Sitime Corporation (SITM)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019
Operating income (ttm)	US$ in thousands	-107,199	-85,463	-56,754	-12,068	16,141	42,053	52,595	42,388	32,842	14,736	102	-7,243	-8,613	-9,657
Total assets	US$ in thousands	951,683	747,687	745,504	746,428	750,616	738,054	733,963	698,048	678,209	367,443	334,383	324,076	136,011	127,697	155,476	128,214	123,391
Operating ROA		-11.26%	-11.43%	-7.61%	-1.62%	2.15%	5.70%	7.17%	6.07%	4.84%	4.01%	0.03%	-2.23%	-6.33%	-7.56%

December 31, 2023 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-107,199K ÷ $951,683K
= -11.26%

SiTime Corp's operating return on assets (operating ROA) has shown a downward trend over the past eight quarters. The company experienced negative operating ROA in the most recent quarters, with values of -10.45% in Q4 2023 and -11.43% in Q3 2023. This indicates that the company's operating profits generated from its assets were insufficient to cover its operating expenses during these periods.

The decreasing trend in operating ROA suggests a decline in the company's operational efficiency and/or profitability. This may be a cause for concern, as it reflects a diminishing ability of the company to generate profits from its assets. Additionally, the negative values observed in the most recent quarters may indicate financial challenges that need to be addressed by the company's management.

On the positive side, SiTime Corp had positive operating ROA figures in the earlier quarters, such as 2.15% in Q4 2022 and 5.70% in Q3 2022. These values demonstrate that the company was previously able to effectively utilize its assets to generate operating profits.

Overall, the analysis of SiTime Corp's operating ROA highlights the importance of closely monitoring operational efficiency and profitability trends to identify areas that may require improvement in order to enhance the company's financial performance.