Sitime Corporation (SITM)
Financial leverage ratio
Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | 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 | ||
---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
Total assets | US$ in thousands | 884,959 | 877,903 | 878,555 | 942,623 | 951,683 | 747,687 | 745,504 | 746,428 | 750,616 | 738,054 | 733,963 | 698,048 | 678,209 | 367,443 | 334,383 | 324,076 | 136,011 | 127,697 | 155,476 | 128,214 |
Total stockholders’ equity | US$ in thousands | 699,719 | 696,235 | 692,512 | 696,210 | 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 |
Financial leverage ratio | 1.26 | 1.26 | 1.27 | 1.35 | 1.34 | 1.05 | 1.05 | 1.05 | 1.06 | 1.06 | 1.08 | 1.07 | 1.07 | 1.13 | 1.10 | 1.10 | 1.24 | 1.24 | 1.56 | 2.21 |
December 31, 2024 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $884,959K ÷ $699,719K
= 1.26
Sitime Corporation's financial leverage ratio demonstrates a fluctuating trend over the analyzed periods. The ratio indicates the extent to which the company relies on debt financing in relation to its equity. A higher financial leverage ratio suggests that a company is using more debt to finance its operations, which can increase financial risk but also amplify returns for shareholders in favorable conditions.
Analyzing the data provided, Sitime Corporation's financial leverage ratio ranged from a high of 2.21 on March 31, 2020, to a low of 1.05 on March 31, 2023. This significant decrease in the ratio indicates a reduction in the company's reliance on debt for funding its operations. However, the ratio saw a slight uptick to 1.34 by December 31, 2023, before settling at 1.26 by the end of December 31, 2024.
Overall, the trend in Sitime Corporation's financial leverage ratio suggests a shift towards a more balanced capital structure, with the company potentially seeking a more conservative approach to managing its debt levels. This could be attributed to strategic decisions aimed at reducing financial risk and enhancing long-term stability in the face of changing market conditions or growth strategies.
Peer comparison
Dec 31, 2024