Sitime Corporation (SITM)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	98,202	84,645	72,017	61,964	61,905	66,275	76,471	90,925	100,643	101,181	96,716	87,641	79,346	74,931	69,362	63,183	58,224	53,662	51,075	49,054
Inventory	US$ in thousands	76,741	71,880	70,785	74,376	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
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

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $98,202K ÷ $76,741K
= 1.28

Sitime Corporation's inventory turnover has shown some fluctuations over the past few years. The inventory turnover ratio indicates how many times a company sells and replaces its inventory during a specific period.

From March 31, 2020, to March 31, 2021, the inventory turnover ratio increased steadily from 3.46 to 4.22, indicating an improvement in inventory management efficiency. However, the ratio started to decline from June 30, 2021, reaching a low of 1.19 by June 30, 2023. This significant drop suggests potential issues with managing and selling inventory effectively.

The company's inventory turnover started to show some recovery from September 30, 2023, to December 31, 2024, increasing gradually from 1.03 to 1.28. Despite this recovery, the ratio remains below the previous levels, indicating that Sitime Corporation may still be facing challenges in efficiently managing its inventory levels.

A lower inventory turnover ratio could imply issues such as overstocking, slow-moving inventory, or inadequate sales. Sitime Corporation may need to reassess its inventory management strategies to improve efficiency and optimize its working capital utilization.