Sitime Corporation (SITM)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.34 | 1.06 | 1.07 | 1.24 | 1.99 |
Solvency ratios provide insights into a company's ability to meet its long-term financial obligations. Looking at the solvency ratios of SiTime Corp over the past five years, we observe a consistent trend of decreasing leverage and debt levels, indicating a strong financial position.
The debt-to-assets, debt-to-capital, and debt-to-equity ratios all indicate that SiTime Corp has maintained a debt-free capital structure during this period. These ratios have consistently been at 0.00, suggesting that the company has not relied on debt to finance its operations and investments.
Furthermore, the financial leverage ratio, which measures the proportion of assets financed by debt, has shown a decreasing trend from 1.99 in 2019 to 1.34 in 2023. This decline indicates that SiTime Corp has been progressively reducing its reliance on debt to fund its operations, resulting in a more financially stable position.
Overall, the solvency ratios reflect SiTime Corp's prudent financial management and its ability to operate without significant leverage or debt, which bodes well for the company's long-term financial stability and sustainability.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 0.85 | 4.42 | -11.91 | -2.86 |
The interest coverage ratio for SiTime Corp was not available for the years 2021, 2022, and 2023, suggesting that the company did not provide sufficient earnings to cover its interest expenses during those periods. In the year 2020, the interest coverage ratio was -11.86, indicating that the company's earnings were insufficient to cover its interest expenses by almost 12 times. This deterioration in the interest coverage ratio compared to the previous year 2019, where the ratio was -2.84, suggests a worsening financial position in terms of the company's ability to meet its interest obligations. A negative interest coverage ratio indicates that the company is not generating enough operating income to cover its interest expenses, raising concerns about its financial stability and ability to service its debt.