Sitime Corporation (SITM)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	-107,200	16,142	32,843	-8,613	-4,873
Total assets	US$ in thousands	951,683	750,616	678,209	136,011	123,391
Operating ROA		-11.26%	2.15%	4.84%	-6.33%	-3.95%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $-107,200K ÷ $951,683K
= -11.26%

Operating ROA is a key financial metric that indicates the efficiency of SiTime Corp in generating operating profits relative to its total assets. A negative operating ROA signifies that the company is not efficiently utilizing its assets to generate operating profits, which can be concerning.

Looking at the trend over the past five years, SiTime Corp's operating ROA has been fluctuating. In 2022, the company demonstrated a positive operating ROA of 2.15%, indicating a moderate efficiency in generating operating profits relative to its assets. This was followed by a significant increase in 2021, reaching 4.84%, showcasing improved operational performance and asset utilization.

However, the operating ROA deteriorated in 2020 and 2019, with negative values of -6.33% and -3.95% respectively. These negative figures suggest that the company's operating profits were not sufficient to cover the cost of assets deployed in its operations during those years.

Overall, SiTime Corp needs to focus on improving its operational efficiency and asset utilization to enhance its operating ROA and generate sustainable profits in the long term.