Monolithic Power Systems Inc (MPWR)
Solvency ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.19 | 1.23 | 1.27 | 1.25 | 1.24 |
The solvency ratios of Monolithic Power System Inc indicate a consistently low level of leverage and debt utilization over the past five years. The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio have all remained at 0.00, suggesting that the company has financed its operations primarily through equity rather than debt.
The financial leverage ratio has shown some fluctuation, with a slight decrease from 1.24 in 2019 to 1.19 in 2023. This ratio indicates that for every dollar of equity, the company has $1.19 of total assets, reflecting a moderate level of financial leverage. Despite this increase, the company's financial leverage remains relatively stable and well within a reasonable range.
Overall, Monolithic Power System Inc's solvency ratios demonstrate a conservative approach to capital structure, emphasizing a strong equity base and low reliance on debt financing. This conservative financial stance generally signifies a lower risk of financial distress and a solid financial position for the company.
Coverage ratios
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Interest coverage | — | 36.66 | 10.07 | 11.32 | 5.00 |
Based on the data provided, it appears that the interest coverage ratio for Monolithic Power System Inc is not available for the years 2019 to 2023. The interest coverage ratio assesses a company's ability to cover its interest expenses with its operating income. The absence of this ratio data indicates that we are unable to evaluate the company's capacity to meet its interest obligations relative to its earnings during these years. Lack of information on interest coverage may hinder a comprehensive assessment of Monolithic Power System Inc's financial health and leverage risk. Further details or additional financial metrics are required to provide a more in-depth analysis of the company's financial performance in terms of interest coverage.