Sitime Corporation (SITM)
Cash conversion cycle
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Days of inventory on hand (DOH) | days | 285.23 | 386.43 | 209.08 | 108.70 | 77.42 |
| Days of sales outstanding (DSO) | days | — | — | — | — | — |
| Number of days of payables | days | — | — | — | — | — |
| Cash conversion cycle | days | 285.23 | 386.43 | 209.08 | 108.70 | 77.42 |
December 31, 2024 calculation
Cash conversion cycle = DOH + DSO – Number of days of payables
= 285.23 + — – —
= 285.23
The cash conversion cycle of Sitime Corporation has been fluctuating over the past five years. From December 31, 2020, with a relatively efficient cycle of 77.42 days, there was a notable increase to 108.70 days by December 31, 2021. This trend continued with a significant jump to 209.08 days by December 31, 2022, followed by a sharp rise to 386.43 days by December 31, 2023. However, by December 31, 2024, there was a decrease to 285.23 days.
The increasing trend in the cash conversion cycle indicates that Sitime Corporation may be taking longer to convert its investments in inventory into cash receipts. This could be a result of inefficiencies in managing inventory, collecting receivables, or paying its payables. The Company may need to focus on improving its working capital management and operational efficiency to shorten its cash conversion cycle, thereby maximizing its cash flow and liquidity position.
Peer comparison
Dec 31, 2024