Monolithic Power Systems Inc (MPWR)

Working capital 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
Total current assets	US$ in thousands	1,819,500	1,410,620	1,124,850	841,998	655,206
Total current liabilities	US$ in thousands	235,035	263,400	226,944	146,969	98,225
Working capital turnover		1.15	1.56	1.35	1.21	1.13

December 31, 2023 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $1,821,070K ÷ ($1,819,500K – $235,035K)
= 1.15

Monolithic Power System Inc's working capital turnover has fluctuated over the past five years. The company's working capital turnover was highest in 2022 at 1.56, indicating that the company generated $1.56 for every $1 of working capital invested. This suggests strong efficiency in utilizing its working capital to generate sales revenue.

However, in 2023, the working capital turnover decreased to 1.15, indicating a lower level of efficiency in turning working capital into sales compared to the previous year. Despite this decrease, the company still managed to generate $1.15 for every $1 of working capital invested.

Overall, Monolithic Power System Inc's working capital turnover has shown some variability over the years, but the company generally maintains a decent level of efficiency in utilizing its working capital to drive sales. It is important for the company to monitor and manage its working capital effectively to optimize its financial performance and generate sustainable growth.