Sitime Corporation (SITM)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	-80,383	-61,964	-38,102	708	23,336	44,742	52,920	42,055	32,322	14,476	-155	-7,805	-9,371	-10,738
Revenue (ttm)	US$ in thousands	143,994	162,430	200,005	251,695	283,605	298,507	288,441	253,519	218,808	183,341	152,979	129,956	116,156	103,971
Pretax margin		-55.82%	-38.15%	-19.05%	0.28%	8.23%	14.99%	18.35%	16.59%	14.77%	7.90%	-0.10%	-6.01%	-8.07%	-10.33%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $-80,383K ÷ $143,994K
= -55.82%

The pretax margin of SiTime Corp has been fluctuating over the past eight quarters, with significant variations in profitability levels. In Q4 2023, the company experienced a negative pretax margin of -55.82%, reflecting a substantial decline in profitability compared to the previous quarters. This is a notable decrease from Q3 2023, where the pretax margin was -38.15%.

Looking further back, there was a consistent trend of improvement in pretax margin from Q1 2022 to Q3 2022, with margins ranging from 16.60% to 18.36%. However, this positive trend reversed in subsequent quarters, leading to lower profitability levels.

It is evident that SiTime Corp faced challenges in maintaining its profitability, as shown by the negative pretax margins in more recent quarters. This indicates potential difficulties in managing costs and generating sufficient revenue to cover expenses before taxes. The company may need to focus on strategies to enhance efficiency and revenue generation to improve its profitability in the future.