Monolithic Power Systems Inc (MPWR)

Number of days of payables

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Payables turnover		9.62	12.71	12.13	6.29	9.92
Number of days of payables	days	37.94	28.73	30.09	58.02	36.81

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 9.62
= 37.94

Monolithic Power Systems Inc's number of days of payables has displayed some fluctuation over the years. As of December 31, 2020, the company took approximately 36.81 days to pay its creditors, showing a moderate payment period. This figure increased significantly by December 31, 2021, to approximately 58.02 days, indicating a lengthened payment cycle, which could potentially strain the company's liquidity.

However, the trend reversed by December 31, 2022, where the number of days of payables decreased notably to around 30.09 days. This suggests a more efficient management of payables, potentially improving the company's cash flow position. Subsequently, by December 31, 2023, the number of days of payables decreased further to approximately 28.73 days, indicating a continued efficiency in managing its payment obligations.

By December 31, 2024, the number of days of payables slightly increased to around 37.94 days. While still within a reasonable range, it is worth monitoring to ensure it does not lead to cash flow challenges or strained relationships with suppliers.

Overall, Monolithic Power Systems Inc's management of payables has shown variability but generally indicates an ability to adapt and optimize its payment processes to maintain a healthy financial position.