Monolithic Power Systems Inc (MPWR)

Financial leverage ratio

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	3,617,100	2,854,740	2,648,130	2,578,700	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
Total stockholders’ equity	US$ in thousands	3,145,770	2,351,690	2,195,860	2,113,560	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
Financial leverage ratio		1.15	1.21	1.21	1.22	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

December 31, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,617,100K ÷ $3,145,770K
= 1.15

Monolithic Power Systems Inc's financial leverage ratio has shown a fluctuating trend over the analyzed period from March 31, 2020, to December 31, 2024. The ratio started at 1.24 in March 2020 and increased slightly to 1.29 by September 2021 before trending back down to 1.15 by December 31, 2024.

The financial leverage ratio measures the proportion of a company's debt to its equity and is an indicator of the company's financial risk. A higher ratio may signify higher financial risk due to increased reliance on debt financing, which can lead to potential difficulties in meeting debt obligations. Conversely, a lower ratio suggests a lower level of financial risk and stronger financial health.

In the case of Monolithic Power Systems Inc, the fluctuations in the financial leverage ratio indicate changes in the company's capital structure and its ability to manage debt effectively. Investors and stakeholders should closely monitor these changes to assess the company's financial risk and stability over time.