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	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
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	99,569	58,014	62,140
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.