Sitime Corporation (SITM)

Receivables 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
Revenue (ttm)	US$ in thousands	143,994	162,430	200,005	251,695	283,605	298,507	288,441	253,519	218,808	183,341	152,979	129,956	116,156	103,971
Receivables	US$ in thousands	21,861	25,182	15,769	21,464	41,229	44,896	38,724	30,651	38,376	32,471	27,681	23,190	24,656	17,962	13,582	16,385	18,732
Receivables turnover		6.59	6.45	12.68	11.73	6.88	6.65	7.45	8.27	5.70	5.65	5.53	5.60	4.71	5.79

December 31, 2023 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $143,994K ÷ $21,861K
= 6.59

SiTime Corp's receivables turnover ratio has shown fluctuations over the past eight quarters. In Q4 2023, the receivables turnover was 6.59, indicating that the company collected its accounts receivable approximately 6.59 times during the quarter. This was slightly higher than in Q3 2023 when the ratio was 6.45.

The high receivables turnover ratio in Q2 2023 at 12.68 suggests that SiTime Corp was able to efficiently collect its accounts receivable almost 12.68 times during that quarter. This was significantly higher compared to the other quarters in the dataset.

In general, a higher receivables turnover ratio is considered favorable as it indicates that the company is collecting its outstanding receivables quickly. However, a very high ratio may also indicate overly aggressive credit policies that could potentially lead to reduced sales.

SiTime Corp's receivables turnover ratio has varied over the quarters, showing some level of consistency but also some fluctuations. It would be important for the company to monitor this ratio closely to ensure that its accounts receivable management remains effective.