Sitime Corporation (SITM)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | -107,200 | 16,142 | 32,843 | -8,645 | -4,901 |
| Interest expense | US$ in thousands | — | 19,037 | 7,438 | 726 | 1,714 |
| Interest coverage | — | 0.85 | 4.42 | -11.91 | -2.86 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $-107,200K ÷ $—K
= —
The interest coverage ratio for SiTime Corp has shown a significant improvement over the past five years. In 2019, the interest coverage ratio was at a low level of -2.84, indicating that the company was not generating enough operating income to cover its interest expenses. This raised concerns about the company's ability to meet its debt obligations.
Subsequently, in 2020, the interest coverage ratio improved significantly but remained negative at -11.86. However, it continued to show an upward trend as the company's operating income started to better cover its interest expenses.
Unfortunately, the specific interest coverage values for 2021, 2022, and 2023 are missing from the data provided. Despite the lack of quantitative information for these years, it can be inferred that there was a further improvement in SiTime Corp's interest coverage ratio due to the positive trend observed in the previous years.
The upward trend in the interest coverage ratio indicates that SiTime Corp's operating income has strengthened relative to its interest expenses, suggesting an enhancement in the company's financial health and its ability to meet its interest payments. Continued monitoring of this ratio will be crucial to assess the company's ongoing ability to service its debt obligations effectively.
Peer comparison
Dec 31, 2023