Sitime Corporation (SITM)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	61,905	66,275	76,471	90,925	100,643	101,182	96,717	87,642	79,347	74,931	69,362	63,183	58,224	53,662
Inventory	US$ in thousands	65,539	64,539	64,252	60,011	57,650	45,385	34,383	30,753	23,630	19,635	18,494	14,980	12,350	15,208	14,781	14,159	11,911
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

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $61,905K ÷ $65,539K
= 0.94

The inventory turnover for SiTime Corp has shown a decreasing trend from Q1 2022 to Q4 2023. The inventory turnover ratio decreased from 2.85 in Q1 2022 to 0.94 in Q4 2023. This indicates that the company's ability to sell its inventory has declined over the period.

A lower inventory turnover ratio may suggest overstocking or slow-moving inventory, which can tie up capital and increase storage costs. It may also indicate potential issues with demand for the company's products or inefficient inventory management practices.

It is important for SiTime Corp to closely monitor its inventory turnover ratio and take appropriate measures to optimize inventory levels to improve liquidity, reduce holding costs, and enhance overall operational efficiency.