Sitime Corporation (SITM)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		1.28	0.94	1.75	3.36	4.71
DOH	days	285.23	386.43	209.08	108.70	77.42

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 1.28
= 285.23

The days of inventory on hand (DOH) for Sitime Corporation has shown a notable increase over the years, starting at 77.42 days as of December 31, 2020, and progressively rising to 108.70 days by December 31, 2021. There was a significant spike to 209.08 days by December 31, 2022, and a further substantial increase to 386.43 days by December 31, 2023. However, by December 31, 2024, the DOH decreased to 285.23 days, indicating some variability in inventory management during that period. This trend suggests that Sitime Corporation may have experienced challenges in efficiently managing its inventory levels, which could impact cash flow, carrying costs, and overall operational efficiency. Further analysis of the reasons behind these fluctuations and potential strategies for improvement may be warranted to optimize inventory management practices.