Sitime Corporation (SITM)
Return on total capital
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -104,518 | -99,472 | 16,142 | 32,843 | -8,645 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 699,719 | 708,052 | 708,480 | 632,497 | 109,880 |
| Return on total capital | -14.94% | -14.05% | 2.28% | 5.19% | -7.87% |
December 31, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $-104,518K ÷ ($—K + $699,719K)
= -14.94%
Sitime Corporation's return on total capital has shown fluctuations over the years based on the data provided. In 2020, the return on total capital was negative at -7.87%, indicating that the company did not generate sufficient returns to cover its total capital investments. However, there was an improvement in 2021 with a return of 5.19%, reflecting a better performance in utilizing its total capital to generate profits.
In 2022, the return on total capital decreased to 2.28%, indicating a slight decline in the company's ability to generate returns relative to its total capital. The trend worsened in the following years, with returns falling significantly to -14.05% in 2023 and further dropping to -14.94% in 2024. These negative returns suggest that Sitime Corporation may be facing challenges in effectively utilizing its total capital to generate profits, potentially impacting its overall financial performance.
Overall, the fluctuating trend in Sitime Corporation's return on total capital raises concerns about its efficiency in generating returns on the total capital employed, which may require further analysis and strategic measures to improve its financial performance.
Peer comparison
Dec 31, 2024