Monolithic Power Systems Inc (MPWR)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Monolithic Power Systems Inc has consistently maintained a strong solvency position based on its solvency ratios. The Debt-to-assets ratio, Debt-to-capital ratio, and Debt-to-equity ratio have all remained at 0.00 throughout the analyzed periods, indicating that the company has no significant debt relative to its assets or capital. This demonstrates a low level of financial risk and a high level of financial stability.
Furthermore, the Financial leverage ratio has shown a decreasing trend over the analyzed periods, starting at 1.24 in March 2020 and reaching 1.15 by December 2024. This decreasing trend indicates that the company is relying less on debt financing and more on equity, which is generally viewed positively by investors as it reduces the company's financial risk and enhances its resilience to economic downturns.
Overall, the solvency ratios of Monolithic Power Systems Inc suggest a robust financial position with minimal debt levels and a gradually improving financial leverage ratio, highlighting the company's ability to meet its financial obligations and support future growth opportunities.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage is a key financial ratio that measures a company's ability to meet its interest payments on outstanding debt through its operating earnings. A higher interest coverage ratio indicates a stronger ability to meet interest obligations.
For Monolithic Power Systems Inc, the interest coverage ratio has shown a generally positive trend over the past few years. As of December 31, 2024, the interest coverage ratio was not provided in the data. However, looking at the historical data from March 31, 2020, to June 30, 2024, we can observe an increasing trend in the interest coverage ratio.
The interest coverage ratio increased from 25.36 on March 31, 2020, to 91.68 on September 30, 2024, indicating that the company's ability to cover its interest payments improved significantly over this period. This rise in the ratio suggests that Monolithic Power Systems Inc has been generating more operating earnings relative to its interest expense, which is a positive sign for its financial health.
Overall, the increasing trend in the interest coverage ratio for Monolithic Power Systems Inc demonstrates improved financial stability and a reduced risk of default on its debt obligations. Investors and creditors typically view a strong interest coverage ratio favorably, as it indicates the company's ability to comfortably manage its debt burden.
See also:
Monolithic Power Systems Inc Solvency Ratios (Quarterly Data)