Monolithic Power Systems Inc (MPWR)

Debt-to-capital ratio

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	3,145,770	2,049,940	1,668,600	1,243,980	966,587
Debt-to-capital ratio		0.00	0.00	0.00	0.00	0.00

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $—K ÷ ($—K + $3,145,770K)
= 0.00

The debt-to-capital ratio for Monolithic Power Systems Inc has consistently been reported as 0.00 from December 31, 2020, to December 31, 2024. This suggests that the company has not utilized debt as a significant source of financing compared to its equity. A debt-to-capital ratio of 0.00 indicates that the company's capital structure is predominantly composed of equity, reflecting a strong financial position with minimal reliance on debt funding. This could indicate lower financial risk and potentially lower interest expenses for the company. However, it is important to consider other factors such as the cost of capital, business strategy, and industry norms when evaluating the implications of a low debt-to-capital ratio.