Sitime Corporation (SITM)

Current ratio

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total current assets	US$ in thousands	623,242	669,067	625,943	113,180	99,662
Total current liabilities	US$ in thousands	121,394	33,794	37,385	19,145	53,311
Current ratio		5.13	19.80	16.74	5.91	1.87

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $623,242K ÷ $121,394K
= 5.13

The current ratio measures a company's ability to cover its short-term liabilities with its short-term assets. A higher current ratio indicates a stronger ability to meet short-term obligations.

For SiTime Corp, the current ratio has fluctuated over the past five years. In 2019, the ratio was 1.87, indicating that the company had $1.87 in current assets for every $1 in current liabilities. The ratio improved significantly in 2020 to 5.91, suggesting an enhanced liquidity position. This trend continued in 2021 and 2022, with current ratios of 16.74 and 19.80, respectively, reflecting a substantial increase in the company's ability to cover short-term obligations.

In 2023, the current ratio decreased to 5.13, but it still remains at a healthy level. Although the ratio is lower compared to the previous two years, it is still significantly higher than in 2019, indicating that the company has maintained a strong liquidity position.

Overall, SiTime Corp's current ratio has shown a positive trend over the past five years, with the company demonstrating an improved ability to meet its short-term financial obligations. This suggests that the company has managed its working capital effectively and has sufficient current assets to support its current liabilities.