Monolithic Power Systems Inc (MPWR)

Interest coverage

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Earnings before interest and tax (EBIT)	US$ in thousands	539,358	481,736	526,785	262,417	158,882
Interest expense	US$ in thousands	—	—	14,369	26,051	14,038
Interest coverage		—	—	36.66	10.07	11.32

December 31, 2024 calculation

Interest coverage = EBIT ÷ Interest expense
= $539,358K ÷ $—K
= —

Monolithic Power Systems Inc's interest coverage ratio has displayed a generally positive trend over the years, indicating the company's ability to meet its interest obligations comfortably. The interest coverage ratio was 11.32 in December 2020 and decreased slightly to 10.07 by December 2021 but then significantly improved to 36.66 by December 2022. The sharp increase in 2022 suggests a substantial improvement in the company's ability to cover its interest expenses. However, it's worth noting that the data for December 2023 and December 2024 is not available.

Overall, Monolithic Power Systems Inc's interest coverage ratio reflects a healthy financial position with strong ability to service its interest payments, especially highlighted by the significant improvement in 2022. Monitoring future developments in the interest coverage ratio will be essential to assess the company's ongoing financial health and ability to meet its debt obligations.