Sitime Corporation (SITM)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	-93,601	-80,535	23,254	32,277	-9,372
Revenue	US$ in thousands	202,697	143,993	283,605	218,808	116,156
Net profit margin		-46.18%	-55.93%	8.20%	14.75%	-8.07%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $-93,601K ÷ $202,697K
= -46.18%

The net profit margin of Sitime Corporation has shown fluctuations over the years based on the provided data. In December 31, 2020, the company had a negative net profit margin of -8.07%, indicating that its expenses exceeded its revenues. However, by December 31, 2021, the net profit margin improved significantly to 14.75%, indicating efficient cost management and stronger profitability.

In the subsequent years, the net profit margin continued to fluctuate. By December 31, 2022, the margin stood at 8.20%, indicating sustained profitability, albeit at a slightly lower level than the previous year. However, in December 31, 2023, there was a significant decline in the net profit margin to -55.93%, signaling a substantial loss for the company. This sharp decrease could be indicative of large unexpected expenses, revenue declines, or other operational challenges.

Furthermore, by December 31, 2024, the net profit margin further deteriorated to -46.18%, indicating ongoing financial challenges for Sitime Corporation. A negative net profit margin over consecutive years may raise concerns about the company's financial health and sustainability, highlighting the need for rigorous cost-cutting measures or strategic changes to improve profitability.