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