Monolithic Power Systems Inc (MPWR)

Days of inventory on hand (DOH)

		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	Sep 30, 2019	Mar 31, 2019	Dec 31, 2018
Inventory turnover		2.08	1.99	1.83	1.81	1.67	1.75	1.75	1.83	2.01	2.33	2.61	2.38	2.41	2.36	2.03	2.19	2.22	2.06	1.86	1.90
DOH	days	175.07	183.73	199.39	201.85	218.97	208.42	208.79	199.95	181.28	156.95	139.77	153.17	151.46	154.83	180.03	166.57	164.61	177.52	196.03	191.67

December 31, 2023 calculation

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

Monolithic Power System Inc's days of inventory on hand (DOH) has shown a declining trend over the past four quarters, indicating an improvement in inventory management efficiency. In Q4 2023, the DOH decreased to 175.07 days from 183.73 days in Q3 2023. This positive trend continued from Q2 2023, where the DOH was at 199.39 days, and Q1 2023, where it was at 201.85 days.

Comparing the current DOH to the same period last year, there has been a noticeable decrease in inventory holding period. In Q4 2022, the DOH was significantly higher at 218.97 days. The sequential improvement in DOH can be seen when comparing the latest quarter to the previous quarters in 2022, where the DOH ranged from 199.95 days to 208.79 days.

Overall, the decreasing trend in DOH for Monolithic Power System Inc indicates a more efficient management of inventory levels, which could lead to lower carrying costs, reduced risk of obsolescence, and improved cash flow.