Sitime Corporation (SITM)
Quick 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 6,106 | 8,489 | 16,637 | 96,275 | 9,468 | 16,711 | 30,375 | 38,265 | 34,603 | 41,608 | 580,291 | 571,454 | 559,461 | 267,042 | 253,538 | 256,952 | 73,525 | 69,208 | 102,486 | 71,248 |
| Short-term investments | US$ in thousands | 412,728 | 426,307 | 435,881 | 421,006 | 518,733 | 551,398 | 544,299 | 537,818 | 529,494 | 522,178 | — | — | — | — | — | — | — | — | — | — |
| Receivables | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Quick ratio | 3.86 | 4.58 | 5.63 | 4.33 | 4.35 | 18.16 | 18.87 | 22.85 | 16.69 | 16.11 | 13.30 | 16.77 | 14.96 | 7.99 | 10.68 | 11.82 | 3.84 | 3.94 | 2.12 | 1.14 |
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 for Sitime Corporation has shown significant fluctuations over the periods provided. The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets.
From March 31, 2020, to December 31, 2021, the quick ratio increased steadily from 1.14 to 14.96, indicating a strong ability to cover immediate liabilities with liquid assets. This trend suggests that the company improved its liquidity position over this period, which is a positive sign for short-term financial stability.
However, from March 31, 2022, to December 31, 2024, the quick ratio fluctuated with some volatility, dropping to as low as 3.86. While the quick ratio remained above 1 during this period, indicating that the company could still cover its short-term liabilities, the declining trend raises concerns about the company's liquidity management.
In March 31, 2024, and June 30, 2024, there was a minor increase in the quick ratio, indicating a potential improvement in liquidity. However, by September 30, 2024, the quick ratio decreased to 4.58, and by December 31, 2024, it further dropped to 3.86.
Overall, the analysis of the quick ratio for Sitime Corporation suggests that while the company had a strong liquidity position in the past, there have been fluctuations in more recent periods that may require closer monitoring to ensure adequate liquidity to meet short-term obligations.
Peer comparison
Dec 31, 2024