Monolithic Power Systems Inc (MPWR)

Payables 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
Payables	US$ in thousands	62,958	64,707	70,614	58,001	61,461	78,673	77,925	71,572	83,027	72,092	58,882	57,235	38,169	48,142	45,169	37,752	27,271	30,318	27,259	22,678
Payables turnover		12.71	12.20	11.08	13.43	12.13	8.85	8.07	7.93	6.29	6.71	7.86	7.30	9.92	7.25	6.83	7.63	10.37	9.20	9.74	11.45

December 31, 2023 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $799,953K ÷ $62,958K
= 12.71

To analyze Monolithic Power System Inc's payables turnover, we calculate the payables turnover ratio by dividing the cost of goods sold by the average accounts payable for the given period. A higher payables turnover ratio indicates that the company is managing its accounts payable efficiently and paying suppliers promptly.

From the table provided, we observe fluctuation in Monolithic Power System Inc's payables turnover ratio over the past eight quarters. The payables turnover ratio ranges from 7.93 to 13.43, indicating variability in the company's efficiency in managing its accounts payable.

In Q4 2023, the payables turnover ratio stands at 12.71, showcasing a high level of efficiency in paying off its suppliers relative to the cost of goods sold. This suggests that the company is effectively managing its accounts payable during this period.

In comparison, the payables turnover ratio was at its lowest in Q1 2022 at 7.93, indicating a slower rate of paying suppliers relative to the cost of goods sold. This could signify potential cash flow constraints or delays in supplier payments during that quarter.

Overall, Monolithic Power System Inc's payables turnover has shown fluctuations over the quarters, reflecting changes in the company's efficiency in managing its accounts payable. Investors and stakeholders should closely monitor these trends to assess the company's liquidity and operational effectiveness.