Sitime Corporation (SITM)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
The solvency ratios of Sitime Corporation, as reflected in the financial data provided, indicate a consistently low level of debt relative to its assets, capital, and equity over the reporting periods.
The Debt-to-Assets ratio remained at 0.00 throughout the entire period, signifying that the company's total debt was negligible in comparison to its total assets. This implies a low financial risk and a strong ability to cover obligations with existing resources.
The Debt-to-Capital ratio also showed a stable trend at 0.00, indicating that the company's debt level in relation to its total capital (debt plus equity) was minimal. This suggests a conservative capital structure and a lower dependency on debt financing.
Similarly, the Debt-to-Equity ratio consistently remained at 0.00, demonstrating a lack of reliance on debt funding in comparison to equity. This reflects a healthy balance between debt and equity financing, contributing to financial stability and reduced risk exposure.
The Financial Leverage ratio, which provides an indication of the company's level of debt in relation to its equity, exhibited a declining trend from 2.21 in March 2020 to 1.26 by December 2024. This decline signifies a decreasing reliance on debt financing relative to equity over time, showcasing an improved financial position and enhanced solvency.
In conclusion, Sitime Corporation's solvency ratios consistently portray a strong financial position with minimal debt levels and a healthy mix of capital and equity, indicating a robust ability to meet financial obligations and sustain long-term solvency.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Sitime Corporation's interest coverage ratio fluctuated significantly over the analyzed periods. From March 31, 2020, to June 30, 2021, the company experienced negative interest coverage, indicating that its earnings before interest and taxes (EBIT) were insufficient to cover its interest expenses.
However, from September 30, 2021, to March 31, 2022, the interest coverage improved drastically, reaching extremely high levels. This sharp improvement suggests that Sitime Corporation's earnings were significantly higher than its interest expenses during this period, indicating a strong ability to meet its interest obligations.
Subsequently, from June 30, 2022, to September 30, 2024, the interest coverage ratio declined to negative values again, indicating a reversal in financial performance where EBIT was insufficient to cover interest expenses. This downturn in interest coverage may raise concerns about the company's ability to service its debt obligations.
The inconsistency in Sitime Corporation's interest coverage ratio over the analyzed periods suggests fluctuations in its financial health and ability to manage its debt effectively. It is essential for stakeholders to closely monitor these trends to assess the company's overall financial stability and debt servicing capacity.