Sitime Corporation (SITM)

Working capital turnover

Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Revenue US$ in thousands 202,697 143,993 283,605 218,808 116,156
Total current assets US$ in thousands 544,060 623,242 669,067 625,943 113,180
Total current liabilities US$ in thousands 108,449 121,394 33,794 37,385 19,145
Working capital turnover 0.47 0.29 0.45 0.37 1.24

December 31, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $202,697K ÷ ($544,060K – $108,449K)
= 0.47

The working capital turnover for Sitime Corporation has shown a declining trend over the past five years. In December 2020, the ratio was 1.24, indicating that the company generated $1.24 in revenue for every dollar of working capital invested. However, this figure dropped to 0.37 in December 2021, suggesting a decrease in efficiency in utilizing its working capital.

Subsequently, in the following years, there was a slight improvement in the working capital turnover ratio, reaching 0.45 in December 2022 and 0.47 in December 2024. Despite these improvements, the ratio remains significantly lower compared to the initial level in 2020.

The decreasing trend in the working capital turnover ratio may indicate that Sitime Corporation is facing challenges in efficiently utilizing its working capital to generate sales revenue. This could be a point of concern for the company as it may impact its overall financial performance and liquidity position. Further analysis and strategies may be required to enhance the company's working capital management efficiency.