Sitime Corporation (SITM)
Working capital 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 | |||
Total current assets | US$ in thousands | 623,242 | 666,901 | 662,977 | 666,544 | 669,067 | 662,208 | 660,779 | 637,748 | 625,943 | 323,054 | 302,557 | 297,699 | 113,180 | 105,353 | 132,430 | 104,971 | 99,662 |
Total current liabilities | US$ in thousands | 121,394 | 31,280 | 30,462 | 25,206 | 33,794 | 35,004 | 43,617 | 34,073 | 37,385 | 33,436 | 23,739 | 21,740 | 19,145 | 17,565 | 48,337 | 62,335 | 53,311 |
Working capital turnover | 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 |
December 31, 2023 calculation
Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $143,994K ÷ ($623,242K – $121,394K)
= 0.29
Working capital turnover is an efficiency ratio that measures how effectively a company is utilizing its working capital to generate revenue.
Based on the data provided for SiTime Corp, we observe that the working capital turnover has been fluctuating over the past eight quarters. The ratio has ranged from a low of 0.26 in Q3 2023 to a high of 0.48 in Q3 2022.
A decreasing trend in the working capital turnover ratio, such as the decline from Q1 2023 to Q4 2023, may indicate that the company is taking longer to convert its working capital into sales revenue. This could imply inefficiencies in managing inventory, accounts receivable, or accounts payable.
Conversely, an increasing trend in the ratio, as seen from Q4 2022 to Q2 2023, suggests that SiTime Corp has been improving its working capital management efficiency. A higher turnover ratio typically indicates that the company is generating more revenue per unit of working capital employed.
Overall, fluctuations in the working capital turnover ratio should be further analyzed in conjunction with other financial metrics to assess the company's overall financial health and operational efficiency.
Peer comparison
Dec 31, 2023