Monolithic Power Systems Inc (MPWR)

Inventory 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
Cost of revenue (ttm)	US$ in thousands	799,953	789,267	782,457	779,047	745,596	696,023	628,718	567,777	522,339	483,878	463,049	417,563	378,498	349,131	308,404	288,145	282,718	278,873	265,415	259,713
Inventory	US$ in thousands	383,702	397,288	427,432	430,830	447,290	397,435	359,647	311,040	259,417	208,062	177,322	175,223	157,062	148,096	152,119	131,499	127,500	135,634	142,543	136,384
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

December 31, 2023 calculation

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

Inventory turnover measures how efficiently a company manages its inventory by indicating how many times in a year the company sells and replaces its inventory. A higher inventory turnover ratio generally signifies better inventory management.

For Monolithic Power System Inc, the inventory turnover has fluctuated over the past eight quarters. In Q4 2023, the inventory turnover was 2.08, which indicates that the company sold and replaced its inventory approximately 2.08 times during that quarter. This is higher than the previous quarter's 1.99.

Overall, the trend in inventory turnover for Monolithic Power System Inc has shown some variability but has generally been consistent around 1.7 to 1.9 over the past two years. This suggests that the company is maintaining a moderate level of efficiency in managing its inventory. However, it is important to compare this ratio with industry benchmarks to gain a better understanding of Monolithic Power System Inc's performance relative to its peers.