Sitime Corporation (SITM)

Pretax margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before tax but after interest (EBT)	US$ in thousands	-93,115	-80,383	23,336	32,355	-9,371
Revenue	US$ in thousands	202,697	143,993	283,605	218,808	116,156
Pretax margin		-45.94%	-55.82%	8.23%	14.79%	-8.07%

December 31, 2024 calculation

Pretax margin = EBT ÷ Revenue
= $-93,115K ÷ $202,697K
= -45.94%

Sitime Corporation's pretax margin has shown significant fluctuations over the years based on the provided data. In 2020, the company had a negative pretax margin of -8.07%, indicating that its expenses exceeded its revenues before considering taxes. By 2021, the pretax margin improved significantly to 14.79%, reflecting a healthier financial performance with higher profits relative to revenue.

However, in 2022, Sitime Corporation experienced a slight decline in pretax margin to 8.23%, potentially indicating challenges in managing costs or generating sufficient revenue growth. The following two years, 2023 and 2024, saw substantial drops in pretax margin to -55.82% and -45.94%, respectively. These negative pretax margins suggest that the company's costs and expenses outpaced its revenue, resulting in significant losses before tax considerations.

Overall, Sitime Corporation's pretax margin analysis highlights the importance of closely monitoring and managing both costs and revenue generation to ensure sustainable profitability and financial health.