Monolithic Power Systems Inc (MPWR)
Solvency ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| 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 | 1.15 | 1.19 | 1.23 | 1.27 | 1.25 |
The solvency ratios of Monolithic Power Systems Inc indicate a strong financial position with consistently low levels of debt relative to its assets, capital, and equity over the analyzed period from 2020 to 2024. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio remained at 0.00, suggesting that the company has been able to finance its operations primarily through equity and retained earnings rather than relying on external borrowings.
Furthermore, the Financial leverage ratio, which measures the company's reliance on debt financing, showed a decreasing trend from 1.25 in 2020 to 1.15 in 2024. This decline indicates a decreasing dependency on debt to support its operations and investments over the years. Overall, the solvency ratios reflect Monolithic Power Systems Inc's strong financial stability and ability to meet its financial obligations comfortably without being overly leveraged.
Coverage ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | — | — | 36.66 | 10.07 | 11.32 |
The interest coverage ratio for Monolithic Power Systems Inc has shown a generally positive trend over the analyzed period, reflecting the company's ability to meet its interest obligations from its operating income.
In December 2020, the interest coverage ratio was 11.32, indicating the company's operating income was more than sufficient to cover its interest expenses by over 11 times.
By December 2021, the ratio slightly decreased to 10.07, still demonstrating a healthy ability to meet interest payments.
A noteworthy improvement was observed by December 2022, with the interest coverage ratio significantly increasing to 36.66. This substantial rise suggests a substantial increase in operating income relative to interest expenses, indicating a strong financial position.
However, it is important to note that the data shows "— " (dash) for the interest coverage ratios for December 2023 and December 2024. This could indicate missing or insufficient data, making it harder to assess the company's ability to cover interest expenses in those years.
Overall, Monolithic Power Systems Inc has shown a positive interest coverage trend, with strong ratios in 2020 and 2022. However, the lack of data for 2023 and 2024 makes it more challenging to provide a complete assessment of the company's financial health in those years.