Sitime Corporation (SITM)

Operating profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Jun 30, 2020	Mar 31, 2020
Operating income (ttm)	US$ in thousands	-108,835	-105,556	-105,870	-109,118	-99,471	-85,462	-59,981	-15,295	12,914	38,826	52,596	42,389	32,843	14,736	102	-7,243	-8,613	-9,657	-7,597	-7,307
Revenue (ttm)	US$ in thousands	202,697	176,989	154,811	138,673	143,994	162,431	200,006	251,696	283,606	298,507	288,441	253,519	218,808	183,341	152,979	129,956	116,156	103,971	96,629	90,999
Operating profit margin		-53.69%	-59.64%	-68.39%	-78.69%	-69.08%	-52.61%	-29.99%	-6.08%	4.55%	13.01%	18.23%	16.72%	15.01%	8.04%	0.07%	-5.57%	-7.42%	-9.29%	-7.86%	-8.03%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $-108,835K ÷ $202,697K
= -53.69%

The operating profit margin of Sitime Corporation has shown significant fluctuations over the past few years. The margin was negative in the early quarters of the data period, indicating that the company's operating expenses were higher than its operating income during those periods. However, starting from June 2021, the company managed to turn its operating profit margin positive, showing a consistent improvement in profitability.

The operating profit margin reached its peak at 18.23% in June 2022, reflecting a strong operational performance. However, the margin experienced a steep decline in the subsequent quarters, dropping to as low as -78.69% by March 2024. This sharp decline suggests that the company may have encountered challenges in controlling its operating expenses or faced a significant decrease in revenue during that period.

Overall, the fluctuating trend in Sitime Corporation's operating profit margin highlights the company's volatility in managing its operating efficiency and profitability. Investors and stakeholders should closely monitor this metric to assess the company's financial health and operational effectiveness.