Sitime Corporation (SITM)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 51.55% | 57.01% | 64.51% | 63.74% | 49.87% |
| Operating profit margin | -56.85% | -74.45% | 1.52% | 11.39% | -7.42% |
| Pretax margin | -45.94% | -55.82% | 8.23% | 14.79% | -8.07% |
| Net profit margin | -46.18% | -55.93% | 8.20% | 14.75% | -8.07% |
Sitime Corporation's gross profit margin has shown a generally increasing trend over the years, reaching a high of 64.51% in December 31, 2022, before slightly decreasing to 57.01% in December 31, 2023. It then decreased further to 51.55% in December 31, 2024.
In terms of operating profit margin, Sitime Corporation experienced fluctuations in profitability. After posting a negative margin of -7.42% in December 31, 2020, the company managed to improve its performance significantly to 11.39% in December 31, 2021. However, profitability declined to 1.52% in December 31, 2022, before sharply decreasing to -74.45% in December 31, 2023 and -56.85% in December 31, 2024.
The pretax margin and net profit margin of Sitime Corporation followed a similar pattern. The company's performance improved in December 31, 2021, with a positive pretax and net profit margin of 14.79% and 14.75%, respectively. However, profitability deteriorated significantly in the subsequent years, with both margins turning negative in December 31, 2023 and December 31, 2024.
Overall, Sitime Corporation's profitability ratios exhibit a mixed performance, with varying levels of profitability and margin trends observed over the years. The company experienced both improvements and declines in profitability, highlighting the importance of closely monitoring and addressing factors affecting its financial performance.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -13.02% | -11.26% | 0.57% | 3.67% | -6.33% |
| Return on assets (ROA) | -10.58% | -8.46% | 3.10% | 4.76% | -6.89% |
| Return on total capital | -14.94% | -14.05% | 2.28% | 5.19% | -7.87% |
| Return on equity (ROE) | -13.38% | -11.37% | 3.28% | 5.10% | -8.53% |
Based on the provided data, Sitime Corporation's profitability ratios show fluctuating performance over the years.
1. Operating return on assets (Operating ROA) improved from -6.33% in December 2020 to 3.67% in December 2021 but decreased to 0.57% in December 2022. However, there was a significant drop to -11.26% in December 2023 and further to -13.02% in December 2024.
2. Return on assets (ROA) also followed a similar pattern, starting at -6.89% in December 2020, rising to 4.76% in December 2021, and then declining to 3.10% in December 2022. The ratio turned negative in December 2023 and continued to decline to -10.58% in December 2024.
3. Return on total capital ranged from -7.87% in December 2020 to 5.19% in December 2021, but then dropped to 2.28% in December 2022. However, there was a sharp decline to -14.05% in December 2023 and further to -14.94% in December 2024.
4. Return on equity (ROE) illustrated similar trends, moving from -8.53% in December 2020 to 5.10% in December 2021, and then declining to 3.28% in December 2022. ROE turned negative by December 2023 and dropped significantly to -13.38% in December 2024.
Overall, Sitime Corporation's profitability ratios reflect inconsistency and deteriorating performance in recent years, as evidenced by the downward trend in various profitability metrics. Further analysis is required to identify the potential reasons behind these fluctuations and develop strategies for improvement.