Monolithic Power Systems Inc (MPWR)

Working capital 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 current assets	US$ in thousands	1,565,050	2,160,450	1,997,430	1,976,490	1,819,500	1,735,380	1,632,350	1,622,630	1,410,620	1,323,460	1,332,090	1,247,140	1,124,850	1,064,490	950,080	922,430	841,998	819,143	748,864	704,785
Total current liabilities	US$ in thousands	294,567	336,588	295,159	311,880	235,035	250,018	250,841	315,843	263,400	290,988	254,487	272,528	226,944	227,663	182,731	187,909	146,969	158,278	136,785	112,495
Working capital turnover		1.74	1.12	1.11	1.10	1.15	1.23	1.34	1.43	1.56	1.62	1.39	1.37	1.35	1.32	1.36	1.27	1.21	1.18	1.12	1.09

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $2,207,100K ÷ ($1,565,050K – $294,567K)
= 1.74

The working capital turnover of Monolithic Power Systems Inc has shown a fluctuating trend over the period from March 31, 2020, to December 31, 2024. The ratio has generally increased from 1.09 on March 31, 2020, to a peak of 1.74 on December 31, 2024, with some fluctuations in between.

A working capital turnover ratio above 1 indicates that the company is effectively utilizing its working capital to generate sales revenue. The increase in the ratio over time suggests an improvement in the company's efficiency in managing its working capital to support its operations and generate sales.

However, it is important to note the fluctuations in the ratio, which may indicate changes in the company's working capital management practices or the nature of its business operations. Further analysis of the company's financial statements and operational activities may provide additional insights into the factors driving these fluctuations in the working capital turnover ratio.