Monolithic Power Systems Inc (MPWR)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	691,816	700,347	550,475	488,273	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
Short-term investments	US$ in thousands	171,130	762,003	756,770	798,116	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
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
Cash ratio		2.93	4.34	4.43	4.12	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

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($691,816K + $171,130K) ÷ $294,567K
= 2.93

The cash ratio of Monolithic Power Systems Inc has exhibited fluctuations over the period from March 31, 2020, to December 31, 2024. The ratio, which measures the company's ability to cover short-term liabilities using its cash and cash equivalents, started at 4.35 on March 31, 2020, indicating a strong liquidity position.

However, there were variations in the cash ratio throughout the subsequent quarters, with fluctuations occurring both upwards and downwards. Noteworthy points include a decrease to 3.26 on September 30, 2021, which suggests a possible temporary strain on the company's liquidity.

The ratio improved in the following quarters, reaching a peak of 4.72 on December 31, 2023, indicating a strong ability to cover short-term obligations with available cash.

It is important to note a decline in the cash ratio to 2.93 on December 31, 2024. While this figure is relatively lower compared to previous quarters, it is crucial to assess the company's overall liquidity position in conjunction with other financial metrics to gain a comprehensive understanding of its financial health.