Sitime Corporation (SITM)
Activity ratios
Short-term
Turnover ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Receivables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Payables turnover | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Working capital turnover | 0.47 | 0.39 | 0.33 | 0.28 | 0.29 | 0.26 | 0.32 | 0.39 | 0.45 | 0.48 | 0.47 | 0.42 | 0.37 | 0.63 | 0.55 | 0.47 | 1.24 | 1.18 | 1.15 | 2.13 |
Inventory Turnover:
- Sitime Corporation's inventory turnover has been fluctuating over the years, ranging from a high of 4.71 in December 2020 to a low of 0.83 in March 2024.
- The decreasing trend in inventory turnover since December 2020 may indicate that the company is struggling to sell its inventory efficiently or may have excess inventory on hand.
Receivables Turnover:
- There is no data available for Sitime Corporation's receivables turnover, which makes it challenging to assess how efficiently the company is converting its credit sales into cash.
Payables Turnover:
- Similar to receivables turnover, there is no data provided for payables turnover, which makes it difficult to evaluate how quickly Sitime Corporation is paying its suppliers.
Working Capital Turnover:
- The working capital turnover ratio has shown a general decreasing trend from 2.13 in March 2020 to 0.47 in December 2021, indicating a decline in the company's efficiency in generating sales revenue relative to its working capital.
- The company's ability to utilize its working capital effectively to generate sales revenue has been weakening over the years, which may raise concerns about operational efficiency and liquidity management.
In summary, Sitime Corporation needs to address its declining inventory turnover and working capital turnover ratios to improve operational efficiency and liquidity management in the future. Additional insights could be gained by analyzing the missing data for receivables and payables turnover.
Average number of days
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 285.23 | 309.96 | 358.76 | 438.11 | 386.43 | 355.44 | 306.68 | 240.90 | 209.08 | 163.72 | 129.76 | 128.08 | 108.70 | 95.64 | 97.32 | 86.54 | 77.42 | 103.44 | 105.63 | 105.35 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
Based on the data provided for Sitime Corporation, let's analyze the activity ratios:
1. Days of Inventory on Hand (DOH):
- The DOH measures how many days of sales are held in inventory.
- Sitime Corporation's inventory turnover has been fluctuating over the past few years, with a noticeable increase from 77.42 days at the end of December 2020 to 438.11 days by the end of March 2024.
- A significant increase in DOH could indicate potential issues such as overstocking or slow-moving inventory, leading to liquidity concerns if inventory cannot be converted to sales efficiently.
2. Days of Sales Outstanding (DSO):
- DSO measures the average number of days it takes for the company to collect revenue after a sale is made.
- Data is not available for DSO in the provided information, indicating a lack of information on the collection efficiency of Sitime Corporation.
3. Number of Days of Payables:
- The number of days of payables measures how long it takes for the company to pay its suppliers.
- Unfortunately, there is no data on the number of days of payables available in the provided information, making it difficult to assess Sitime Corporation's payment practices and relationships with suppliers.
In conclusion, while the DOH data suggests some concerns about inventory management for Sitime Corporation, the lack of information on DSO and payables hinders a comprehensive analysis of the company's overall efficiency in managing its working capital and relationships with customers and suppliers.
Long-term
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| Total asset turnover | 0.23 | 0.20 | 0.18 | 0.15 | 0.15 | 0.22 | 0.27 | 0.34 | 0.38 | 0.40 | 0.39 | 0.36 | 0.32 | 0.50 | 0.46 | 0.40 | 0.85 | 0.81 | 0.62 | 0.71 |
Sitime Corporation's fixed asset turnover has fluctuated over the years, ranging from a low of 4.07 to a high of 9.92. This ratio indicates the company's efficiency in generating sales from its investment in fixed assets. The highest value of 9.92 recorded on December 31, 2020, suggests that Sitime Corporation was able to generate significant revenue relative to its investment in fixed assets during that period.
On the other hand, the total asset turnover ratio showed a declining trend from 0.71 on March 31, 2020, to 0.23 on December 31, 2024. This ratio reflects the company's ability to generate sales from its total assets. The decreasing trend may indicate that Sitime Corporation is becoming less efficient in utilizing its total assets to generate revenue over time.
Overall, while the fixed asset turnover ratio indicates that Sitime Corporation has had some periods of strong efficiency in utilizing its fixed assets to generate sales, the declining trend in the total asset turnover ratio raises some concerns about the company's overall asset utilization efficiency. Further analysis and comparison with industry benchmarks would be beneficial to assess the company's long-term asset management performance.