Monolithic Power Systems Inc (MPWR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	2,207,100	2,039,447	1,894,195	1,827,892	1,821,072	1,827,072	1,847,623	1,867,499	1,794,148	1,670,640	1,498,744	1,331,057	1,207,798	1,104,337	1,040,237	933,129	844,452	778,147	687,538	642,692
Property, plant and equipment	US$ in thousands	494,945	436,265	400,534	375,573	368,952	358,226	341,911	354,313	357,157	343,123	356,687	369,374	362,962	340,060	332,093	297,741	281,528	270,310	251,980	236,807
Fixed asset turnover		4.46	4.67	4.73	4.87	4.94	5.10	5.40	5.27	5.02	4.87	4.20	3.60	3.33	3.25	3.13	3.13	3.00	2.88	2.73	2.71

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $2,207,100K ÷ $494,945K
= 4.46

The fixed asset turnover ratio for Monolithic Power Systems Inc has shown a consistent upward trend from March 31, 2020, to December 31, 2024. The ratio increased from 2.71 in March 31, 2020, to 4.46 in December 31, 2024. This indicates that the company has been effectively utilizing its fixed assets to generate sales revenue over this period.

A higher fixed asset turnover ratio suggests that the company is efficiently utilizing its fixed assets to generate revenue. The increasing trend observed in Monolithic Power Systems Inc's fixed asset turnover ratio signifies an improvement in the company's operational efficiency and effectiveness in generating sales from its fixed assets.

The latest fixed asset turnover ratio of 4.46 as of December 31, 2024, indicates that the company generated $4.46 in sales for every dollar invested in fixed assets. This reflects a strong performance in terms of asset utilization and efficiency in converting fixed assets into revenue. Overall, the trend in the fixed asset turnover ratio suggests that Monolithic Power Systems Inc has been successful in maximizing the productivity of its fixed assets over the analyzed period.