Sitime Corporation (SITM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	143,994	162,430	200,005	251,695	283,605	298,507	288,441	253,519	218,808	183,341	152,979	129,956	116,156	103,971
Property, plant and equipment	US$ in thousands	54,685	55,916	56,295	57,487	58,772	56,114	51,920	44,211	37,902	31,346	20,772	14,927	11,708	10,859	10,415	9,627	9,288
Fixed asset turnover		2.63	2.90	3.55	4.38	4.83	5.32	5.56	5.73	5.77	5.85	7.36	8.71	9.92	9.57

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $143,994K ÷ $54,685K
= 2.63

SiTime Corp's fixed asset turnover has shown a declining trend over the past eight quarters. The ratio decreased from 5.73 in Q1 2022 to 2.63 in Q4 2023. This indicates that the company's ability to generate sales from its fixed assets has been decreasing.

A fixed asset turnover ratio of 2.63 in Q4 2023 implies that for every dollar invested in fixed assets, the company generates $2.63 in sales. This is lower compared to the previous quarters and suggests that SiTime Corp may not be efficiently utilizing its fixed assets to generate revenue.

The declining fixed asset turnover could be a cause for concern as it may indicate inefficiencies in asset management or a decrease in operational efficiency. Management should closely monitor this trend and take necessary actions to improve the utilization of fixed assets to enhance operational performance and profitability.