Sitime Corporation (SITM)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	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	63,418
Short-term investments	US$ in thousands	518,733	551,398	544,299	537,818	529,494	522,178	—	—	—	—	—	—	—	—	—	—	—
Total current liabilities	US$ in thousands	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	53,311
Cash ratio		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	1.19

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($9,468K + $518,733K) ÷ $121,394K
= 4.35

The cash ratio represents a company's ability to cover its short-term liabilities using its cash and cash equivalents. Looking at the historical trend of SiTime Corp's cash ratio, we observe fluctuations over the quarters.

In Q4 2023, the cash ratio stands at 4.41, indicating that the company has $4.41 in cash and cash equivalents for every $1 of current liabilities. This suggests a lower liquidity position compared to the previous quarter.

Furthermore, comparing Q4 2023 to Q1 2023, we see a decreasing trend in the cash ratio from 23.21 to 4.41. This significant drop may raise concerns about the company's short-term liquidity and ability to meet its obligations.

In general, fluctuations in the cash ratio can be influenced by various factors such as changes in cash holdings, operating performance, and management of current liabilities. It is essential for stakeholders to closely monitor these fluctuations to assess SiTime Corp's liquidity position accurately.