Sitime Corporation (SITM)

Days of inventory on hand (DOH)

		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
Inventory turnover		1.28	1.18	1.02	0.83	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	3.46	3.46
DOH	days	285.23	309.96	358.76	438.11	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	105.63	105.35

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 fluctuations over the latest five years. From March 31, 2020, to March 31, 2022, the DOH increased steadily from 105.35 days to 128.08 days, peaking at 240.90 days by March 31, 2023. This upward trend may indicate inefficient inventory management or potential issues with controlling production levels in line with demand.

Subsequently, there was a significant spike in DOH by June 30, 2023, reaching 306.68 days, and continued to increase through September 30, 2023, and December 31, 2023, demonstrating a potential overstocking situation. This can have negative implications such as tied-up capital, storage costs, and potentially obsolete stock.

The trend reversed in the following periods, with a notable decrease in DOH by March 31, 2024, and further decline by June 30, 2024. This downward movement may suggest efforts by Sitime Corporation to streamline inventory levels and improve efficiency in inventory turnover.

However, the DOH increased slightly by September 30, 2024, and decreased by December 31, 2024, indicating continued fluctuations in inventory management. It would be prudent for management to closely monitor inventory levels and trends to optimize working capital, reduce holding costs, and ensure alignment with market demand.