Sitime Corporation (SITM)

Return on equity (ROE)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	-80,535	23,254	32,277	-9,372	-6,607
Total stockholders’ equity	US$ in thousands	708,052	708,480	632,497	109,880	62,140
ROE		-11.37%	3.28%	5.10%	-8.53%	-10.63%

December 31, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-80,535K ÷ $708,052K
= -11.37%

SiTime Corp's return on equity (ROE) has fluctuated over the past five years, showing a concerning trend. The ROE was negative in three out of the five years, with the most recent ROE standing at -11.37% as of December 31, 2023. This indicates that the company's net income is not generating sufficient returns for its shareholders' equity.

The ROE improved in 2022 and 2021, reaching 3.28% and 5.10% respectively. However, these figures still suggest that SiTime Corp's profitability and efficiency in utilizing shareholders' equity were relatively low during those years.

The negative ROE values in 2020 and 2019, at -8.53% and -10.63% respectively, raise concerns about the company's ability to generate profits and create value for shareholders over those periods.

Overall, SiTime Corp's ROE performance indicates inconsistencies and inefficiencies in utilizing shareholders' equity to generate returns. It would be essential for the company to address these issues and implement strategies to improve its profitability and overall financial health.