Sitime Corporation (SITM)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.01% | 59.20% | 61.77% | 63.87% | 64.51% | 66.10% | 66.47% | 65.43% | 63.74% | 59.13% | 54.66% | 51.38% | 49.87% | 48.39% |
| Operating profit margin | -74.45% | -52.62% | -28.38% | -4.79% | 5.69% | 14.09% | 18.23% | 16.72% | 15.01% | 8.04% | 0.07% | -5.57% | -7.42% | -9.29% |
| 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% |
| Net profit margin | -55.93% | -38.21% | -19.08% | 0.25% | 8.20% | 14.95% | 18.31% | 16.56% | 14.75% | 7.86% | -0.14% | -6.04% | -8.07% | -10.32% |
Over the past eight quarters, the gross profit margin for SiTime Corp has been gradually decreasing, indicating a decline in the percentage of revenue retained after accounting for the cost of goods sold. This trend may raise concerns about the company's ability to control production costs effectively.
The operating profit margin has shown significant variability, with the latest quarter (Q4 2023) representing a sharp decline to a negative figure. This suggests that the company's operating expenses have outpaced revenue, leading to operating losses. The consistent negative trend in the operating profit margin raises questions about the efficiency of SiTime Corp's core operations.
Similarly, the pretax margin has also experienced a noticeable downward trajectory, culminating in a negative figure in Q4 2023. This indicates that the company's profitability before accounting for taxes has been eroding, possibly due to a combination of declining revenues and increasing expenses.
The net profit margin, which represents the company's bottom-line profitability after all expenses have been deducted, has also shown a consistent decline over the quarters, with the latest quarter reporting a significant negative figure. This suggests that SiTime Corp's ability to generate profits for its shareholders has been diminishing, raising concerns about its overall financial health and sustainability.
In summary, the profitability ratios of SiTime Corp paint a concerning picture of declining margins across the board, indicating potential challenges in cost management, revenue generation, and overall operational efficiency. Further analysis and action may be required to address these profitability issues and improve the company's financial performance.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | -8.46% | -8.30% | -5.12% | 0.08% | 3.10% | 6.05% | 7.20% | 6.01% | 4.76% | 3.92% | -0.07% | -2.42% | -6.89% | -8.40% |
| Return on total capital | -15.14% | -12.03% | -8.01% | -1.69% | 2.28% | 6.06% | 7.73% | 6.48% | 5.19% | 4.49% | 0.01% | -2.49% | -7.87% | -9.35% |
| Return on equity (ROE) | -11.37% | -8.74% | -5.39% | 0.09% | 3.28% | 6.43% | 7.76% | 6.42% | 5.10% | 4.42% | -0.07% | -2.66% | -8.53% | -10.44% |
SiTime Corp's profitability ratios have shown a downward trend in recent quarters.
- Operating return on assets (Operating ROA) has been negative, indicating that the company's core operations have not been generating a satisfactory return. The decreasing trend suggests a decline in operational efficiency and profitability.
- Return on assets (ROA) has also been decreasing, indicating that the company's overall assets are not generating as much profit as before. This suggests potential inefficiencies in asset utilization or declining profitability.
- Return on total capital has followed a negative trend, indicating that the company's total invested capital is not earning a sufficient return. This could signal challenges in generating profits relative to the total capital employed in the business.
- Return on equity (ROE) has exhibited a decreasing trend, implying that the company's shareholders' equity is not generating as much return as in previous periods. This could indicate decreasing profitability relative to the equity investment in the company.
Overall, SiTime Corp's profitability ratios suggest declining profitability and efficiency in generating returns from assets, capital, and equity. Management may need to investigate the underlying factors contributing to the decreasing trend and take actions to improve operational performance and financial results.