Monolithic Power Systems Inc (MPWR)

Days of inventory on hand (DOH)

		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
Inventory turnover		2.35	2.15	1.98	2.05	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
DOH	days	155.30	170.10	184.01	177.76	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

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 shown varying trends over the specified time period. DOH represents the number of days a company takes to sell its average inventory, indicating how efficiently the company manages its inventory levels.

From March 31, 2020, the DOH stood at 166.57 days, gradually increasing to 208.79 days by June 30, 2022. This suggests that the company may have been holding inventory for a longer period, which could tie up capital and potentially lead to increased carrying costs.

However, from June 30, 2022, there was a slight decrease in DOH, reaching 155.30 days by December 31, 2024. This downward trend indicates an improvement in inventory management efficiency as the company was able to sell its inventory at a faster pace.

Overall, fluctuations in DOH may be influenced by factors such as production levels, sales demand, supply chain disruptions, and inventory management strategies. It is important for Monolithic Power Systems Inc to strike a balance between maintaining adequate inventory levels to meet customer demand and minimizing carrying costs to enhance profitability.