Sitime Corporation (SITM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	6,106	8,489	16,637	96,275	9,468	16,711	30,375	38,265	34,603	41,608	580,291	571,454	559,461	267,042	253,538	256,952	73,525	69,208	102,486	71,248
Short-term investments	US$ in thousands	412,728	426,307	435,881	421,006	518,733	551,398	544,299	537,818	529,494	522,178	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	108,449	94,920	80,363	119,397	121,394	31,280	30,462	25,206	33,794	35,004	43,617	34,073	37,385	33,436	23,739	21,740	19,145	17,565	48,337	62,335
Cash ratio		3.86	4.58	5.63	4.33	4.35	18.16	18.87	22.85	16.69	16.11	13.30	16.77	14.96	7.99	10.68	11.82	3.84	3.94	2.12	1.14

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($6,106K + $412,728K) ÷ $108,449K
= 3.86

The cash ratio of Sitime Corporation has shown fluctuations over the period from March 31, 2020, to December 31, 2024. The cash ratio measures the company's ability to cover its current liabilities with its cash and cash equivalents.

At the start of the analysis in March 31, 2020, the cash ratio was at 1.14, indicating that Sitime had just enough cash to cover 114% of its current liabilities at that time. However, the ratio improved over the next few quarters, reaching a peak of 22.85 on March 31, 2023. This significant increase suggests a substantial improvement in Sitime's ability to cover its short-term obligations with its cash reserves.

Subsequently, there was a decline in the cash ratio from March 31, 2023, to December 31, 2024. The ratio dropped to 3.86 by the end of December 31, 2024, signaling a decrease in the company's liquidity compared to the peak in March 31, 2023. This decline could be due to various factors such as changes in the company's cash position or an increase in current liabilities.

Overall, the cash ratio of Sitime Corporation has displayed both positive and negative trends over the analyzed period, indicating varying levels of liquidity and ability to meet short-term obligations with its available cash resources. It is essential for Sitime to closely monitor its cash position and manage its liquidity effectively to ensure financial stability and meet its financial obligations in a timely manner.