Sitime Corporation (SITM)

Return on equity (ROE)

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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	Jun 30, 2020	Mar 31, 2020
Net income (ttm)	US$ in thousands	-93,601	-94,785	-93,595	-92,748	-80,534	-62,064	-38,156	625	23,255	44,641	52,818	41,982	32,277	14,409	-218	-7,844	-9,372	-10,730	-8,984	-8,830
Total stockholders’ equity	US$ in thousands	699,719	696,235	692,512	696,210	708,052	710,342	708,267	713,660	708,480	694,442	680,284	653,874	632,497	325,997	303,926	295,269	109,880	102,823	99,569	58,014
ROE		-13.38%	-13.61%	-13.52%	-13.32%	-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%	-9.02%	-15.22%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-93,601K ÷ $699,719K
= -13.38%

Sitime Corporation's return on equity (ROE) has shown a fluctuating trend over the analyzed period. The ROE started at a negative value in March 2020 and continued to be negative until March 2021, indicating that the company was not generating positive returns relative to its shareholders' equity during this period.

From September 2021 onwards, the ROE turned positive, with an increasing trend reaching its peak in June 2022. This positive trend suggests that Sitime Corporation was able to generate higher returns on the equity invested by shareholders during this period.

However, the ROE started declining after June 2022, turning negative again by March 2023. The negative trend continued until December 2024, indicating a decrease in profitability relative to shareholders' equity during this period.

Overall, Sitime Corporation's ROE experienced significant fluctuations during the analyzed period, reflecting varying levels of profitability and efficiency in utilizing shareholders' equity. It may be important for the company to further analyze the factors influencing these fluctuations to sustain and improve its ROE in the future.