Monolithic Power Systems Inc (MPWR)

Activity ratios

Short-term

Turnover ratios

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Inventory turnover	2.35	2.15	1.98	2.05	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
Receivables turnover	9.49	12.38	12.00	9.40	7.92	9.64	10.64	9.94	9.37	10.37	11.30	10.48	10.96	13.15	12.90	10.83	12.28	8.09	11.86	11.30
Payables turnover	9.62	7.87	8.47	7.86	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
Working capital turnover	1.74	1.12	1.11	1.10	1.15	1.23	1.34	1.43	1.56	1.62	1.39	1.37	1.35	1.32	1.36	1.27	1.21	1.18	1.12	1.09

Monolithic Power Systems Inc's inventory turnover ratio has shown fluctuations over the years, starting at 2.19 in March 31, 2020, reaching a peak of 2.61 in June 30, 2021, and then decreasing to 2.35 by December 31, 2024. The decline in the inventory turnover ratio indicates a decrease in the efficiency of managing and selling inventory.

In terms of receivables turnover, the company experienced variability as well, with a high of 13.15 in September 30, 2021, and a low of 7.92 in December 31, 2023. This ratio measures how efficiently the company collects on credit sales, and the downward trend suggests potential issues with collecting receivables promptly.

The payables turnover ratio for Monolithic Power Systems Inc has also displayed fluctuations, with the highest value of 13.43 in March 31, 2023, and the lowest of 6.29 in December 31, 2021. A higher turnover ratio indicates that the company is paying off its suppliers more frequently, which can have implications for cash flow management and relationships with suppliers.

Lastly, the working capital turnover ratio, reflecting how effectively the company is utilizing its working capital to generate sales, showed some volatility, varying from 1.15 in December 31, 2023, to 1.74 in December 31, 2024. A lower working capital turnover ratio suggests that the company is not efficiently using its current assets to generate revenue.

Overall, the analysis of Monolithic Power Systems Inc's activity ratios points to varying levels of efficiency in managing inventory, receivables, payables, and working capital over the years, which could impact the company's operational performance and financial health.

Average number of days

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Days of inventory on hand (DOH)	days	155.30	170.10	184.01	177.76	175.07	183.73	199.39	201.85	218.97	208.42	208.79	199.95	181.28	156.95	139.77	153.17	151.46	154.83	180.03	166.57
Days of sales outstanding (DSO)	days	38.45	29.48	30.42	38.82	46.07	37.86	34.30	36.71	38.95	35.19	32.29	34.81	33.31	27.75	28.29	33.71	29.72	45.09	30.78	32.30
Number of days of payables	days	37.94	46.38	43.07	46.45	28.73	29.92	32.94	27.17	30.09	41.26	45.24	46.01	58.02	54.38	46.41	50.03	36.81	50.33	53.46	47.82

Based on the provided data, we can analyze the activity ratios of Monolithic Power Systems Inc as follows:

1. Days of Inventory on Hand (DOH):
- Monolithic Power Systems Inc's days of inventory on hand have fluctuated over the years. The company had an increasing trend in DOH from March 2020 to December 2024. This indicates that the company took longer to sell its inventory or was carrying excess inventory during this period. However, there was a slight decrease in DOH from September 2023 to December 2024.

2. Days of Sales Outstanding (DSO):
- The days of sales outstanding for Monolithic Power Systems Inc varied throughout the years. The company had relatively stable DSO from March 2020 to September 2021, with some fluctuations. There was a noticeable increase in DSO from September 2021 to December 2023, suggesting that the company took longer to collect its accounts receivable. However, there was a decrease in DSO from December 2023 to December 2024.

3. Number of Days of Payables:
- Monolithic Power Systems Inc's number of days of payables has shown fluctuations over the years. The company had a slightly increasing trend in days of payables from March 2020 to September 2022. This indicates that the company took longer to pay its suppliers during this period. However, there was a significant decrease in days of payables from September 2022 to December 2022. The days of payables remained relatively stable from December 2022 to December 2024.

Overall, an analysis of the activity ratios suggests that Monolithic Power Systems Inc may have experienced some challenges in managing its inventory, receivables, and payables efficiently during the period under review. The company should monitor these ratios closely to ensure optimal working capital management and operational efficiency.

Long-term

	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Fixed asset turnover	4.46	4.67	4.73	4.87	4.94	5.10	5.40	5.27	5.02	4.87	4.20	3.60	3.33	3.25	3.13	3.13	3.00	2.88	2.73	2.71
Total asset turnover	0.61	0.71	0.72	0.71	0.75	0.78	0.83	0.84	0.87	0.87	0.84	0.78	0.76	0.74	0.76	0.71	0.70	0.67	0.64	0.64

Monolithic Power Systems Inc's Fixed Asset Turnover has shown a consistent increasing trend over the years, indicating that the company is generating more revenue from its fixed assets. This ratio increased from 2.71 in March 2020 to 4.46 in December 2024. The peak of this ratio was observed in March 2024 at 5.27, signifying the company's ability to efficiently utilize its fixed assets to generate sales.

In terms of Total Asset Turnover, the ratio fluctuated within a range over the years, starting at 0.64 in March 2020 and ending at 0.61 in December 2024. The highest ratio was recorded in June 2022 at 0.87. Although there were fluctuations, the trend shows a slight decline in recent periods.

Overall, the Fixed Asset Turnover ratio reflects Monolithic Power Systems Inc's effective utilization of fixed assets to generate revenue, while the Total Asset Turnover ratio provides insights into the company's overall efficiency in generating sales from all its assets. The company should continue to focus on optimizing asset utilization to improve its operational performance.