Sitime Corporation (SITM)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -101,747 | -100,404 | -107,189 | -116,730 | -111,307 | -97,199 | -68,229 | -19,620 | 12,413 | 36,925 | 49,185 | 38,950 | 29,404 | 12,698 | 77 | -7,260 | -8,630 | -9,674 | -7,617 | -7,318 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | -14.54% | -14.42% | -15.48% | -16.77% | -15.72% | -13.68% | -9.63% | -2.75% | 1.75% | 5.32% | 7.23% | 5.96% | 4.65% | 3.90% | 0.03% | -2.46% | -7.85% | -9.41% | -7.65% | -12.61% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-101,747K ÷ ($—K + $699,719K)
= -14.54%
Sitime Corporation's return on total capital has exhibited fluctuating trends over the past few years. The ratio was negative from March 2020 to June 2021, indicating that the company was not generating sufficient returns relative to its total capital employed during that period. However, starting from September 2021, the return on total capital turned positive and displayed an increasing trend up to June 2022, reaching a peak of 7.23%.
Subsequently, there was a slight decline in the return on total capital from September 2022 to March 2024, with some quarters showing negative returns. The ratio hit a low of -16.77% in March 2024, signifying challenges in utilizing capital effectively to generate returns.
Overall, Sitime Corporation experienced a mix of negative and positive returns on total capital over the analyzed periods, indicating fluctuations in the company's ability to generate profits relative to the capital invested. The management may need to focus on optimizing capital utilization strategies to improve the company's long-term financial performance.
Peer comparison
Dec 31, 2024