Sitime Corporation (SITM)

Current 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
Total current assets	US$ in thousands	544,060	545,745	553,567	618,175	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
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
Current ratio		5.02	5.75	6.89	5.18	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

December 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $544,060K ÷ $108,449K
= 5.02

Sitime Corporation's current ratio has shown significant fluctuations over the past few years. The current ratio measures the company's ability to cover its short-term liabilities with its short-term assets.

From March 31, 2020, to June 30, 2021, the current ratio increased steadily from 1.68 to 12.75, indicating an improvement in the company's liquidity position. This sharp increase suggests that Sitime had more than enough current assets to cover its current liabilities during this period.

However, from September 30, 2021, to March 31, 2024, the current ratio experienced fluctuations, dropping to as low as 5.13 by December 31, 2023. Such a decline may raise concerns about the company's ability to meet its short-term obligations using its current assets.

The current ratio improved again in the latter half of 2024, reaching 6.89 by June 30, 2024. Sitime's current ratio of 6.89 indicates that the company had sufficient current assets to meet its short-term liabilities as of that date.

Overall, Sitime Corporation's current ratio has displayed a mix of strengths and weaknesses over the analyzed period, highlighting the importance of closely monitoring changes in liquidity to ensure the company's financial health.