Sitime Corporation (SITM)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 57.01% | 64.51% | 63.74% | 49.87% | 47.05% |
| Operating profit margin | -74.45% | 5.69% | 15.01% | -7.42% | -5.80% |
| Pretax margin | -55.82% | 8.23% | 14.79% | -8.07% | -7.87% |
| Net profit margin | -55.93% | 8.20% | 14.75% | -8.07% | -7.86% |
The gross profit margin of SiTime Corp has shown a declining trend over the past five years, starting at 47.05% in 2019 and reaching 57.01% in 2023. This indicates an improvement in the company's ability to generate profit from its core operations.
However, the operating profit margin has been highly volatile, with significant fluctuations from -69.08% in 2023 to 15.01% in 2021. This suggests that the company's operational efficiency and cost management have been inconsistent over the years.
Similarly, the pretax margin and net profit margin have also experienced fluctuations, indicating challenges in maintaining consistent profitability after accounting for taxes and other expenses.
Overall, SiTime Corp's profitability ratios reflect a mix of improving gross profit margins but with volatility and challenges in operating and net profit margins. Further analysis of the company's cost structures and revenue streams may be needed to understand the underlying factors driving these trends.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | -11.26% | 2.15% | 4.84% | -6.33% | -3.95% |
| Return on assets (ROA) | -8.46% | 3.10% | 4.76% | -6.89% | -5.35% |
| Return on total capital | -15.14% | 2.28% | 5.19% | -7.87% | -7.89% |
| Return on equity (ROE) | -11.37% | 3.28% | 5.10% | -8.53% | -10.63% |
SiTime Corp's profitability ratios have shown fluctuating trends over the past five years.
1. Operating return on assets (Operating ROA) measures the company's operating income generated per dollar of assets. The ratio has been negative for the past three years, indicating that the company's operating activities have not been effectively utilizing its assets to generate profits.
2. Return on assets (ROA) is a broader measure of overall profitability, considering both operating and non-operating activities. SiTime Corp's ROA has also been negative for the past three years, showing that the company has not been profitable on an overall basis.
3. Return on total capital indicates the overall return generated by the company for all its capital sources. It has been negative for the past three years, suggesting that the company has not been able to generate sufficient returns to cover all of its capital costs.
4. Return on equity (ROE) measures the return generated for the shareholders' equity investment. The company's ROE has shown mixed results, with fluctuations in profitability over the past five years. While it was positive in some years, it has generally been on a downward trend, indicating a decreasing return for the shareholders.
Overall, the analysis of SiTime Corp's profitability ratios suggests that the company has faced challenges in generating profits efficiently and effectively utilizing its assets and capital resources in recent years.