Monolithic Power Systems Inc (MPWR)
Current ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| 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 |
| Current ratio | 7.74 | 5.36 | 4.96 | 5.73 | 6.67 |
December 31, 2023 calculation
Current ratio = Total current assets ÷ Total current liabilities
= $1,819,500K ÷ $235,035K
= 7.74
The current ratio of Monolithic Power System Inc has exhibited a fluctuating trend over the past five years. The company's current ratio has generally been strong, indicating a healthy liquidity position for meeting its short-term obligations.
In 2023, the current ratio improved significantly to 7.74, reflecting a substantial increase from the previous year's ratio of 5.36. This suggests that the company had a higher level of current assets relative to its current liabilities, indicating improved liquidity.
However, it's worth noting that the current ratio has shown some variability over the years, with fluctuations observed in both directions. Despite this, the company has maintained a generally strong current ratio above 4 in each of the past five years, which is considered a healthy level of liquidity.
Overall, based on the current ratio trend, Monolithic Power System Inc appears to be effectively managing its short-term liquidity and is in a favorable position to meet its near-term financial obligations.
Peer comparison
Dec 31, 2023