Sitime Corporation (SITM)

Payables 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
Payables	US$ in thousands	8,690	12,320	9,762	8,186	14,881	16,552	21,619	12,508	13,103	12,972	9,932	9,024	6,182	7,473	5,004	4,315	3,869
Payables turnover		7.12	5.38	7.83	11.11	6.76	6.11	4.47	7.01	6.06	5.78	6.98	7.00	9.42	7.18

December 31, 2023 calculation

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

The payables turnover ratio for SiTime Corp fluctuated over the past eight quarters. In Q1 2023, the company had a significantly high payables turnover ratio of 11.11, suggesting that it took approximately 11.11 times during that quarter to pay off its accounts payable. This was a notable increase compared to the previous quarter's ratio of 7.83.

The payables turnover ratio then decreased in Q2 2023 to 7.83 before further declining in Q3 2023 to 5.38, indicating a slower rate of paying off accounts payable during those periods. However, the company managed to improve its payables turnover ratio in Q4 2023, reaching 7.12.

Overall, SiTime Corp demonstrated fluctuating patterns in managing its accounts payable efficiently, with room for improvement in streamlining its payment processes to potentially enhance its working capital management and relationship with suppliers.