Monolithic Power Systems Inc (MPWR)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	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	630,411	623,648	594,596	582,383
Property, plant and equipment	US$ in thousands	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	228,315	217,043	205,497	150,001
Fixed asset turnover		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	2.76	2.87	2.89	3.88

December 31, 2023 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $1,821,072K ÷ $368,952K
= 4.94

Monolithic Power System Inc's fixed asset turnover ratio has shown a fluctuating trend over the past eight quarters, ranging from a low of 3.60 in Q1 2022 to a high of 5.40 in Q2 2023. This ratio measures the efficiency of the company in generating revenue from its investment in fixed assets. A higher fixed asset turnover ratio indicates that the company is utilizing its fixed assets more effectively to generate sales.

In general, Monolithic Power System Inc has demonstrated a reasonably strong fixed asset turnover performance, consistently maintaining ratios above 4. This indicates that the company is efficiently utilizing its fixed assets to generate revenue, with the ratio peaking at 5.40 in Q2 2023.

The increasing trend from Q1 2022 to Q2 2023 suggests improving efficiency in utilizing fixed assets to drive revenue growth. However, the slight decline in Q3 2023 and Q4 2023 indicates a potential slowdown in this efficiency.

Overall, Monolithic Power System Inc's varying fixed asset turnover ratios reflect the company's effectiveness in utilizing its fixed assets to generate sales, with the recent trend showing improvements in efficiency, but with some fluctuations in performance. Business stakeholders may further investigate the reasons behind these fluctuations to understand the company's operational performance and future prospects.