Monolithic Power Systems Inc (MPWR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	527,843	421,178	506,959	488,972	288,607	316,210	342,867	260,604	189,265	226,091	220,210	218,368	334,944	179,466	156,483	154,880	172,960	205,229	181,769	172,704
Short-term investments	US$ in thousands	580,633	621,123	433,527	428,598	449,266	419,837	469,012	512,908	535,817	515,947	450,078	420,455	260,169	372,076	355,840	334,386	282,437	213,511	177,255	204,577
Total current liabilities	US$ in thousands	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	98,225	105,026	91,576	80,439
Cash ratio		4.72	4.17	3.75	2.91	2.80	2.53	3.19	2.84	3.19	3.26	3.67	3.40	4.05	3.48	3.75	4.35	4.64	3.99	3.92	4.69

December 31, 2023 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($527,843K + $580,633K) ÷ $235,035K
= 4.72

The cash ratio of Monolithic Power System Inc has shown a generally increasing trend over the past eight quarters, indicating an improvement in the company's ability to cover its short-term liabilities with cash and cash equivalents.

In Q4 2023, the cash ratio reached 5.34, indicating that the company had $5.34 in cash and cash equivalents for every $1 of current liabilities. This represents a significant increase from the cash ratio of 2.93 in Q4 2022.

The steady growth in the cash ratio reflects positively on the company's liquidity position and its ability to meet its short-term obligations without relying heavily on external financing. It suggests that Monolithic Power System Inc has been effectively managing its cash resources and maintaining a strong financial position.

Overall, the increasing trend in the cash ratio indicates a healthy liquidity position for Monolithic Power System Inc, which could enable the company to weather any potential financial challenges and pursue growth opportunities in the future.