Sitime Corporation (SITM)
Quick ratio
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,106 | 9,468 | 34,603 | 559,461 | 73,525 |
| Short-term investments | US$ in thousands | 412,728 | 518,733 | 529,494 | 0 | — |
| Receivables | US$ in thousands | — | — | — | — | — |
| Total current liabilities | US$ in thousands | 108,449 | 121,394 | 33,794 | 37,385 | 19,145 |
| Quick ratio | 3.86 | 4.35 | 16.69 | 14.96 | 3.84 |
December 31, 2024 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($6,106K
+ $412,728K
+ $—K)
÷ $108,449K
= 3.86
The quick ratio of Sitime Corporation has shown significant fluctuations over the years in review. Starting at 3.84 in December 2020, the ratio rose sharply to 14.96 by December 2021, indicating a strong ability to cover its short-term liabilities with its most liquid assets. Subsequently, the quick ratio continued to increase, reaching 16.69 by December 2022, reflecting a further improvement in the company's liquidity position.
However, the ratio then dropped to 4.35 by December 2023, suggesting a potential decrease in the company's ability to meet its short-term obligations with its quick assets. This decrease may warrant further investigation into the company's liquidity management during that period.
By December 2024, the quick ratio slightly decreased to 3.86 compared to the previous year, indicating a continued but moderate decline in the company's liquidity position. Overall, although the quick ratio of Sitime Corporation exhibited fluctuations, it generally remained above the industry average, indicating a relatively strong liquidity position during the years under consideration.
Peer comparison
Dec 31, 2024