Sitime Corporation (SITM)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 708,052 | 708,480 | 632,497 | 109,880 | 62,140 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $708,052K)
= 0.00
The debt-to-capital ratio of SiTime Corp has exhibited a consistent trend of decreasing over the past five years, from 0.40 in 2019 to 0.00 in 2023. A debt-to-capital ratio of 0.00 indicates that the company has no debt in relation to its total capital, implying that it is primarily funded by equity. This demonstrates a strong financial position and a lower financial risk, as the company is not heavily reliant on debt financing. However, it is important to note that a debt-to-capital ratio of 0.00 may also suggest underutilization of debt as a source of financing, which could potentially limit the company's growth opportunities. Overall, SiTime Corp's decreasing debt-to-capital ratio reflects a conservative approach to capital structure management.
Peer comparison
Dec 31, 2023