Monolithic Power Systems Inc (MPWR)

Total asset turnover

		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
Revenue (ttm)	US$ in thousands	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	630,411	623,648	594,596	582,383
Total assets	US$ in thousands	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	956,375	916,135	848,209	793,432
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

December 31, 2023 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $1,821,072K ÷ $2,434,350K
= 0.75

The total asset turnover ratio measures the efficiency with which a company utilizes its total assets to generate revenue. A higher ratio indicates better asset utilization.

In the case of Monolithic Power System Inc, the total asset turnover has fluctuated over the past eight quarters. The ratio ranged from 0.75 in Q4 2023 to 0.87 in Q4 2022. The trend shows a slight decline over the most recent quarters, with the ratio decreasing from 0.84 in Q2 2023 to 0.75 in Q4 2023.

While the company's total asset turnover was relatively high in Q4 2022 and Q3 2022 at 0.87, indicating efficient utilization of assets to generate revenue, it dipped in the following quarters. The decrease in total asset turnover may suggest that Monolithic Power System Inc is not generating as much revenue relative to its total assets.

Overall, the total asset turnover ratio for Monolithic Power System Inc has shown variability, with a recent declining trend, which may prompt further analysis to determine the underlying causes and implications for the company's operations and financial performance.