Sitime Corporation (SITM)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	82,089	96,155	123,534	160,770	182,962	197,325	191,724	165,877	139,461	108,410	83,617	66,773	57,932	50,309
Revenue (ttm)	US$ in thousands	143,994	162,430	200,005	251,695	283,605	298,507	288,441	253,519	218,808	183,341	152,979	129,956	116,156	103,971
Gross profit margin		57.01%	59.20%	61.77%	63.87%	64.51%	66.10%	66.47%	65.43%	63.74%	59.13%	54.66%	51.38%	49.87%	48.39%

December 31, 2023 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $82,089K ÷ $143,994K
= 57.01%

The gross profit margin of SiTime Corp has shown a consistent downward trend over the past eight quarters, declining from 66.47% in Q2 2022 to 57.01% in Q4 2023. This indicates a decrease in the percentage of revenue retained after accounting for the cost of goods sold. The progressive decrease in gross profit margin may suggest increasing costs of production or pricing pressures faced by the company. It is important for SiTime Corp to closely monitor and manage its cost structure to improve profitability and maintain competitiveness in the market.