Sitime Corporation (SITM)

Financial leverage ratio

		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	Dec 31, 2019
Total assets	US$ in thousands	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	123,391
Total stockholders’ equity	US$ in thousands	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	62,140
Financial leverage ratio		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	1.99

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $951,683K ÷ $708,052K
= 1.34

The financial leverage ratio measures the proportion of a company's debt to its equity. A higher financial leverage ratio indicates that the company relies more on debt financing, while a lower ratio suggests a stronger reliance on equity financing.

Looking at the data for SiTime Corp over the past eight quarters, we observe some fluctuations in the financial leverage ratio. In Q4 2023, the ratio stands at 1.34, indicating a higher level of debt compared to equity. This represents a notable increase from the previous quarter, where the ratio was 1.05.

Although the financial leverage ratio in Q4 2023 is relatively high, it is essential to consider the trend over multiple periods to assess the company's overall leverage position. It appears that the ratio has been relatively stable around the 1.05 to 1.08 range in the previous quarters, with occasional fluctuations.

Further analysis and comparison with industry benchmarks or historical trends would provide more insights into SiTime Corp's leverage strategy and financial risk profile. It is crucial to monitor changes in the financial leverage ratio over time to understand how the company's capital structure is evolving and the potential implications for its financial health and performance.