Stock Analysis on Net
Stock Analysis on Net

Monolithic Power Systems Inc. (NASDAQ:MPWR)

This company has been moved to the archive! The financial data has not been updated since May 5, 2025.

Common-Size Balance Sheet: Assets

Monolithic Power Systems Inc., common-size consolidated balance sheet: assets

Microsoft Excel
Dec 31, 2024 Dec 31, 2023 Dec 31, 2022 Dec 31, 2021 Dec 31, 2020
Cash and cash equivalents 19.13 21.68 14.02 11.93 27.72
Short-term investments 4.73 23.85 21.82 33.79 21.53
Accounts receivable, net 4.77 7.39 8.87 6.61 5.53
Inventories 11.60 15.76 21.72 16.36 13.00
Other receivables 1.66 2.05 0.00 0.00 0.00
Prepaid expense 1.00 1.19 0.54 0.60 0.42
RSU tax withholding proceeds receivable 0.00 0.83 0.70 1.02 1.03
Restricted cash 0.00 1.36 0.00 0.00 0.00
Other 0.38 0.62 0.84 0.62 0.45
Other current assets 3.04% 6.06% 2.08% 2.24% 1.90%
Current assets 43.27% 74.74% 68.51% 70.93% 69.67%
Property and equipment, net 13.68 15.16 17.35 22.89 23.30
Acquisition-related intangible assets, net 0.27 0.00 0.00 0.00 0.00
Goodwill 0.72 0.27 0.32 0.41 0.54
Deferred tax assets, net 36.68 1.15 1.71 1.38 1.54
Deferred compensation plan assets 2.56 3.22 3.06 3.35 3.82
Prepaid wafer purchases 1.66 4.93 8.26 0.00 0.00
Operating lease ROU and related assets 0.95 0.34 0.21 0.40 0.31
Other 0.21 0.19 0.58 0.63 0.83
Other long-term assets 5.37% 8.68% 12.11% 4.38% 4.95%
Long-term assets 56.73% 25.26% 31.49% 29.07% 30.33%
Total assets 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The asset composition of the balance sheet underwent a significant structural shift between 2020 and 2024, transitioning from a predominantly current-asset-heavy profile to one characterized by a substantial increase in long-term assets.

Current Asset Trends and Liquidity
Current assets maintained a dominant position from 2020 through 2023, fluctuating between 68.51% and 74.74% of total assets. However, a sharp contraction occurred in 2024, with current assets falling to 43.27%. This decline is primarily driven by a substantial reduction in short-term investments, which peaked at 33.79% in 2021 before dropping to 4.73% by 2024. Cash and cash equivalents exhibited volatility, starting at 27.72% in 2020, dipping in 2021, and stabilizing near 19.13% by 2024.
Working Capital Management
Inventories showed a marked increase from 13.00% in 2020 to a peak of 21.72% in 2022, suggesting a period of aggressive stock accumulation or supply chain buffering. This trend reversed after 2022, with inventories declining to 11.60% by 2024. Accounts receivable remained relatively stable throughout the period, generally ranging between 4.77% and 8.87%, indicating consistent credit management relative to total asset growth.
Long-term Asset Recomposition
Long-term assets represented approximately 25% to 31% of the total balance sheet from 2020 to 2023, but surged to 56.73% in 2024. This expansion is almost entirely attributable to a massive increase in deferred tax assets, net, which rose from 1.15% in 2023 to 36.68% in 2024. Conversely, the relative weight of property and equipment, net, experienced a steady downward trend, declining from 23.30% in 2020 to 13.68% in 2024, indicating that fixed asset growth has not kept pace with the growth of other asset categories.
Other Asset Observations
Prepaid wafer purchases emerged as a notable line item in 2022 at 8.26% and subsequently declined to 1.66% by 2024. Goodwill and acquisition-related intangible assets remained negligible for most of the period, although a slight increase in both was observed in 2024, suggesting minor acquisition activity. Deferred compensation plan assets remained stable, oscillating between 2.56% and 3.82%.

In summary, the financial profile shifted from a highly liquid position focused on cash, short-term investments, and inventory toward a balance sheet dominated by non-current tax-related assets. This reallocation suggests a fundamental change in the company's asset base and accounting position by the end of the 2024 fiscal year.

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