Sitime Corporation (SITM)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	884,959	951,683	750,616	678,209	136,011
Operating ROA		-13.02%	-11.26%	0.57%	3.67%	-6.33%

December 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $-115,240K ÷ $884,959K
= -13.02%

Operating return on assets (Operating ROA) is an important financial ratio that indicates the efficiency of a company in generating operating profits from its assets. Looking at the trend of Sitime Corporation's Operating ROA over the years from 2020 to 2024, we can see fluctuations in its performance.

- In 2020, the company had a negative Operating ROA of -6.33%, indicating that Sitime Corporation was unable to generate positive operating profits relative to its total assets.

- By the end of 2021, the Operating ROA improved significantly to 3.67%, suggesting that the company became more efficient in utilizing its assets to generate operating profits.

- However, in 2022, the Operating ROA decreased to 0.57%, indicating a slight dip in profitability compared to the previous year.

- The trend took a negative turn in 2023, with an Operating ROA of -11.26%, indicating a significant decrease in the company's ability to generate operating profits from its assets.

- The performance worsened in 2024, with an Operating ROA of -13.02%, showing a continued decline in profitability.

Overall, Sitime Corporation's Operating ROA has been inconsistent, with periods of improvement followed by declines. It is essential for the company to focus on optimizing its asset utilization and operational efficiency to enhance its profitability and long-term sustainability. Further analysis of the company's operational and financial strategies may be needed to address the fluctuating trend in Operating ROA.