Sitime Corporation (SITM)

Payables turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	61,905	100,643	79,346	58,224	44,516
Payables	US$ in thousands	8,690	14,881	13,103	6,182	3,869
Payables turnover		7.12	6.76	6.06	9.42	11.51

December 31, 2023 calculation

Payables turnover = Cost of revenue ÷ Payables
= $61,905K ÷ $8,690K
= 7.12

SiTime Corp's payables turnover ratio has fluctuated over the past five years, ranging from 6.06 to 11.51 times. The payables turnover ratio measures how efficiently the company is managing its outstanding supplier payments. A higher payables turnover ratio indicates that the company is paying its suppliers more frequently within a year, which could be a positive sign of strong cash management and favorable supplier relationships.

In the case of SiTime Corp, the payables turnover ratio has generally been above 6 times, indicating that the company is managing its payables efficiently. The declining trend from 2019 to 2021 may suggest that SiTime Corp was taking longer to pay its suppliers during those years. However, the ratio rebounded in 2022 and 2023, indicating an improvement in the efficiency of payables management. Overall, the company's payables turnover ratio suggests a relatively efficient handling of supplier payments, but further analysis of the company's payment terms and supplier relationships would provide a more comprehensive understanding of its payables management.