Monolithic Power Systems Inc (MPWR)

Total asset 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
Total assets	US$ in thousands	3,617,100	2,854,740	2,648,130	2,578,700	2,434,350	2,328,090	2,220,620	2,226,650	2,058,880	1,931,220	1,785,690	1,713,980	1,585,820	1,495,900	1,372,990	1,308,190	1,208,490	1,161,290	1,071,160	1,007,500
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

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $2,207,100K ÷ $3,617,100K
= 0.61

Total asset turnover measures how efficiently a company generates revenue from its total assets. A higher total asset turnover ratio indicates that the company is effectively utilizing its assets to generate sales.

In the case of Monolithic Power Systems Inc, the total asset turnover ratio has shown a generally increasing trend over the past few years, starting from 0.64 in March 2020 and reaching 0.61 by December 2024. This implies that the company has become more efficient in generating sales from its assets during this period.

Despite some fluctuations, the overall trend suggests that Monolithic Power Systems Inc has been able to improve its asset utilization efficiency, resulting in a higher total asset turnover ratio. This could be attributed to effective management of assets and operations to enhance sales performance relative to asset levels, which is a positive indicator for the company's operational efficiency.