Sitime Corporation (SITM)

Current 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
Total current assets	US$ in thousands	623,242	666,901	662,977	666,544	669,067	662,208	660,779	637,748	625,943	323,054	302,557	297,699	113,180	105,353	132,430	104,971	99,662
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
Current ratio		5.13	21.32	21.76	26.44	19.80	18.92	15.15	18.72	16.74	9.66	12.75	13.69	5.91	6.00	2.74	1.68	1.87

December 31, 2023 calculation

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

The current ratio of SiTime Corp has exhibited significant fluctuations over the past eight quarters. In Q4 2023, the current ratio stands at 5.13, indicating that the company has $5.13 in current assets for every $1 in current liabilities. This ratio has decreased from the previous quarter but remains at a healthy level.

The current ratio spiked to exceptionally high levels in Q3 2023 and Q2 2023, reaching 21.32 and 21.76, respectively. This surge may be attributed to a temporary increase in current assets or a decrease in current liabilities during those periods.

Comparing the current ratio to the same quarter in the previous year, we observe fluctuations in its magnitude. The current ratio has generally improved from Q1 2022 to Q3 2023, indicating a strengthening liquidity position for the company. However, in Q4 2022, the current ratio saw a decline, but it remained above the 1:1 threshold, signifying healthy liquidity overall.

Overall, SiTime Corp's current ratio has shown variability but generally reflects a solid ability to cover its short-term obligations with its current assets. Investors and stakeholders should continue to monitor this ratio alongside other financial metrics to assess the company's short-term liquidity position effectively.