Sitime Corporation (SITM)

Days of sales outstanding (DSO)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Receivables turnover		6.59	6.88	5.70	4.71	4.49
DSO	days	55.41	53.06	64.02	77.48	81.32

December 31, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.59
= 55.41

SiTime Corp's Days Sales Outstanding (DSO) has shown a decreasing trend from 81.32 days in 2019 to 55.41 days in 2023. This indicates that the company has been able to collect its accounts receivable more efficiently over the years. A lower DSO is generally a positive sign as it signifies better cash flow management and potentially fewer delays in receiving payments from customers.

The improvement in DSO can be attributed to various factors such as better credit policies, effective collection procedures, and stronger customer relationships. By reducing the time it takes to convert accounts receivable into cash, SiTime Corp may have improved its liquidity position and overall financial health.

It is essential for the company to continue monitoring its DSO to ensure that the trend remains favorable and that any deviations are promptly addressed. Analyzing DSO in conjunction with other financial ratios can provide a more comprehensive understanding of SiTime Corp's operational efficiency and effectiveness in managing working capital.