Sitime Corporation (SITM)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	884,959	877,903	878,555	942,623	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
Operating ROA		-12.30%	-12.02%	-12.05%	-11.58%	-10.45%	-11.43%	-8.05%	-2.05%	1.72%	5.26%	7.17%	6.07%	4.84%	4.01%	0.03%	-2.23%	-6.33%	-7.56%	-4.89%	-5.70%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $-108,835K ÷ $884,959K
= -12.30%

Sitime Corporation's operating return on assets (ROA) has fluctuated significantly over the analyzed period. Initially, the company experienced negative operating ROA figures, indicating that its operating income generated from its assets was insufficient to cover the costs associated with those assets.

However, starting from March 31, 2021, Sitime Corporation began to show some improvement in its operating ROA, eventually turning positive. The positive values suggest that the company's operating income was able to cover the costs of its assets and generate additional returns.

The trend continued to improve until June 30, 2022, when Sitime Corporation achieved its highest operating ROA of 7.17%. This peak performance was followed by a slight decrease in the subsequent quarters but still remained positive.

From March 31, 2023, the company's operating ROA started to decline significantly and turned negative once again. The negative values indicate that Sitime Corporation's operating income was insufficient to cover the costs of its assets, leading to decreased returns.

By December 31, 2024, the operating ROA had decreased to its lowest point of -12.30%. This declining trend indicates a potential struggle for Sitime Corporation in effectively utilizing its assets to generate operating income.

Overall, Sitime Corporation's operating ROA shows a mixed performance over the analyzed period, with periods of both improvement and decline. It will be crucial for the company to assess and address the factors contributing to the negative trends in order to enhance its operational efficiency and profitability in the future.