Monolithic Power Systems Inc (MPWR)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	539,358	485,620	457,158	452,947	481,736	509,059	525,364	554,927	526,785	468,465	393,725	312,465	262,417	223,807	206,655	173,982	158,882	149,614	119,667	113,429
Interest expense (ttm)	US$ in thousands	0	5,297	5,297	5,297	10,594	9,288	12,872	16,205	14,369	13,913	13,379	12,816	11,637	10,356	9,617	9,235	9,327	9,171	6,860	4,472
Interest coverage		—	91.68	86.31	85.51	45.47	54.81	40.81	34.24	36.66	33.67	29.43	24.38	22.55	21.61	21.49	18.84	17.03	16.31	17.44	25.36

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $539,358K ÷ $0K
= —

Monolithic Power Systems Inc's interest coverage ratio has shown a generally positive trend over the past few years, indicating the company's ability to comfortably meet its interest obligations. The interest coverage ratio measures the company's ability to pay interest expenses on outstanding debt with its earnings before interest and taxes (EBIT).

The data provided shows that the interest coverage ratio increased from 25.36 in March 2020 to a peak of 91.68 in September 2024, reflecting a significant improvement in the company's ability to cover its interest expenses. This steady increase suggests that Monolithic Power Systems Inc's earnings have been consistently strong relative to its interest obligations.

However, it is worth noting that the interest coverage ratio dropped slightly in December 2024 to an unspecified value. While this missing data point may not provide a complete picture, the overall trend indicates a healthy financial position for the company in terms of its ability to handle interest payments with its operating income.

In conclusion, the data suggests that Monolithic Power Systems Inc has demonstrated an improving ability to cover its interest expenses over the analyzed period, which can be a positive indicator of the company's financial stability and profitability.