Monolithic Power Systems Inc (MPWR)

Activity ratios

Short-term

Turnover ratios

	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
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
Receivables turnover	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	11.42	10.26	9.77	10.20
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
Working capital turnover	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	1.13	1.19	1.23	1.16

Monolithic Power System Inc's activity ratios provide insight into how effectively the company manages its assets and liabilities to generate sales.

1. Inventory turnover: The company's inventory turnover has been relatively stable over the past eight quarters, ranging from 1.67 to 2.08. This indicates that on average, Monolithic Power System turns over its inventory approximately 1.81 times a quarter. A higher inventory turnover ratio suggests efficient inventory management and quicker sales of products.

2. Receivables turnover: Monolithic Power System's receivables turnover has fluctuated between 9.37 and 10.64 over the past two years. The company collects its accounts receivables an average of around 10 times a quarter. A higher receivables turnover ratio implies that the company efficiently collects payments from its customers.

3. Payables turnover: The payables turnover for Monolithic Power System has ranged from 7.93 to 13.43 over the past eight quarters. The company pays its suppliers an average of approximately 11.64 times a year. A higher payables turnover ratio suggests that the company is managing its trade payables effectively.

4. Working capital turnover: Monolithic Power System's working capital turnover has varied between 1.15 and 1.62. This ratio indicates that the company generates sales revenue around 1.43 times for every dollar of working capital invested. A higher working capital turnover ratio signifies efficient utilization of working capital.

Overall, Monolithic Power System Inc's activity ratios reflect a reasonable management of inventory, receivables, payables, and working capital to drive sales and support operations effectively. Additionally, the consistency in these ratios over the examined periods suggests stability in the company's operational efficiency.

Average number of days

		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
Days of inventory on hand (DOH)	days	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	164.61	177.52	196.03	191.67
Days of sales outstanding (DSO)	days	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	31.96	35.56	37.35	35.77
Number of days of payables	days	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	35.21	39.68	37.49	31.87

Days of inventory on hand (DOH) measures how many days it takes for a company to convert its inventory into sales. Monolithic Power System Inc's DOH has shown some fluctuation over the past several quarters, ranging from 175.07 days to 218.97 days. A decreasing trend in DOH is generally positive as it indicates faster inventory turnover.

Days of sales outstanding (DSO) reflects how long it takes for a company to collect payment from its customers. Monolithic Power System Inc's DSO has varied slightly, with a range of 32.29 days to 38.95 days. A lower DSO suggests effective credit and collection policies.

Number of days of payables represents the average number of days it takes for a company to pay its suppliers. Monolithic Power System Inc's days of payables have ranged from 27.17 days to 46.01 days. A longer period of payables may indicate that the company is effectively utilizing trade credit from suppliers.

Overall, Monolithic Power System Inc's activity ratios suggest that the company has been managing its inventory efficiently, collecting payments from customers in a timely manner, and effectively managing its payables. However, there may be room for improvement in optimizing inventory turnover and managing payables to further enhance the efficiency of its operations.

Long-term

	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
Fixed asset turnover	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	2.76	2.87	2.89	3.88
Total asset turnover	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	0.66	0.68	0.70	0.73

The fixed asset turnover ratio measures how efficiently a company is utilizing its fixed assets to generate sales. Monolithic Power System Inc's fixed asset turnover has been steadily increasing over the past eight quarters, with a range of 3.60 to 5.40. This indicates that the company has been able to generate more sales for each dollar invested in fixed assets, reflecting improved efficiency in utilizing its long-term assets.

On the other hand, the total asset turnover ratio indicates the company's ability to generate sales from all its assets, including both fixed and current assets. Monolithic Power System Inc's total asset turnover ratio has shown a slight fluctuation over the same period, ranging from 0.75 to 0.87. While the ratio has remained relatively stable, it is important to note that the company may not be utilizing all its assets as efficiently as its fixed assets alone.

Overall, Monolithic Power System Inc's increasing trend in fixed asset turnover reflects a positive development in its long-term asset management and operational efficiency. However, the company may benefit from further analysis to optimize the utilization of its total assets for improved overall performance.