Monolithic Power Systems Inc (MPWR)

Number of days of payables

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Payables turnover		12.71	12.13	6.29	9.92	10.33
Number of days of payables	days	28.73	30.09	58.02	36.81	35.35

December 31, 2023 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.71
= 28.73

The number of days of payables for Monolithic Power System Inc has fluctuated over the past five years. In 2023, the company's number of days of payables decreased to 28.73 days from 30.09 days in 2022. This implies that in 2023, the company took an average of 28.73 days to pay its trade payables, demonstrating a slight improvement in the efficiency of managing its accounts payable.

Comparing to previous years, in 2021 the number of days of payables was relatively high at 58.02 days, followed by a decrease in 2022 to 30.09 days. This suggests that the company took longer to pay its trade payables in 2021, possibly indicating a delay in managing its accounts payable during that period.

In contrast, in 2020 and 2019, Monolithic Power System Inc showed more consistent performance in managing its payables, with 36.81 days and 35.35 days of payables, respectively. Overall, the decreasing trend in the number of days of payables from 2021 to 2023 implies potential improvements in the company's ability to efficiently manage its accounts payable in recent years.