Monolithic Power Systems Inc (MPWR)

Current 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
Total current assets	US$ in thousands	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	655,206	629,295	574,085	580,810
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
Current ratio		7.74	6.94	6.51	5.14	5.36	4.55	5.23	4.58	4.96	4.68	5.20	4.91	5.73	5.18	5.47	6.27	6.67	5.99	6.27	7.22

December 31, 2023 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $1,819,500K ÷ $235,035K
= 7.74

Monolithic Power System Inc's current ratio has shown a consistent upward trend over the past eight quarters. The current ratio measures the company's ability to cover its short-term obligations with its current assets.

As of Q4 2023, the current ratio stands at 7.74, indicating that the company has $7.74 in current assets for every $1 of current liabilities. This suggests a strong liquidity position and the ability to easily meet its short-term financial obligations.

The current ratio has steadily improved from Q1 2022, where it was at 4.58, reaching its peak in Q4 2023. This trend indicates that Monolithic Power System Inc has been effectively managing its current assets and liabilities during this period.

Overall, the consistent increase in the current ratio reflects positively on the company's financial health and liquidity position, indicating a strong ability to meet its short-term obligations.