Monolithic Power Systems Inc (MPWR)

Days of inventory on hand (DOH)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Inventory turnover		2.08	1.67	2.01	2.41	2.21
DOH	days	175.07	218.97	181.28	151.46	165.26

December 31, 2023 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.08
= 175.07

The days of inventory on hand (DOH) for Monolithic Power System Inc have fluctuated over the past five years. In 2023, the company held inventory for an average of 175.07 days, representing a decrease from the previous year's DOH of 218.97 days. This reduction indicates that the company may have been managing its inventory more efficiently in 2023 compared to 2022.

Comparing 2023 to 2021 and 2020, there was an increase in DOH, suggesting that inventory management may have been less effective during those years. However, in 2023, the DOH was still lower than in 2022 and higher than in 2020, indicating some level of improvement in inventory turnover compared to those years.

Overall, the trend in DOH for Monolithic Power System Inc shows variability over the five-year period, with potential improvements in inventory management seen in 2023 compared to the previous year, although there may have been challenges in 2020 and 2021. Further analysis of the company's operations and market conditions would be necessary to fully understand the reasons behind these fluctuations in DOH.