Sitime Corporation (SITM)
Return on equity (ROE)
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | -93,601 | -80,535 | 23,254 | 32,277 | -9,372 |
| Total stockholders’ equity | US$ in thousands | 699,719 | 708,052 | 708,480 | 632,497 | 109,880 |
| ROE | -13.38% | -11.37% | 3.28% | 5.10% | -8.53% |
December 31, 2024 calculation
ROE = Net income ÷ Total stockholders’ equity
= $-93,601K ÷ $699,719K
= -13.38%
Sitime Corporation's return on equity (ROE) has shown fluctuations over the past five years. In December 2020, the ROE was negative at -8.53%, indicating that the company was not efficiently utilizing its equity to generate profits for shareholders. However, there was an improvement in December 2021, with ROE increasing to 5.10%, reflecting a better return on the shareholders' investments.
In the following year, December 2022, the ROE slightly decreased to 3.28%, suggesting a slight decline in the company's profitability relative to its equity capital. The trend took a significant downturn in December 2023, where the ROE dropped to -11.37%, indicating that the company experienced a loss in shareholder value due to inefficient operations or financial management.
The most recent data point, December 2024, shows a further decline in ROE to -13.38%, indicating continued challenges in generating profits from the equity investment. Overall, Sitime Corporation's ROE trend demonstrates inconsistent performance in effectively utilizing shareholder equity to generate returns over the five-year period, with indications of declined profitability in recent years.
Peer comparison
Dec 31, 2024