Sitime Corporation (SITM)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	-101,747	-100,404	-107,189	-116,730	-111,307	-97,199	-68,229	-19,620	12,413	36,925	49,185	38,950	29,404	12,698	77	-7,260	-8,630	-9,674	-7,617	-7,318
Interest expense (ttm)	US$ in thousands	0	5,729	5,729	5,729	11,458	9,024	11,516	12,319	6,738	3,443	951	148	0	1,452	1,562	1,875	2,178	1,119	1,435	1,578
Interest coverage		—	-17.53	-18.71	-20.38	-9.71	-10.77	-5.92	-1.59	1.84	10.72	51.72	263.18	—	8.75	0.05	-3.87	-3.96	-8.65	-5.31	-4.64

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $-101,747K ÷ $0K
= —

Sitime Corporation's interest coverage ratio has shown significant volatility over the past few years. It was negative in the range of -4.64 to -8.65 from March 2020 to September 2020, indicating the company was not generating enough earnings to cover its interest expenses during that period.

However, the situation improved notably from September 2021 onwards, with the interest coverage ratio showing positive values. This improvement suggests that Sitime Corporation's earnings were sufficient to cover its interest payments.

Notably, the interest coverage ratio spiked to 263.18 in March 2022, indicating a significant improvement in the company's ability to meet its interest obligations. Despite some fluctuations in the following quarters, the interest coverage ratio generally remained positive until December 2023.

In the last few reporting periods, the interest coverage ratio has turned negative again, indicating a decline in earnings relative to interest expenses. This negative trend should be monitored closely as it may signal potential financial challenges for Sitime Corporation in meeting its financial obligations.

Overall, the fluctuating nature of Sitime Corporation's interest coverage ratio suggests varying levels of financial stability and liquidity over the analyzed periods.