Monolithic Power Systems Inc (MPWR)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	2,207,100	2,039,447	1,894,195	1,827,892	1,821,072	1,827,072	1,847,623	1,867,499	1,794,148	1,670,640	1,498,744	1,331,057	1,207,798	1,104,337	1,040,237	933,129	844,452	778,147	687,538	642,692
Receivables	US$ in thousands	232,518	164,704	157,890	194,428	229,858	189,513	173,601	187,811	191,466	161,080	132,581	126,951	110,240	83,953	80,636	86,185	68,757	96,138	57,983	56,871
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

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $2,207,100K ÷ $232,518K
= 9.49

The receivables turnover ratio measures how efficiently a company is able to collect outstanding receivables from its customers during a specific period. A higher turnover ratio generally indicates that the company is collecting its receivables at a faster rate.

Analyzing the receivables turnover ratio of Monolithic Power Systems Inc over the past few years, we observe fluctuations in the ratio. The ratio ranged from a low of 7.92 at December 31, 2023, to a high of 13.15 at September 30, 2021.

Overall, the company's receivables turnover ratio appears to have experienced some variability, possibly indicative of changing customer payment patterns or the company's credit policies. It would be important for stakeholders to monitor these trends over time to ensure that the efficiency of receivables collection remains at satisfactory levels.