Sitime Corporation (SITM)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	-115,240	-107,200	4,299	24,917	-8,613
Revenue	US$ in thousands	202,697	143,993	283,605	218,808	116,156
Operating profit margin		-56.85%	-74.45%	1.52%	11.39%	-7.42%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $-115,240K ÷ $202,697K
= -56.85%

Sitime Corporation's operating profit margin has shown significant fluctuations over the past five years.

In 2020, the company reported a negative operating profit margin of -7.42%, indicating that its operating expenses exceeded its operating income, resulting in a loss from core business operations.

By the end of 2021, Sitime Corporation managed to turn its operating profit margin around to a positive 11.39%, showing improved profitability and efficiency in managing its operational costs.

However, in 2022, the operating profit margin declined to 1.52%, suggesting that the company may have faced challenges in maintaining profitability and controlling expenses during that period.

The following years showed a significant downward trend in the operating profit margin, with substantial declines to -74.45% in 2023 and -56.85% in 2024. These negative margins indicate that Sitime Corporation experienced substantial losses in its core business operations, possibly due to increasing costs or declining revenues.

Overall, the fluctuating trend in Sitime Corporation's operating profit margin raises concerns about the company's ability to sustain profitability and control its operational costs effectively. Further analysis of the company's financial performance and strategies may be necessary to address these challenges and improve its profitability in the future.