Sitime Corporation (SITM)
Debt-to-equity 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-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $708,052K
= 0.00
The debt-to-equity ratio for SiTime Corp has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing relative to equity. The ratio was consistently at 0.00 for the years 2020, 2021, 2022, and 2023, suggesting that the company has not taken on any debt during this period and has been financing its operations primarily through equity.
This could indicate a conservative financial strategy, where the company is avoiding taking on excessive debt to reduce financial risk and maintain financial stability. However, it is important to note that the sudden drop from a debt-to-equity ratio of 0.66 in 2019 to 0.00 in subsequent years could imply a significant shift in the company's capital structure or a strategic decision to pay down debt.
Overall, the consistently low debt-to-equity ratio suggests that SiTime Corp has a strong equity base and may have the flexibility to pursue growth opportunities or withstand economic downturns with minimal financial leverage.
Peer comparison
Dec 31, 2023