Monolithic Power Systems Inc (MPWR)
Interest coverage
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 481,736 | 526,785 | 262,417 | 158,882 | 102,562 |
| Interest expense | US$ in thousands | — | 14,369 | 26,051 | 14,038 | 20,497 |
| Interest coverage | — | 36.66 | 10.07 | 11.32 | 5.00 |
December 31, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $481,736K ÷ $—K
= —
As the interest coverage ratio for Monolithic Power System Inc is not provided in the table for the years 2019 to 2023, it is not possible to conduct a direct analysis of the company's ability to cover its interest expenses using this specific financial metric.
The interest coverage ratio is a critical financial ratio that indicates a company's ability to meet interest payments on its outstanding debt obligations. A higher interest coverage ratio typically signifies a company's stronger ability to cover its interest expenses with its operating income.
To assess Monolithic Power System Inc's financial health regarding its ability to cover interest expenses, it would be essential to calculate the interest coverage ratio based on the company's operating income and interest expenses for the respective years. This ratio can provide insights into the company's debt servicing capabilities and its overall financial stability.
Peer comparison
Dec 31, 2023