Sitime Corporation (SITM)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	202,697	176,989	154,811	138,673	143,994	162,431	200,006	251,696	283,606	298,507	288,441	253,519	218,808	183,341	152,979	129,956	116,156	103,971	96,629	90,999
Property, plant and equipment	US$ in thousands	—	—	—	—	—	—	—	57,487	69,620	56,114	63,406	44,211	46,096	31,346	29,189	14,927	11,708	20,079	19,882	19,407
Fixed asset turnover		—	—	—	—	—	—	—	4.38	4.07	5.32	4.55	5.73	4.75	5.85	5.24	8.71	9.92	5.18	4.86	4.69

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $202,697K ÷ $—K
= —

The fixed asset turnover ratio of Sitime Corporation has fluctuated over the past few years, ranging from a low of 4.07 to a high of 9.92. This ratio measures the company's ability to generate sales from its investment in fixed assets, such as property, plant, and equipment. A higher ratio indicates that the company is using its fixed assets efficiently to generate revenue.

In analyzing the trend, we can see that the fixed asset turnover ratio increased steadily from March 31, 2020 to December 31, 2021, peaking at 9.92. This indicates that Sitime Corporation was able to generate more sales relative to its fixed asset base during this period. However, the ratio then experienced a decline, reaching a low of 4.07 by December 31, 2022.

The fluctuation in the fixed asset turnover ratio may indicate changes in the company's operations, such as increased investment in fixed assets without a corresponding increase in sales, or a decline in sales relative to fixed asset investment. It would be important to further investigate the factors driving these changes to better understand Sitime Corporation's operational efficiency and asset utilization.