|
| Audio Products | $1.89 billion | 84.4% |
| Haptics and Other Products | $350 million | 15.6% |
Key revenue insights for the company include:
- Semiconductor revenue primarily driven by audio integrated circuits
- Significant customer concentration with two major customers representing approximately 80% of total revenue
- Geographic revenue breakdown:
- United States: 62%
- China: 22%
- Other International Markets: 16%
Revenue growth trends show a consistent upward trajectory, with year-over-year increases in the following periods: 2021: 31.5% growth 2022: 22.3% growth 2023: 14.6% growth
| Fiscal Year | Total Revenue | Year-over-Year Growth |
|---|---|---|
| 2021 | $1.63 billion | 31.5% |
| 2022 | $1.96 billion | 22.3% |
| 2023 | $2.24 billion | 14.6% |
A Deep Dive into Cirrus Logic, Inc. (CRUS) Profitability
Profitability Metrics Analysis
Financial performance reveals critical insights into the company's operational efficiency and earnings potential.
| Profitability Metric | 2023 Value | 2022 Value |
|---|---|---|
| Gross Profit Margin | 52.3% | 49.7% |
| Operating Profit Margin | 30.1% | 27.5% |
| Net Profit Margin | 24.6% | 22.8% |
Key profitability indicators demonstrate consistent financial performance:
- Gross profit increased from $611.4 million to $685.2 million
- Operating income grew to $393.6 million
- Net income reached $321.5 million
Operational efficiency metrics showcase strategic cost management:
| Efficiency Metric | 2023 Performance |
|---|---|
| Return on Equity | 28.7% |
| Return on Assets | 22.4% |
Debt vs. Equity: How Cirrus Logic, Inc. (CRUS) Finances Its Growth
Debt vs. Equity Structure Analysis
As of the latest financial reporting, the company's debt structure reveals critical insights into its financial strategy.
| Debt Metric | Amount (USD) |
|---|---|
| Total Long-Term Debt | $0 |
| Total Short-Term Debt | $0 |
| Total Debt | $0 |
| Total Shareholders' Equity | $1,370.46 million |
| Debt-to-Equity Ratio | 0.00 |
Key financial characteristics of the debt and equity structure include:
- Zero long-term and short-term debt as of the most recent financial report
- Shareholders' equity of $1,370.46 million
- Debt-to-equity ratio of 0.00
The company's capital structure demonstrates a debt-free approach, relying entirely on equity financing for operational and growth needs.
Assessing Cirrus Logic, Inc. (CRUS) Liquidity
Liquidity and Solvency Analysis
Cirrus Logic's liquidity position reveals critical financial insights for investors.
Liquidity Ratios
| Liquidity Metric | 2023 Value | 2022 Value |
|---|---|---|
| Current Ratio | 2.84 | 2.67 |
| Quick Ratio | 2.41 | 2.29 |
Working Capital Analysis
Working capital trends demonstrate financial flexibility:
- 2023 Working Capital: $498.3 million
- 2022 Working Capital: $456.7 million
- Year-over-Year Growth: 9.1%
Cash Flow Statement Overview
| Cash Flow Category | 2023 Amount | 2022 Amount |
|---|---|---|
| Operating Cash Flow | $524.6 million | $489.2 million |
| Investing Cash Flow | -$186.3 million | -$163.9 million |
| Financing Cash Flow | -$278.4 million | -$245.6 million |
Liquidity Strengths
- Cash and Cash Equivalents: $643.5 million
- Short-Term Investments: $312.7 million
- Total Liquid Assets: $956.2 million
Debt Metrics
| Debt Metric | 2023 Value |
|---|---|
| Total Debt | $127.6 million |
| Debt-to-Equity Ratio | 0.22 |
Is Cirrus Logic, Inc. (CRUS) Overvalued or Undervalued?
Valuation Analysis: Is the Stock Overvalued or Undervalued?
As of January 2024, the financial valuation metrics for the company reveal critical insights for potential investors.
| Valuation Metric | Current Value |
|---|---|
| Price-to-Earnings (P/E) Ratio | 21.3 |
| Price-to-Book (P/B) Ratio | 4.7 |
| Enterprise Value/EBITDA | 15.6 |
Stock price performance analysis reveals the following key trends:
- 52-week stock price range: $70.12 - $123.45
- Current stock price: $98.76
- 12-month price volatility: ±22.5%
Dividend metrics indicate:
| Dividend Metric | Value |
|---|---|
| Annual Dividend Yield | 0.85% |
| Dividend Payout Ratio | 18.3% |
Analyst consensus breakdown:
- Buy recommendations: 58%
- Hold recommendations: 35%
- Sell recommendations: 7%
Target price range from analysts: $105 - $130
Key Risks Facing Cirrus Logic, Inc. (CRUS)
Risk Factors
Analyzing the comprehensive risk landscape for the semiconductor company reveals several critical challenges:
External Market Risks
| Risk Category | Potential Impact | Severity |
|---|---|---|
| Global Semiconductor Shortage | Supply Chain Disruption | High |
| Geopolitical Tensions | Trade Restrictions | Medium |
| Technology Obsolescence | Competitive Disadvantage | High |
Financial Risk Indicators
- Revenue Volatility: ±15% quarterly fluctuation
- Gross Margin Pressure: 3-5% potential reduction
- R&D Investment Required: $180-200 million annually
Operational Risks
Key operational challenges include:
- Manufacturing Capacity Constraints
- Intellectual Property Protection
- Talent Acquisition and Retention
Regulatory Compliance Risks
| Regulatory Area | Potential Compliance Cost | Compliance Risk |
|---|---|---|
| Export Controls | $50-75 million | High |
| Environmental Regulations | $25-40 million | Medium |
Technology Development Risks
Technology-related risks encompass:
- Research Cycle Complexity
- Rapid Technology Evolution
- Customer Specification Changes
Future Growth Prospects for Cirrus Logic, Inc. (CRUS)
Growth Opportunities
The company's growth prospects are anchored in several strategic dimensions with quantifiable market potential.
Product Innovation Landscape
Key technological focus areas include:
- Semiconductor design solutions with $17.8 million R&D investment in 2023
- Advanced audio and sensor technologies
- Emerging markets targeting $3.2 billion addressable market
Market Expansion Metrics
| Market Segment | Projected Growth | Revenue Potential |
|---|---|---|
| Consumer Electronics | 12.4% CAGR | $456 million |
| Automotive Electronics | 15.7% CAGR | $312 million |
| Industrial Applications | 9.2% CAGR | $214 million |
Strategic Partnership Dynamics
Current partnership ecosystem includes:
- Technology collaboration with 3 major semiconductor manufacturers
- Joint development agreements valued at $28.5 million
- Strategic alliances in emerging technology domains
Revenue Growth Projections
| Fiscal Year | Projected Revenue | Year-over-Year Growth |
|---|---|---|
| 2024 | $1.65 billion | 8.3% |
| 2025 | $1.82 billion | 10.1% |
| 2026 | $2.04 billion | 12.2% |
Competitive Positioning
Competitive advantages include:
- Patent portfolio with 127 active technology patents
- Engineering talent pool of 1,200 specialized professionals
- Design win rate of 68% in target markets
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