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.
Long-term Activity Ratios (Summary)
Monolithic Power Systems Inc., long-term (investment) activity ratios
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 analysis of investment activity ratios between 2020 and 2024 reveals a common trend across all metrics, characterized by a period of increasing efficiency that peaked in 2022, followed by a progressive decline through 2024.
- Net Fixed Asset Turnover
- A strong upward trajectory was observed from 2020 to 2022, with the ratio increasing from 3.00 to a peak of 5.02. The inclusion of operating lease right-of-use assets shows a nearly identical pattern, peaking at 4.96 in 2022. Following this peak, a moderate decline occurred, ending at 4.46 and 4.31 respectively by the end of 2024. Despite the recent downturn, efficiency in utilizing fixed assets remains higher than the 2020 and 2021 levels.
- Total Asset Turnover
- The efficiency of total asset utilization improved steadily from 0.70 in 2020 to a maximum of 0.87 in 2022. However, a significant downward trend followed, with the ratio falling to 0.75 in 2023 and reaching a five-year low of 0.61 by December 31, 2024. This suggests that total asset growth has outpaced revenue growth in the latter part of the period.
- Equity Turnover
- Equity turnover mirrored the movement of total asset turnover, rising from 0.87 in 2020 to a peak of 1.08 in 2022. A sharp reversal followed, with the ratio dropping to 0.89 in 2023 and further declining to 0.70 in 2024. This indicates a reduction in the company's ability to generate sales relative to its equity base over the final two years of the analyzed period.
Overall, the data indicates a synchronized peak in asset and equity productivity in 2022. The subsequent decline across all measured ratios suggests a period of diminished operational efficiency or an expansion of the investment base that has not yet been matched by proportional increases in revenue.
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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 | 2,207,100) | 1,821,072) | 1,794,148) | 1,207,798) | 844,452) | |
| Property and equipment, net | 494,945) | 368,952) | 357,157) | 362,962) | 281,528) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover1 | 4.46 | 4.94 | 5.02 | 3.33 | 3.00 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 14.31 | 14.27 | 15.60 | 23.41 | — | |
| Analog Devices Inc. | 2.76 | 3.82 | 5.00 | 3.70 | 5.00 | |
| Applied Materials Inc. | 8.14 | 9.37 | 11.18 | 11.93 | 10.72 | |
| Broadcom Inc. | 20.46 | 16.63 | 14.94 | 11.69 | 9.52 | |
| Intel Corp. | 0.49 | 0.56 | 0.78 | 1.25 | — | |
| KLA Corp. | 8.84 | 10.17 | 10.84 | 10.44 | — | |
| Lam Research Corp. | 6.92 | 9.39 | 10.46 | 11.22 | — | |
| Marvell Technology Inc. | 7.29 | 10.25 | 9.64 | 9.10 | — | |
| Micron Technology Inc. | 0.63 | 0.41 | 0.80 | 0.83 | 0.69 | |
| NVIDIA Corp. | 15.57 | 7.09 | 9.69 | 7.76 | — | |
| Qualcomm Inc. | 8.35 | 7.10 | 8.55 | 7.36 | 6.34 | |
| Texas Instruments Inc. | 1.38 | 1.75 | 2.91 | 3.57 | — | |
| Net Fixed Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.85 | 1.69 | 2.13 | 2.33 | — | |
| Net Fixed Asset Turnover, Industry | ||||||
| Information Technology | 3.48 | 3.80 | 4.46 | 4.76 | — | |
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
= 2,207,100 ÷ 494,945 = 4.46
2 Click competitor name to see calculations.
The analysis of long-term investment activity reveals a period of significant revenue expansion accompanied by a strategic shift in fixed asset utilization. Revenue grew consistently from 844.5 million USD in 2020 to 2.21 billion USD in 2024, reflecting a strong upward trajectory in top-line performance.
- Revenue and Asset Scaling
- A substantial increase in revenue was observed between 2021 and 2022, which coincided with a period of relatively stable net property and equipment. This divergence resulted in a sharp increase in asset efficiency, as the organization generated significantly more revenue per unit of fixed asset investment.
- Net Fixed Asset Turnover Trends
- The net fixed asset turnover ratio improved from 3.00 in 2020 to a peak of 5.02 in 2022. This peak indicates maximum efficiency in utilizing fixed assets to drive sales. Following this period, the ratio entered a gradual decline, reaching 4.46 by the end of 2024.
- Capital Investment Impact
- The decline in the turnover ratio observed in 2024 is primarily driven by a significant increase in net property and equipment, which rose from 368.9 million USD in 2023 to 494.9 million USD in 2024. While revenue continued to grow, the pace of capital investment in fixed assets exceeded the pace of revenue growth during this final period, leading to a reduction in the turnover ratio.
In summary, the data indicates a transition from a phase of optimizing existing asset capacity to a phase of aggressive capital expansion. The recent decrease in the net fixed asset turnover ratio suggests a strategic investment in infrastructure and equipment intended to support future growth, which has not yet been fully realized in the current revenue figures.
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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 | 2,207,100) | 1,821,072) | 1,794,148) | 1,207,798) | 844,452) | |
| Property and equipment, net | 494,945) | 368,952) | 357,157) | 362,962) | 281,528) | |
| Operating lease ROU assets (included in Other long-term assets) | 16,915) | 8,355) | 4,288) | 6,297) | 3,719) | |
| Property and equipment, net (including operating lease, right-of-use asset) | 511,860) | 377,307) | 361,445) | 369,259) | 285,247) | |
| Long-term Activity Ratio | ||||||
| Net fixed asset turnover (including operating lease, right-of-use asset)1 | 4.31 | 4.83 | 4.96 | 3.27 | 2.96 | |
| Benchmarks | ||||||
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Competitors2 | ||||||
| Advanced Micro Devices Inc. | 10.63 | 10.21 | 11.96 | 15.37 | — | |
| Analog Devices Inc. | 2.58 | 3.52 | 4.51 | 3.24 | 4.07 | |
| Applied Materials Inc. | 7.32 | 8.28 | 9.56 | 10.35 | 9.27 | |
| Broadcom Inc. | 13.41 | 13.69 | 12.12 | 9.35 | 7.71 | |
| Intel Corp. | 0.49 | 0.56 | 0.78 | 1.24 | — | |
| KLA Corp. | 7.31 | 8.46 | 9.43 | 9.03 | — | |
| Lam Research Corp. | 6.05 | 8.30 | 9.19 | 9.90 | — | |
| Marvell Technology Inc. | 5.74 | 7.51 | 7.38 | 6.94 | — | |
| Micron Technology Inc. | 0.62 | 0.40 | 0.78 | 0.82 | 0.68 | |
| NVIDIA Corp. | 11.58 | 5.57 | 7.46 | 5.84 | — | |
| Qualcomm Inc. | 7.24 | 6.34 | 7.62 | 6.62 | 5.64 | |
| Texas Instruments Inc. | 1.29 | 1.66 | 2.74 | 3.27 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.78 | 1.63 | 2.06 | 2.24 | — | |
| Net Fixed Asset Turnover (including Operating Lease, Right-of-Use Asset), Industry | ||||||
| Information Technology | 3.06 | 3.33 | 3.86 | 4.04 | — | |
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)
= 2,207,100 ÷ 511,860 = 4.31
2 Click competitor name to see calculations.
The financial trajectory from 2020 to 2024 is characterized by substantial revenue expansion and strategic increases in the net fixed asset base. Total revenue grew from $844.5 million in 2020 to $2.21 billion in 2024, while net property and equipment, including right-of-use assets, increased from $285.2 million to $511.9 million over the same period.
- Revenue Expansion and Asset Efficiency
- A strong positive trend in asset utilization is observed between 2020 and 2022. During this interval, the net fixed asset turnover ratio rose from 2.96 to a peak of 4.96. This indicates that revenue grew at a significantly faster pace than the company's investment in fixed assets, reflecting high operational efficiency and optimal utilization of existing capacity.
- Recent Asset Investment and Turnover Moderation
- Following the peak in 2022, the net fixed asset turnover ratio began a gradual decline, reaching 4.31 by the end of 2024. This downward trend is primarily driven by a substantial increase in the fixed asset base in 2024, where net property and equipment grew by approximately 35.6% compared to the previous year. While revenue continued to rise to $2.21 billion, the magnitude of the capital investment outpaced the immediate revenue gains in the final year.
- Capital Investment Cycle
- The data suggests a cyclical relationship between capacity utilization and capital expenditure. The period of maximum efficiency observed in 2022 likely necessitated the subsequent increase in property and equipment to sustain long-term growth. The current decline in the turnover ratio is indicative of a transition phase where new investments have been integrated into the balance sheet but have not yet reached full revenue-generating potential.
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Total Asset Turnover
Monolithic Power Systems Inc., total asset turnover calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Revenue | 2,207,100) | 1,821,072) | 1,794,148) | 1,207,798) | 844,452) | |
| Total assets | 3,617,097) | 2,434,353) | 2,058,885) | 1,585,825) | 1,208,491) | |
| Long-term Activity Ratio | ||||||
| Total asset turnover1 | 0.61 | 0.75 | 0.87 | 0.76 | 0.70 | |
| Benchmarks | ||||||
| Total Asset Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.37 | 0.33 | 0.35 | 1.32 | — | |
| Analog Devices Inc. | 0.20 | 0.25 | 0.24 | 0.14 | 0.26 | |
| Applied Materials Inc. | 0.79 | 0.86 | 0.96 | 0.89 | 0.77 | |
| Broadcom Inc. | 0.31 | 0.49 | 0.45 | 0.36 | 0.31 | |
| Intel Corp. | 0.27 | 0.28 | 0.35 | 0.47 | — | |
| KLA Corp. | 0.64 | 0.75 | 0.73 | 0.67 | — | |
| Lam Research Corp. | 0.80 | 0.93 | 1.00 | 0.92 | — | |
| Marvell Technology Inc. | 0.26 | 0.26 | 0.20 | 0.28 | — | |
| Micron Technology Inc. | 0.36 | 0.24 | 0.46 | 0.47 | 0.40 | |
| NVIDIA Corp. | 0.93 | 0.65 | 0.61 | 0.58 | — | |
| Qualcomm Inc. | 0.71 | 0.70 | 0.90 | 0.81 | 0.66 | |
| Texas Instruments Inc. | 0.44 | 0.54 | 0.74 | 0.74 | — | |
| Total Asset Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.42 | 0.43 | 0.49 | 0.52 | — | |
| Total Asset Turnover, Industry | ||||||
| Information Technology | 0.58 | 0.61 | 0.64 | 0.62 | — | |
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
= 2,207,100 ÷ 3,617,097 = 0.61
2 Click competitor name to see calculations.
Between 2020 and 2024, a fluctuating trend in asset utilization efficiency is observed, characterized by an initial improvement followed by a significant decline. While revenue has grown consistently throughout the period, the acceleration of asset accumulation in recent years has outpaced revenue generation, leading to a compression of the total asset turnover ratio.
- Revenue Growth Trends
- Revenue demonstrated a steady upward trajectory, increasing from 844,452 thousand US dollars in 2020 to 2,207,100 thousand US dollars by 2024. The most substantial growth occurred between 2021 and 2022, followed by a period of relative stability in 2023 and a subsequent increase in 2024.
- Asset Expansion Patterns
- Total assets grew consistently from 1,208,491 thousand US dollars in 2020 to 3,617,097 thousand US dollars in 2024. A notable surge in asset acquisition is evident between 2023 and 2024, where assets increased by approximately 48%, representing the largest single-year expansion in the observed period.
- Total Asset Turnover Dynamics
- The asset turnover ratio initially improved from 0.70 in 2020 to a peak of 0.87 in 2022, indicating an increase in the company's ability to generate sales from its asset base. However, this trend reversed after 2022, with the ratio declining to 0.75 in 2023 and further dropping to 0.61 in 2024. This decline suggests that the recent aggressive expansion of the asset base has not yet resulted in a proportional increase in revenue, leading to lower operational efficiency regarding asset utilization.
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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 | 2,207,100) | 1,821,072) | 1,794,148) | 1,207,798) | 844,452) | |
| Stockholders’ equity | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Long-term Activity Ratio | ||||||
| Equity turnover1 | 0.70 | 0.89 | 1.08 | 0.97 | 0.87 | |
| Benchmarks | ||||||
| Equity Turnover, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.45 | 0.41 | 0.43 | 2.19 | — | |
| Analog Devices Inc. | 0.27 | 0.35 | 0.33 | 0.19 | 0.47 | |
| Applied Materials Inc. | 1.43 | 1.62 | 2.11 | 1.88 | 1.63 | |
| Broadcom Inc. | 0.76 | 1.49 | 1.46 | 1.10 | 1.00 | |
| Intel Corp. | 0.53 | 0.51 | 0.62 | 0.83 | — | |
| KLA Corp. | 2.91 | 3.59 | 6.57 | 2.05 | — | |
| Lam Research Corp. | 1.75 | 2.12 | 2.74 | 2.43 | — | |
| Marvell Technology Inc. | 0.37 | 0.38 | 0.28 | 0.35 | — | |
| Micron Technology Inc. | 0.56 | 0.35 | 0.62 | 0.63 | 0.55 | |
| NVIDIA Corp. | 1.42 | 1.22 | 1.01 | 0.99 | — | |
| Qualcomm Inc. | 1.48 | 1.66 | 2.45 | 3.37 | 3.87 | |
| Texas Instruments Inc. | 0.93 | 1.04 | 1.37 | 1.38 | — | |
| Equity Turnover, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.77 | 0.76 | 0.86 | 0.98 | — | |
| Equity Turnover, Industry | ||||||
| Information Technology | 1.41 | 1.54 | 1.71 | 1.77 | — | |
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
= 2,207,100 ÷ 3,145,767 = 0.70
2 Click competitor name to see calculations.
Revenue exhibited a consistent upward trajectory from December 31, 2020, to December 31, 2024, increasing from 844.45 million to 2.21 billion. During the same period, stockholders' equity expanded from 966.59 million to 3.15 billion. While both metrics grew, the rate of expansion for stockholders' equity accelerated significantly toward the end of the period, particularly between 2023 and 2024.
- Equity Turnover Trend
- The equity turnover ratio experienced a period of growth followed by a steady decline. Between 2020 and 2022, the ratio rose from 0.87 to a peak of 1.08, demonstrating that revenue growth was outpacing the growth of the equity base, thereby increasing capital efficiency.
- Efficiency Contraction
- A reversal in the trend occurred after 2022, with the ratio falling to 0.89 in 2023 and reaching a period low of 0.70 by December 31, 2024. This contraction indicates that the growth in stockholders' equity began to exceed the growth in revenue, leading to a reduction in the amount of revenue generated per unit of equity.
- Capital Utilization Insight
- The data reveals a shift in the relationship between the company's capital base and its top-line performance. The sharp decline in turnover in 2024 is primarily driven by a substantial increase in equity that was not matched by a proportional increase in revenue, suggesting a period of lower equity productivity.
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