Sitime Corporation (SITM)

Working capital turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Revenue	US$ in thousands	143,993	283,605	218,808	116,156	84,074
Total current assets	US$ in thousands	623,242	669,067	625,943	113,180	99,662
Total current liabilities	US$ in thousands	121,394	33,794	37,385	19,145	53,311
Working capital turnover		0.29	0.45	0.37	1.24	1.81

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $143,993K ÷ ($623,242K – $121,394K)
= 0.29

The working capital turnover ratio measures how efficiently SiTime Corp is utilizing its working capital to generate sales. A higher ratio indicates that the company is able to generate more sales with a lower amount of working capital.

From the data provided, we can observe a decreasing trend in SiTime Corp's working capital turnover over the past five years. In 2019, the ratio was at its highest at 1.81, indicating that the company generated $1.81 in revenue for every dollar of working capital. However, the ratio has declined steadily in subsequent years, dropping to 0.29 in 2023.

The decreasing trend in the working capital turnover ratio suggests that SiTime Corp may be becoming less efficient in utilizing its working capital to generate sales. This could be a cause for concern as it may indicate inefficiencies in the company's operations or difficulties in managing working capital effectively.

Further analysis and comparison with industry benchmarks or competitors' ratios would provide more context and insight into SiTime Corp's performance and efficiency in managing its working capital.