Sitime Corporation (SITM)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 9,468 | 34,603 | 559,461 | 73,525 | 63,418 |
| Short-term investments | US$ in thousands | 518,733 | 529,494 | — | — | — |
| Receivables | US$ in thousands | 21,861 | 41,229 | 38,376 | 24,656 | 18,732 |
| Total current liabilities | US$ in thousands | 121,394 | 33,794 | 37,385 | 19,145 | 53,311 |
| Quick ratio | 4.53 | 17.91 | 15.99 | 5.13 | 1.54 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($9,468K
+ $518,733K
+ $21,861K)
÷ $121,394K
= 4.53
The quick ratio of SiTime Corp has exhibited significant fluctuations over the past five years. The ratio was 1.65 in 2019, indicating that for every $1 of current liabilities, the company had $1.65 in quick assets to cover those liabilities. This suggests a relatively modest liquidity position.
However, there was a substantial improvement in liquidity in the following years, with the quick ratio reaching 5.27 in 2020, 16.11 in 2021, and 18.09 in 2022. These figures indicate a more robust liquidity position, reflecting the company's ability to quickly meet its short-term obligations with liquid assets.
Notably, the quick ratio further increased to 4.59 in 2023, still reflecting a healthy liquidity position, although slightly lower compared to the previous two years.
Overall, SiTime Corp's quick ratio has shown a positive trend in recent years, indicating an improved ability to cover short-term obligations with quick assets. This suggests enhanced liquidity management and financial strength within the company.
Peer comparison
Dec 31, 2023