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
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
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.