Sitime Corporation (SITM)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Revenue (ttm)	US$ in thousands	202,697	176,989	154,811	138,673	143,994	162,431	200,006	251,696	283,606	298,507	288,441	253,519	218,808	183,341	152,979	129,956	116,156	103,971	96,629	90,999
Total current assets	US$ in thousands	544,060	545,745	553,567	618,175	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
Total current liabilities	US$ in thousands	108,449	94,920	80,363	119,397	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
Working capital turnover		0.47	0.39	0.33	0.28	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	1.15	2.13

December 31, 2024 calculation

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

The working capital turnover ratio for Sitime Corporation has experienced fluctuations over the periods analyzed. The ratio measures how efficiently the company is utilizing its working capital to generate sales revenue. A higher ratio indicates better efficiency in turning working capital into sales.

From March 31, 2020, to December 31, 2021, the working capital turnover ratio gradually declined from 2.13 to 0.37. This indicates a significant decrease in the efficiency of Sitime Corporation in utilizing its working capital during this period.

However, from March 31, 2022, to December 31, 2024, there was a slight improvement in the working capital turnover ratio, reaching 0.47 by the end of December 31, 2024. Despite the increase in the ratio towards the end of the period, it is still lower compared to the starting point in March 31, 2020.

The declining trend between 2020 and 2021 may signal potential inefficiencies in managing working capital, leading to decreased sales generation. The subsequent improvement from 2022 to 2024 suggests efforts to enhance working capital utilization. Sitime Corporation may need to continue monitoring and optimizing its working capital management practices to achieve better efficiency in the future.