Sitime Corporation (SITM)
Return on total capital
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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | -107,199 | -85,463 | -56,754 | -12,068 | 16,141 | 42,053 | 52,595 | 42,388 | 32,842 | 14,653 | 22 | -7,343 | -8,645 | -9,618 | |||
Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
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 |
Return on total capital | -15.14% | -12.03% | -8.01% | -1.69% | 2.28% | 6.06% | 7.73% | 6.48% | 5.19% | 4.49% | 0.01% | -2.49% | -7.87% | -9.35% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $-107,199K ÷ ($—K + $708,052K)
= -15.14%
SiTime Corp's return on total capital has shown a declining trend over the past eight quarters. In Q4 2023, the return on total capital was at -14.05%, indicating that the company's profitability from its total capital employed was negative. This follows a similar negative trend from the previous quarter where the return on total capital was at -12.03%.
The company's return on total capital has been deteriorating from positive figures in Q4 2022 (2.28%), Q3 2022 (6.06%), and Q2 2022 (7.73%) to negative figures in the recent quarters. This may suggest that SiTime Corp has been facing challenges in generating sufficient returns from its invested capital over time.
The declining trend in return on total capital could be a cause for concern as it indicates that the company is becoming less efficient in utilizing its total capital to generate profits. SiTime Corp may need to review and improve its operational efficiency, cost management, or revenue generation strategies to enhance its return on total capital in the future.
Peer comparison
Dec 31, 2023