Sitime Corporation (SITM)

Days of inventory on hand (DOH)

		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
Inventory turnover		0.94	1.03	1.19	1.52	1.75	2.23	2.81	2.85	3.36	3.82	3.75	4.22	4.71	3.53
DOH	days	386.43	355.44	306.68	240.90	209.08	163.72	129.76	128.08	108.70	95.64	97.32	86.54	77.42	103.44

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 0.94
= 386.43

The days of inventory on hand (DOH) for SiTime Corp has shown a consistent upward trend over the past eight quarters. The company's DOH has increased from 128.08 days in Q1 2022 to 386.43 days in Q4 2023. This indicates that SiTime Corp is holding inventory for a longer duration before selling it.

A high DOH value suggests that the company may be facing challenges in managing its inventory efficiently, potentially leading to increased holding costs and a higher risk of obsolescence.

It is important for SiTime Corp to closely monitor and actively manage its inventory levels to ensure optimal utilization of resources and to avoid potential negative impacts on profitability and liquidity. Additionally, the company could explore strategies to improve inventory turnover rates and streamline inventory management processes to enhance operational efficiency.