Monolithic Power Systems Inc. (NASDAQ:MPWR)

Land

The value of land shows a consistent upward trend from 35,432 thousand US dollars in 2020 to 50,681 thousand US dollars in 2024, indicating gradual acquisition or revaluation over the period.

Production Equipment and Software

This category demonstrates a strong growth trajectory, increasing from 163,317 thousand US dollars in 2020 to 340,691 thousand US dollars in 2024. The rise is particularly noticeable between 2023 and 2024, suggesting significant investment in production capabilities or software assets.

Buildings and Improvements

Values increase from 142,869 thousand US dollars in 2020 to 224,490 thousand US dollars in 2024, with a slight dip observed in 2022. Overall, the trend reflects expansion or upgrading of physical infrastructure.

Transportation Equipment

This category remains relatively stable from 2020 to 2023, hovering near 28,600 thousand US dollars, followed by a pronounced increase to 72,044 thousand US dollars in 2024. This spike likely indicates recent acquisitions or upgrades in the transportation fleet.

Leasehold Improvements

The value of leasehold improvements shows variability, increasing steadily until 2022 where it peaks at 17,389 thousand US dollars, then slightly declining in 2023 before rising again in 2024. This pattern suggests fluctuating capital expenditure in leased property enhancements.

Furniture and Fixtures

Furniture and fixtures have steadily increased from 6,383 thousand US dollars in 2020 to 13,472 thousand US dollars in 2024, reflecting incremental additions or replacements over time.

Construction in Progress

This item exhibits significant volatility with a sharp decrease from 49,575 thousand US dollars in 2020 to 1,908 thousand US dollars in 2022, followed by a recovery to 27,477 thousand US dollars in 2024. The fluctuations indicate periods of active construction halted by completion phases or changes in project scope.

Property and Equipment, Gross

The aggregate gross property and equipment values steadily rise from 424,677 thousand US dollars in 2020 to 747,156 thousand US dollars in 2024. This overall increase across the asset base reflects ongoing capital investments.

Accumulated Depreciation and Amortization

This liability increases in magnitude from -143,149 thousand US dollars in 2020 to -252,211 thousand US dollars in 2024, consistent with aging asset base and systematic amortization over time.

Property and Equipment, Net

The net property and equipment value rises from 281,528 thousand US dollars in 2020 to 494,945 thousand US dollars in 2024. Though there is a minor dip in 2022, the net asset value generally trends positively, suggesting that additions and asset revaluations outpace depreciation.

Average Age Ratio

The average age ratio exhibited a fluctuating pattern over the analyzed periods. It decreased from 36.78% in 2020 to 34.66% in 2021, then increased to 38.11% in 2022 and further to 41.72% in 2023, followed by a decline to 36.21% in 2024. This indicates variability in asset aging, with a peak in 2023 suggesting relatively older assets during that year.

Estimated Total Useful Life

The estimated total useful life of the assets showed a decline from 21 years in 2020 to 17 years in 2021, further decreasing to 14 years in both 2022 and 2023. However, it increased significantly to 20 years in 2024. This trend may reflect changes in asset acquisition or revaluation policies affecting the longevity assumptions.

Estimated Age (Time Elapsed Since Purchase)

The estimated age of the assets generally decreased from 8 years in 2020 to 5 years in 2022, suggesting the addition of newer assets or replacement of older ones. It then increased again to 6 years in 2023 and to 7 years in 2024, indicating a gradual aging of the asset base following previous additions.

Estimated Remaining Life

The estimated remaining life demonstrated a decreasing trend from 13 years in 2020 to 8 years in 2023, indicating that the assets were expected to remain in use for a shorter duration during this period. In 2024, the remaining life rose notably to 13 years, consistent with the increase in estimated total useful life, potentially reflecting new asset investments or reassessments.

The data reveals notable developments in the property, plant, and equipment (PP&E) composition over the five-year period analyzed. Gross property and equipment values exhibit a consistent upward trend, increasing from $424,677 thousand at the end of 2020 to $747,156 thousand by the end of 2024. This represents substantial capital investment or asset acquisitions during the period, suggesting a strategic expansion or upgrading of the company's fixed assets.

Accumulated depreciation and amortization also show a steady increase, rising from $143,149 thousand in 2020 to $252,211 thousand in 2024. This indicates ongoing usage and aging of assets, consistent with larger asset bases requiring proportionately higher depreciation expenses. The increase in accumulated depreciation reflects the aging effect on the assets, partially offsetting the gross asset growth in terms of net book value.

Land values have grown moderately over the period, moving from $35,432 thousand to $50,681 thousand. This growth, while positive, is relatively modest compared to the increase in total gross property and equipment, suggesting that most of the asset growth comes from other types of fixed assets beyond land, such as buildings or machinery.

The average age ratio, expressed as a percentage, reflects the ratio of accumulated depreciation to gross property and equipment. It shows some variability, starting at 36.78% in 2020, decreasing to 34.66% in 2021, then increasing to a peak of 41.72% in 2023 before declining again to 36.21% in 2024. This fluctuation suggests periods of both asset aging and renewal. The decrease in 2024 could indicate significant asset additions or upgrades lowering the overall average asset age, or accelerated depreciation policies in prior years leveling off.

In summary, the company's fixed asset base has expanded notably in size during the period, with accumulated depreciation growing in tandem but at a slower pace relative to gross assets in the later years. The average age ratio's fluctuation points to dynamic asset management with phases of both asset aging and renewal, highlighting a balance between maintaining and expanding the property and equipment portfolio.

Property and Equipment, Gross

There is a consistent upward trend in the gross value of property and equipment over the five-year period. The value increased from approximately $424.7 million in 2020 to $747.2 million in 2024. This represents a significant increase of about 76%, indicating substantial capital investment or acquisition of property and equipment during this timeframe.

Land

The value of land shows a steady increase each year, rising from $35.4 million in 2020 to $50.7 million in 2024. This growth of roughly 43% suggests ongoing investments in land assets, possibly for expansion or strategic purposes. The land value increase is less pronounced compared to the total property and equipment gross value, implying that other categories within property and equipment are also contributing to the overall growth.

Depreciation and Amortization Expense on Property and Equipment

The depreciation and amortization expense rose sharply from $18.9 million in 2020 to a peak of $40 million in 2023. However, in 2024 this expense decreased to $35.1 million. The initial increase is consistent with the rising gross value of property and equipment, reflecting higher depreciation charges on the growing asset base. The decline in 2024 could suggest changes in depreciation policies, asset disposals, or completion of amortization for certain assets.

Estimated Total Useful Life

The estimated total useful life of the property and equipment exhibits some variability. It decreased from 21 years in 2020 to 14 years by 2022 and 2023, followed by an increase to 20 years in 2024. This fluctuation may indicate reassessments of asset lifespans, changes in asset composition, or updates to accounting estimates. The shorter useful life during the middle years aligns with increased depreciation expense, while the extension in 2024 corresponds with the observed drop in depreciation.

Overall Insights

The data reflects a strategy of ongoing investment in property, plant, and equipment, with a steadily increasing asset base. The fluctuations in depreciation expenses and estimated useful lives suggest active management of asset valuation and amortization policies. The steady growth in land value highlights a focus on securing physical locations or facilities as part of long-term asset growth.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization increased consistently over the observed periods. Starting from 143,149 thousand US dollars at the end of 2020, it rose to 252,211 thousand US dollars by the end of 2024. This reflects ongoing depreciation charges and suggests that the company’s property, plant, and equipment assets are aging and gradually being written down.

Depreciation and Amortization Expense on Property and Equipment

The depreciation and amortization expense showed a rising trend from 18,900 thousand US dollars in 2020 to a peak of 40,000 thousand US dollars in 2023, followed by a decrease to 35,100 thousand US dollars in 2024. This pattern indicates an increased recognition of expense, which might be tied to recent capital expenditures or the adoption of a different depreciation method, before a reduction suggesting slower asset additions or possible changes in asset composition.

Time Elapsed Since Purchase

The average time elapsed since purchase of the assets fluctuated between 5 and 8 years within the given timeframe. It decreased from 8 years in 2020 to 5 years in 2022, then rose again to 7 years by 2024. This variation could indicate a renewal or replacement cycle of the company’s fixed assets, with a period of significant new acquisitions around 2021 and 2022, followed by holding and aging of the asset base thereafter.

Overall Insights

The combined data suggest that the company has been actively managing its property, plant, and equipment portfolio with notable asset additions that temporarily accelerated depreciation expense. The steady increase in accumulated depreciation aligns with the natural aging of the assets. The variations in average asset age imply cycles of investment and renewal, impacting the depreciation patterns observed.

Property and Equipment, Net

The net value of property and equipment demonstrates a generally positive trend over the observed period. Starting at 281,528 thousand USD at the end of 2020, it increased significantly to 362,962 thousand USD by the end of 2021. A slight decline occurred in 2022, with a value of 357,157 thousand USD. However, the value resumed growth in 2023, reaching 368,952 thousand USD, followed by a substantial increase in 2024 to 494,945 thousand USD, indicating considerable capital investment or asset additions in the last year.

Land

The value allocated to land shows a consistent upward trajectory throughout the five-year span. Beginning at 35,432 thousand USD in 2020, it increased steadily each year, culminating at 50,681 thousand USD by the end of 2024. This reflects ongoing acquisitions or revaluations of land assets.

Depreciation and Amortization Expense on Property and Equipment

Depreciation and amortization expenses rose sharply from 18,900 thousand USD in 2020 to a peak of 40,000 thousand USD in 2023. After this peak, the expense decreased noticeably to 35,100 thousand USD in 2024. This pattern suggests an accumulation of depreciable assets up through 2023, with a potential shift in asset composition or depreciation method influencing the subsequent reduction in 2024.

Estimated Remaining Life

The estimated remaining life of property and equipment shows some volatility over the period. It started at 13 years in 2020, declining steadily to 8 years by 2023, which may indicate aging assets or accelerated depreciation practices. Interestingly, in 2024, the estimated remaining life increased back to 13 years, potentially signaling the addition of newer assets or a revision of useful life assumptions.