Analysis of Long-term (Investment) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Long-term Activity Ratios (Summary)
Monolithic Power Systems Inc., long-term (investment) activity ratios
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Net fixed asset turnover | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset) | ||||||
| Total asset turnover | ||||||
| Equity turnover |
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 financial data reveals distinct trends in the efficiency measures related to asset utilization over the five-year period.
- Net Fixed Asset Turnover
- The net fixed asset turnover ratio exhibits an overall increasing trend from 3.00 in 2020 to a peak of 5.02 in 2022, followed by a gradual decline to 4.46 in 2024. This suggests an initial improvement in generating revenue from fixed assets, reaching maximum efficiency in 2022, then a modest reduction in asset utilization effectiveness over the subsequent two years.
- Net Fixed Asset Turnover Including Operating Lease, Right-of-Use Asset
- When incorporating operating leases and right-of-use assets, a similar pattern is observed. The ratio rises from 2.96 in 2020 to 4.96 in 2022, then declines to 4.31 by 2024. The inclusion of lease assets consistently results in slightly lower turnover ratios compared to the traditional net fixed asset turnover, reflecting the additional asset base from leases.
- Total Asset Turnover
- The total asset turnover shows a moderate rise from 0.70 in 2020 to 0.87 in 2022. However, this is followed by a notable decrease to 0.61 in 2024. This indicates that, while asset efficiency improved until 2022, there was a significant drop in sales generated per dollar of total assets in the later years, suggesting either sales contraction or asset growth outpacing revenue.
- Equity Turnover
- Equity turnover follows a slightly similar trajectory: an increase from 0.87 in 2020 to 1.08 in 2022, then declining to 0.70 in 2024. This trend points towards initially more effective use of equity to generate revenue, followed by decreasing efficiency, potentially due to increased equity levels or reduced sales volume.
Overall, the data indicates a period of rising operational efficiency and revenue generation from both fixed assets and equity through 2022, after which there is a decline in turnover ratios. This suggests a shift wherein asset and equity growth or market conditions may have led to reduced sales efficiency in the most recent years.
Net Fixed Asset Turnover
Monolithic Power Systems Inc., net fixed asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Net fixed asset turnover = Revenue ÷ Property and equipment, net
= ÷ =
2 Click competitor name to see calculations.
The company demonstrates a consistent upward trend in revenue over the five-year period from 2020 to 2024, increasing from approximately 844 million US dollars to over 2.2 billion US dollars. This reflects significant growth in the company's sales or service income streams, with some acceleration particularly noticeable between 2021 and 2022.
Regarding property and equipment, net values grew steadily from around 282 million US dollars in 2020 to nearly 495 million US dollars in 2024. This increase indicates ongoing investment in long-term assets, which could correspond to expansion, modernization, or capacity enhancement.
The net fixed asset turnover ratio, a measure of how effectively the company utilizes its fixed assets to generate revenue, fluctuated over the period. The ratio started at 3 in 2020, increased to 3.33 in 2021, peaked at 5.02 in 2022, and then gradually declined to 4.46 by 2024. Despite the decline after 2022, the turnover remains higher than the initial years, suggesting improved efficiency in asset use over the medium term.
- Revenue Trend
- Consistent year-over-year growth, more than doubling from 2020 to 2024.
- Property and Equipment
- Steady increase denotes reinvestment and possible operational scaling.
- Net Fixed Asset Turnover
- Shows improving efficiency until 2022, followed by a modest decrease but still above early period levels.
Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset)
Monolithic Power Systems Inc., net fixed asset turnover (including operating lease, right-of-use asset) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Property and equipment, net | ||||||
| Operating lease ROU assets (included in Other long-term assets) | ||||||
| Property and equipment, net (including operating lease, right-of-use asset) | ||||||
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | ||||||
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Net fixed asset turnover (including operating lease, right-of-use asset) = Revenue ÷ Property and equipment, net (including operating lease, right-of-use asset)
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue displays a consistent upward trend over the observed periods. Starting from approximately $844 million in 2020, it increased markedly to about $1.21 billion in 2021, with further substantial growth to approximately $1.79 billion in 2022. Revenue then showed a modest rise in 2023 reaching roughly $1.82 billion, followed by a significant increase to approximately $2.21 billion in 2024. This indicates strong top-line growth, with an overall increase of more than 2.5 times from 2020 to 2024.
- Property and Equipment, Net
- The net value of property and equipment, including operating lease and right-of-use assets, generally increased over the periods under review. The value rose from about $285 million in 2020 to approximately $369 million in 2021. A slight decrease was observed in 2022 to around $361 million, followed by a modest increase to about $377 million in 2023. In 2024, there was a considerable jump to roughly $512 million. Overall, the asset base related to property and equipment grew significantly, especially in the most recent period, reflecting possible expansion or capital investment.
- Net Fixed Asset Turnover Ratio
- The net fixed asset turnover ratio, which measures revenue generated per unit of fixed assets, demonstrates variable performance. Starting at 2.96 in 2020, it improved to 3.27 in 2021 and showed a marked increase to 4.96 in 2022. The ratio slightly declined to 4.83 in 2023 and further to 4.31 in 2024. Despite the recent decreases, the overall trend indicates enhanced efficiency in using fixed assets to generate revenue until 2022, with some normalization or reduced asset utilization effectiveness in the latest years.
- Overall Observations
- The company exhibits strong revenue growth alongside an increasing asset base. The initial rise in net fixed asset turnover ratio suggests improved efficiency in the use of property and equipment, supporting top-line expansion. However, as fixed assets notably increased in 2024, the turnover ratio declined somewhat, which may imply that asset growth has outpaced revenue growth in the most recent year. Such a pattern could be indicative of ongoing investments expected to support future revenue growth or a shift in asset structure impacting efficiency metrics.
Total Asset Turnover
Monolithic Power Systems Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Total assets | ||||||
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | ||||||
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Total Asset Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Total asset turnover = Revenue ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue shows a consistent upward trajectory over the five-year period. Starting at approximately 844 million US dollars in 2020, revenue increased to over 2.2 billion US dollars by the end of 2024. The most significant growth occurred between 2021 and 2022, where revenue surged by nearly 49%. Growth continued but at a somewhat moderated pace from 2022 to 2024.
- Total Assets Trends
- Total assets also expanded substantially, rising from about 1.21 billion US dollars in 2020 to nearly 3.62 billion US dollars by 2024. The asset base nearly tripled over the period, reflecting considerable investment or growth in asset holdings, with steep increases particularly notable after 2022.
- Total Asset Turnover Trends
- The total asset turnover ratio initially improved from 0.70 in 2020 to 0.87 in 2022, indicating enhanced efficiency in using assets to generate revenue during these years. However, from 2022 onwards, the ratio declined to 0.61 by the end of 2024. This decline suggests that while the company’s asset base grew substantially, revenue growth did not keep pace proportionally, leading to reduced efficiency in asset utilization in the later years.
- Overall Financial Observations
- Over the five-year period, the company experienced significant growth in both revenue and total assets. However, the declining asset turnover ratio in the final years may indicate that the company is investing in assets at a rate that currently outstrips its ability to convert those assets into revenue. This could suggest either an investment phase expecting future returns or potential inefficiencies that may need to be addressed.
Equity Turnover
Monolithic Power Systems Inc., equity turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | ||||||
| Stockholders’ equity | ||||||
| Long-term Activity Ratio | ||||||
| Equity turnover1 | ||||||
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Equity Turnover, Industry | ||||||
| Information Technology | ||||||
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).
1 2024 Calculation
Equity turnover = Revenue ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data over the five-year period displays notable trends in revenue, stockholders’ equity, and equity turnover ratios.
- Revenue
- Revenue exhibits a strong upward trajectory, increasing consistently each year from approximately $844 million in 2020 to about $2.21 billion in 2024. The largest year-over-year growth occurred between 2021 and 2022, with revenue rising by nearly 49%. Although growth slowed slightly from 2022 to 2023, it picked up again in 2024, indicating sustained business expansion.
- Stockholders’ Equity
- Stockholders’ equity shows robust growth throughout the period, expanding from approximately $967 million in 2020 to over $3.14 billion in 2024. This significant increase—more than tripling over five years—suggests a strong capital base and retained earnings accumulation. The equity growth pace accelerates particularly in the latter years, with a sharp jump between 2023 and 2024.
- Equity Turnover Ratio
- The equity turnover ratio, which measures revenue generated per dollar of equity, exhibits a general decline over the observed period. Starting at 0.87 in 2020, it increases modestly to 1.08 in 2022 but then decreases significantly to 0.70 by 2024. This trend indicates diminishing efficiency in using equity to generate revenue, potentially due to the equity base growing faster than revenue or other operational changes affecting asset utilization.
Overall, the data reflects a company experiencing strong revenue and equity growth; however, the declining equity turnover ratio suggests a need to evaluate capital efficiency to maintain effective use of shareholder funds as the business scales.