Monolithic Power Systems Inc (MPWR)

Quick 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
Cash	US$ in thousands	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	172,960	205,229	181,769	172,704
Short-term investments	US$ in thousands	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	282,437	213,511	177,255	204,577
Receivables	US$ in thousands	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	55,194	60,758	60,851	57,078
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
Quick ratio		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	5.20	4.57	4.58	5.40

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 been consistently strong over the past eight quarters, indicating the company's ability to meet its short-term obligations using its most liquid assets. The quick ratio has shown a gradual increasing trend from Q1 2022 to Q4 2023, with the ratio improving from 3.43 to 6.11.

A quick ratio above 1 indicates that the company has more than enough liquid assets to cover its current liabilities, suggesting a strong financial position and liquidity. Monolithic Power System Inc's quick ratio consistently above 3 over the past eight quarters demonstrates a robust liquidity position and ability to quickly meet its short-term obligations.

The improvement in the quick ratio over the quarters suggests efficient management of current assets and liabilities by the company. Investors and stakeholders may view this consistent increase positively as it reflects the company's ability to manage its working capital effectively and weather short-term financial challenges.