Monolithic Power Systems Inc (MPWR)

Financial leverage 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
Total assets	US$ in thousands	2,434,350	2,328,090	2,220,620	2,226,650	2,058,880	1,931,220	1,785,690	1,713,980	1,585,820	1,495,900	1,372,990	1,308,190	1,208,490	1,161,290	1,071,160	1,007,500	956,375	916,135	848,209	793,432
Total stockholders’ equity	US$ in thousands	2,049,940	1,944,860	1,839,090	1,776,260	1,668,600	1,530,710	1,423,120	1,326,110	1,243,980	1,162,710	1,087,360	1,021,580	966,587	914,569	848,945	813,190	773,491	734,428	680,251	640,093
Financial leverage ratio		1.19	1.20	1.21	1.25	1.23	1.26	1.25	1.29	1.27	1.29	1.26	1.28	1.25	1.27	1.26	1.24	1.24	1.25	1.25	1.24

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $2,434,350K ÷ $2,049,940K
= 1.19

The financial leverage ratio of Monolithic Power System Inc has fluctuated over the past eight quarters, ranging from 1.19 to 1.29. The trend indicates that the company's level of financial leverage has slightly decreased in recent quarters, as seen by the decline from 1.29 in Q1 2022 to 1.19 in Q4 2023.

A financial leverage ratio above 1 signifies that the company relies more on debt financing than equity. Despite the fluctuations, the ratios have generally remained relatively close to each other, suggesting that Monolithic Power System Inc has maintained a stable balance between debt and equity in its capital structure.

It is important for investors and stakeholders to monitor the financial leverage ratio as it can indicate the company's risk exposure and ability to meet its financial obligations. A decreasing trend in the financial leverage ratio may signal improved financial stability, as long as it is supported by sustainable growth and profitability.