Sitime Corporation (SITM)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.26 | 1.34 | 1.06 | 1.07 | 1.24 |
Sitime Corporation's solvency ratios indicate a strong financial position with consistent low debt levels and leverage over the years. The Debt-to-assets ratio remained at 0.00 from 2020 to 2024, demonstrating that the company has not relied heavily on debt to finance its assets. Similarly, the Debt-to-capital and Debt-to-equity ratios also stood at 0.00 during the same period, indicating that the company's capital and equity structures are not heavily burdened by debt.
The Financial leverage ratio, which provides insights into the proportion of the company's assets that are financed by debt, ranged from 1.06 to 1.34 over the five-year period. This suggests that Sitime Corporation has been able to effectively manage its leverage, maintaining a healthy balance between debt and equity in its capital structure.
Overall, Sitime Corporation's solvency ratios reflect a prudent approach to financial management, with a focus on maintaining a low debt burden and a stable capital structure, which bodes well for the company's long-term financial sustainability and ability to weather potential economic challenges.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 0.85 | 4.42 | -11.91 |
The interest coverage ratio for Sitime Corporation has exhibited fluctuations over the past years.
- As of December 31, 2020, the interest coverage ratio was negative at -11.91, indicating that the company's operating income was insufficient to cover its interest expenses, which may raise concerns about the company's financial health and ability to meet its debt obligations.
- By December 31, 2021, the interest coverage ratio improved to 4.42, suggesting that Sitime Corporation's operating income was able to cover its interest expenses more comfortably compared to the previous year. This improvement could indicate better financial stability and reduced risk of default.
- However, the interest coverage ratio decreased significantly to 0.85 as of December 31, 2022, falling below the industry average. This decline may raise concerns about the company's ability to service its debt and meet interest payments from its operating income.
- There is no available data for December 31, 2023 and December 31, 2024. It is essential for Sitime Corporation to monitor and manage its interest coverage ratio effectively to ensure it maintains a healthy financial position and meets its financial obligations promptly.