Monolithic Power Systems Inc (MPWR)

Inventory turnover

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Cost of revenue	US$ in thousands	799,953	745,596	522,339	378,498	281,596
Inventory	US$ in thousands	383,702	447,290	259,417	157,062	127,500
Inventory turnover		2.08	1.67	2.01	2.41	2.21

December 31, 2023 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $799,953K ÷ $383,702K
= 2.08

Monolithic Power System Inc's inventory turnover ratio has shown some fluctuation over the past five years. In 2023, the inventory turnover ratio improved to 2.08, indicating that the company sold and replaced its inventory approximately 2.08 times during the year. This represents an increase from the previous year's ratio of 1.67.

The upward trend in inventory turnover from 2022 to 2023 suggests that Monolithic Power System Inc is managing its inventory more efficiently by either selling products faster or maintaining optimal inventory levels.

Comparing the current ratio to the ratios from 2021, 2020, and 2019, we can see that the inventory turnover ratio has remained relatively consistent in those years, ranging from 2.01 to 2.41. This indicates a stable performance in managing inventory turnover during this period.

Overall, the increasing trend in inventory turnover ratio for Monolithic Power System Inc is a positive indicator of the company's operational efficiency and effective management of inventory levels.