Monolithic Power Systems Inc (MPWR)

Days of inventory on hand (DOH)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Inventory turnover		2.35	2.08	1.67	2.01	2.41
DOH	days	155.30	175.07	218.97	181.28	151.46

December 31, 2024 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 2.35
= 155.30

Monolithic Power Systems Inc's days of inventory on hand (DOH) has fluctuated over the past five years.

In December 2020, the company held inventory for an average of 151.46 days before selling it. By December 2021, this figure increased to 181.28 days, suggesting a potential buildup of inventory or slower turnover.

The trend continued into 2022, with inventory being held for an average of 218.97 days, reflecting a significant increase compared to the previous year.

However, by December 2023, the DOH decreased to 175.07 days, indicating a potential improvement in inventory management efficiency or a reduction in excess inventory levels.

Subsequently, in December 2024, the DOH further decreased to 155.30 days, possibly indicating more effective inventory control or faster inventory turnover.

Overall, Monolithic Power Systems Inc's DOH trend indicates fluctuations in inventory management efficiency over the five-year period, with efforts potentially made to optimize inventory levels and turnover rates.