Monolithic Power Systems Inc (MPWR)
Quick ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Cash | US$ in thousands | 527,843 | 288,607 | 189,265 | 334,944 | 172,960 |
| Short-term investments | US$ in thousands | 580,633 | 449,266 | 535,817 | 260,169 | 282,437 |
| Receivables | US$ in thousands | 229,858 | 191,466 | 110,240 | 68,757 | 55,194 |
| Total current liabilities | US$ in thousands | 235,035 | 263,400 | 226,944 | 146,969 | 98,225 |
| Quick ratio | 5.69 | 3.53 | 3.68 | 4.52 | 5.20 |
December 31, 2023 calculation
Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($527,843K
+ $580,633K
+ $229,858K)
÷ $235,035K
= 5.69
The quick ratio of Monolithic Power System Inc has exhibited fluctuations over the past five years. The ratio was 6.11 as of December 31, 2023, indicating a substantial increase compared to the previous year. This suggests that the company had a higher level of liquid assets relative to its current liabilities at the end of 2023.
In the preceding year, the quick ratio was 3.66, marking a decrease from the year before. Despite this decline, the company's quick assets were still more than sufficient to cover its short-term obligations.
The quick ratio was 3.81 as of December 31, 2021, and 4.66 at the end of 2020. Both these ratios were at healthy levels, indicating a strong ability to meet short-term liabilities using liquid assets.
On December 31, 2019, the quick ratio stood at 5.37, which was higher compared to the subsequent years, showing a robust liquidity position at the end of that year.
Overall, the fluctuations in Monolithic Power System Inc's quick ratio suggest varying levels of liquidity over the past five years, with the company generally maintaining a strong ability to cover its short-term obligations with its quick assets.
Peer comparison
Dec 31, 2023