Monolithic Power Systems Inc (MPWR)
Debt-to-capital ratio
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 2,049,940 | 1,668,600 | 1,243,980 | 966,587 | 773,491 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
December 31, 2023 calculation
Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $2,049,940K)
= 0.00
The debt-to-capital ratio of Monolithic Power System Inc has consistently been 0.00 over the past five years, from 2019 to 2023. This indicates that the company has not utilized any debt to finance its operations relative to its capital structure during this period. A debt-to-capital ratio of 0.00 suggests that the company relies solely on equity financing, indicating a lower financial risk as there is no debt to repay and no associated interest expenses. However, it's important to note that a debt-to-capital ratio of 0.00 could also mean that the company has little leverage which might limit its financial flexibility and growth opportunities compared to peers with a moderate level of debt. Overall, a consistent 0.00 debt-to-capital ratio reflects a conservative financing strategy by Monolithic Power System Inc.
Peer comparison
Dec 31, 2023