Sitime Corporation (SITM)
Return on equity (ROE)
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Net income (ttm) | US$ in thousands | -80,535 | -62,065 | -38,157 | 624 | 23,254 | 44,641 | 52,818 | 41,982 | 32,277 | 14,409 | -218 | -7,844 | -9,372 | -10,730 |
| Total stockholders’ equity | US$ in thousands | 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 |
| 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% |
December 31, 2023 calculation
ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-80,535K ÷ $708,052K
= -11.37%
SiTime Corp's Return on Equity (ROE) has shown a declining trend over the past eight quarters. The ROE was negative in the most recent quarter, Q4 2023, at -11.37%, indicating that the company generated a net loss relative to its equity. This decline continues from the previous quarter Q3 2023, which also had a negative ROE of -8.74%.
The decreasing trend in ROE suggests that SiTime's ability to generate profits from its shareholders' equity has been weakening. This may raise concerns about the company's operational efficiency, profitability, and overall financial health.
Looking back at earlier periods, in Q2 and Q1 of 2023, the ROE remained negative but improved slightly before turning positive in Q1 2023 at 0.09%. However, the positive ROE was relatively low, indicating limited profitability compared to the equity invested.
In the corresponding quarters of 2022, SiTime Corp had higher ROE figures, ranging from 3.28% to 7.76%, showing a more favorable performance in terms of generating returns for shareholders during that period.
Overall, SiTime Corp's ROE analysis suggests a concerning trend of declining profitability and efficiency in utilizing shareholder's equity, which may require further investigation into the company's operational and financial strategies to address these challenges.
Peer comparison
Dec 31, 2023