Monolithic Power Systems Inc (MPWR)

Quick 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	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
Receivables	US$ in thousands	232,518	164,704	157,890	194,428	229,858	189,513	173,601	187,811	191,466	161,080	132,581	126,951	110,240	83,953	80,636	86,185	68,757	96,138	57,983	56,871
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
Quick ratio		3.72	4.83	4.96	4.75	5.69	4.93	4.44	3.50	3.53	3.08	3.71	3.30	3.68	3.63	4.11	3.86	4.52	4.09	4.17	4.85

December 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($691,816K + $171,130K + $232,518K) ÷ $294,567K
= 3.72

The quick ratio of Monolithic Power Systems Inc, a measure of its short-term liquidity, demonstrates a generally strong position for the company over the reported periods. The quick ratio has consistently remained above 1, indicating the company's ability to meet its short-term obligations using its most liquid assets. The ratio has fluctuated within a range of approximately 3 to 5 over the last few years, suggesting the company has a sufficient level of liquid assets relative to its current liabilities. However, there was a slight decline in the quick ratio towards the end of the reporting period, from 5.69 in December 2023 to 3.72 in December 2024, which may warrant further monitoring to ensure the company's continued ability to cover its short-term liabilities.