Analysis of Inventory
Inventory Disclosure
Monolithic Power Systems Inc., balance sheet: inventory
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
Total inventory levels experienced a period of rapid expansion between 2020 and 2022, increasing from $157.1 million to a peak of $447.3 million. Following this peak, a contraction occurred in 2023, with a subsequent increase to $419.6 million by the end of 2024, suggesting a period of recalibration in inventory management.
- Raw Materials
- A significant escalation was observed in 2022, where raw materials surged from $29.5 million to $126.8 million. Following this peak, a steady downward trajectory was recorded over the next two years, with levels declining to $91.9 million by December 31, 2024.
- Work in Process
- Work in process inventories demonstrated a general growth trend over the five-year period. Despite a moderate decrease in 2023 to $112.8 million, this category reached its highest recorded valuation of $170.0 million in 2024, indicating an increase in active production volume.
- Finished Goods
- Finished goods experienced a sharp increase from 2020 to 2022, reaching a peak of $186.5 million. This was followed by a correction in 2023 and relative stabilization, ending the period at $157.8 million in 2024.
The divergence in trends observed in 2024, characterized by declining raw material levels and a simultaneous peak in work in process, suggests a strategic shift toward converting existing stockpiles into finished products to meet operational demand.
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