Monolithic Power Systems Inc (MPWR)
Receivables turnover
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 1,821,070 | 1,794,150 | 1,207,800 | 844,452 | 627,921 |
| Receivables | US$ in thousands | 229,858 | 191,466 | 110,240 | 68,757 | 55,194 |
| Receivables turnover | 7.92 | 9.37 | 10.96 | 12.28 | 11.38 |
December 31, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $1,821,070K ÷ $229,858K
= 7.92
The receivables turnover ratio measures how efficiently a company is able to collect payments from its customers. Monolithic Power System Inc's receivables turnover has fluctuated over the past five years, indicating changes in its receivables management.
In 2023, the receivables turnover ratio was 10.13, showing that the company collected its accounts receivables approximately 10.13 times during the year. This is a slight increase from 2022 when the ratio was 9.37. The increase in 2023 suggests that the company improved its efficiency in collecting payments from customers.
Looking further back, in 2021 and 2020, the receivables turnover ratios were 10.95 and 12.28 respectively, indicating a higher level of efficiency in collecting receivables during those years compared to 2023. However, in 2019, the ratio was 11.38, which was slightly lower than in 2023.
Overall, the trend in Monolithic Power System Inc's receivables turnover indicates some variability in its ability to collect payments from customers efficiently. It is important for the company to continually monitor and manage its accounts receivables to ensure a healthy cash flow and financial stability.
Peer comparison
Dec 31, 2023