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.
Peer comparison
Dec 31, 2024