Analysis of Short-term (Operating) Activity Ratios
Quarterly Data
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Monolithic Power Systems Inc., short-term (operating) activity ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
The financial ratios indicate notable fluctuations across the periods, reflecting variations in operational efficiency and working capital management.
- Inventory Turnover
- The inventory turnover ratio shows a declining trend from a high of 2.61 in the second quarter of 2021 to a low of 1.67 in the fourth quarter of 2022. This decline suggests slower inventory movement during this period. However, starting in 2023, the ratio gradually improves, reaching around 2.34 by the first quarter of 2025, indicating better inventory management or increased sales velocity.
- Receivables Turnover
- Receivables turnover experienced some volatility, peaking at 13.83 in Q3 of 2021, then declining to near 9.4 in Q1 of 2024. A recovery is observed in the following quarters, with the ratio climbing above 12 in late 2024 before dipping again slightly. These fluctuations imply varying efficiency in collecting receivables, potentially influenced by credit policies or customer payment behavior.
- Payables Turnover
- The payables turnover ratio generally increased from approximately 7.3 in early 2021, peaking at over 12.7 in Q4 2023, indicating faster payment to suppliers. However, it decreased somewhat afterward, stabilizing around 8.4 by Q1 2025, which may reflect changed payment terms or cash flow considerations.
- Working Capital Turnover
- The working capital turnover ratio rose to a high of 1.62 in Q3 2022 but then showed a downward trend until early 2024, reaching around 1.1. Thereafter, it improved significantly, reaching about 1.7 by Q4 2024 and maintaining a similar level into Q1 2025, which suggests improving efficiency in using working capital to generate sales after a period of relative underperformance.
- Average Inventory Processing Period
- This metric lengthened steadily from 140 days in Q2 2021 to a peak of 219 days in Q4 2022, demonstrating slower inventory turnover. A reversal occurs from 2023 onwards with the period declining to approximately 156 days by Q1 2025, aligning with the improved inventory turnover ratio and indicating faster inventory processing.
- Average Receivable Collection Period
- The days to collect receivables remained relatively stable with minor fluctuations, averaging around 30 to 39 days. Peaks correspond to weaker receivables turnover periods, but overall, the collection period did not exhibit drastic changes, suggesting consistent credit policies.
- Operating Cycle
- The operating cycle reflects the sum of inventory processing and receivables collection periods, increasing from 167 days in mid-2021 to a high of 256 days in Q4 2022, indicating lengthening of time to convert inventory into cash. A subsequent decline occurs with the cycle dropping to about 189 days by Q1 2025, signaling improvement in operational cash flow management.
- Average Payables Payment Period
- This period decreased markedly from 54 days in Q3 2021 to a low near 27 days at the end of 2022, indicating faster outflows to suppliers during that time. It then increased again to a range of 38-46 days in 2024 and early 2025, which may represent strategic extension of payables to optimize cash flows.
- Cash Conversion Cycle
- The cash conversion cycle, a key measure of liquidity efficiency, showed a rising trend from 121 days in Q2 2021 to a peak of 226 days in Q4 2022, reflecting longer net operating cash conversion. This was followed by a steady improvement, decreasing to 145 days by Q1 2025. This improvement signals enhanced management of working capital and faster cash realization from operations.
Overall, the data reveal initial deterioration in turnover efficiencies and lengthening of cash-related cycles through 2022, followed by gradual and sustained improvements through 2024 and early 2025. These changes denote a shift toward more effective inventory management, receivables collection, and payables handling, contributing to better liquidity and operational performance in the latest periods.
Turnover Ratios
Average No. Days
Inventory Turnover
Monolithic Power Systems Inc., inventory turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cost of revenue | 284,324) | 277,257) | 276,676) | 226,853) | 205,444) | 202,889) | 211,326) | 193,453) | 192,285) | 192,203) | 204,516) | 190,043) | 158,834) | 142,630) | 137,211) | 129,102) | 113,396) | ||||||
| Inventories | 454,793) | 419,611) | 424,942) | 426,751) | 395,990) | 383,702) | 397,288) | 427,432) | 430,830) | 447,290) | 397,435) | 359,647) | 311,040) | 259,417) | 208,062) | 177,322) | 175,223) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Inventory turnover1 | 2.34 | 2.35 | 2.15 | 1.98 | 2.05 | 2.08 | 1.99 | 1.83 | 1.81 | 1.67 | 1.75 | 1.75 | 1.83 | 2.01 | 2.33 | 2.61 | 2.38 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Inventory Turnover, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 2.16 | 2.28 | 2.33 | 2.44 | 2.61 | 2.81 | 2.74 | 2.70 | 3.05 | 3.45 | 3.62 | 4.24 | 4.00 | 4.35 | 4.15 | 4.10 | 3.81 | ||||||
| Analog Devices Inc. | 2.71 | 2.79 | 2.86 | 2.84 | 2.80 | 2.70 | 2.61 | 2.68 | 2.84 | 3.20 | 3.82 | 3.78 | 3.66 | 2.33 | 3.16 | 3.16 | 3.18 | ||||||
| Applied Materials Inc. | 2.63 | 2.63 | 2.54 | 2.46 | 2.49 | 2.47 | 2.45 | 2.41 | 2.32 | 2.33 | 2.42 | 2.60 | 2.79 | 2.82 | 2.80 | 2.65 | 2.55 | ||||||
| Broadcom Inc. | 10.09 | 10.83 | 8.92 | 8.09 | 6.67 | 5.86 | 6.10 | 6.00 | 5.98 | 5.77 | 5.92 | 6.40 | 6.95 | 8.18 | 9.10 | 10.44 | 11.01 | ||||||
| Intel Corp. | 2.95 | 2.93 | 2.94 | 2.87 | 2.81 | 2.92 | 2.85 | 2.78 | 2.68 | 2.74 | 2.90 | 3.02 | 2.97 | 3.27 | 3.50 | 3.91 | 4.15 | ||||||
| KLA Corp. | 1.33 | 1.29 | 1.29 | 1.28 | 1.37 | 1.47 | 1.54 | 1.63 | 1.59 | 1.67 | 1.71 | 1.75 | 1.73 | 1.76 | 1.81 | 1.76 | 1.77 | ||||||
| Lam Research Corp. | 1.95 | 1.86 | 1.75 | 1.77 | 1.84 | 2.00 | 2.14 | 2.16 | 2.24 | 2.36 | 2.60 | 2.89 | 2.95 | 2.91 | 2.78 | 2.71 | 2.77 | ||||||
| Micron Technology Inc. | 2.31 | 2.20 | 2.22 | 2.18 | 2.24 | 2.02 | 2.01 | 2.06 | 1.91 | 2.53 | 3.06 | 3.14 | 3.60 | 3.85 | 3.73 | 3.43 | 2.74 | ||||||
| NVIDIA Corp. | 3.36 | 3.15 | 2.83 | 2.68 | 2.45 | 2.25 | 2.70 | 3.02 | 3.25 | 3.62 | 3.87 | 3.75 | 3.63 | 3.44 | 3.69 | 3.47 | 3.81 | ||||||
| Qualcomm Inc. | 2.84 | 2.66 | 2.74 | 2.64 | 2.58 | 2.47 | 2.54 | 2.61 | 2.65 | 2.94 | 3.27 | 3.58 | 3.90 | 4.42 | 4.18 | 4.41 | 4.17 | ||||||
| Texas Instruments Inc. | 1.44 | 1.45 | 1.51 | 1.59 | 1.60 | 1.63 | 1.65 | 1.70 | 1.92 | 2.27 | 2.56 | 2.74 | 2.88 | 3.12 | 3.18 | 3.12 | 2.88 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Inventory turnover
= (Cost of revenueQ1 2025
+ Cost of revenueQ4 2024
+ Cost of revenueQ3 2024
+ Cost of revenueQ2 2024)
÷ Inventories
= (284,324 + 277,257 + 276,676 + 226,853)
÷ 454,793 = 2.34
2 Click competitor name to see calculations.
The financial data reveals distinctive trends in cost of revenue, inventories, and inventory turnover ratios over the observed periods.
- Cost of Revenue
- The cost of revenue exhibits an overall upward trend throughout the series. Starting from approximately $113 million in the first quarter of 2021, it rises steadily with some fluctuations, reaching above $284 million by the first quarter of 2025. Notably, there are significant increases in mid-2022 and then again from mid-2023 through 2024, indicating possible growth in production or sales volume, or increased input costs during these periods.
- Inventories
- Inventory levels show a consistent ascending pattern across the quarters. From about $175 million in early 2021, inventories grow considerably, peaking near $454 million in the first quarter of 2025. This gradual accumulation suggests either stockpiling to meet expected demand, expansion of product lines, or slower inventory turnover relative to sales. Although small dips occur intermittently, the overall inventory balance more than doubles over the timeframe.
- Inventory Turnover Ratio
- The inventory turnover ratio generally declines from 2.38 in the first quarter of 2021 to a low near 1.67 by the end of 2022, indicating that inventory is being replaced less frequently during this period. However, from 2023 onward, the turnover ratio recovers and gradually increases again to approximately 2.34 in early 2025. This pattern suggests that while inventory accumulation outpaced sales initially, operational improvements or stronger sales activity subsequently enhanced inventory efficiency.
In summary, the data illustrates sustained growth in both cost of revenue and inventory holdings, with a phased reduction and recovery in the inventory turnover ratio. These dynamics may reflect scaling business operations accompanied by efforts to optimize inventory management over time.
Receivables Turnover
Monolithic Power Systems Inc., receivables turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Revenue | 637,554) | 621,665) | 620,119) | 507,431) | 457,885) | 454,012) | 474,867) | 441,128) | 451,065) | 460,012) | 495,418) | 461,004) | 377,714) | 336,504) | 323,522) | 293,317) | 254,455) | ||||||
| Accounts receivable, net | 214,866) | 172,518) | 164,704) | 157,890) | 194,428) | 179,858) | 185,820) | 169,180) | 184,274) | 182,714) | 153,404) | 125,508) | 120,318) | 104,813) | 79,859) | 77,553) | 84,059) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Receivables turnover1 | 11.11 | 12.79 | 12.38 | 12.00 | 9.40 | 10.13 | 9.83 | 10.92 | 10.13 | 9.82 | 10.89 | 11.94 | 11.06 | 11.52 | 13.83 | 13.41 | 11.10 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Receivables Turnover, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 5.10 | 4.16 | 3.36 | 4.05 | 4.53 | 4.22 | 4.37 | 5.07 | 5.71 | 5.72 | 5.26 | 5.33 | 5.13 | 6.07 | 6.68 | 6.60 | 5.24 | ||||||
| Analog Devices Inc. | 7.83 | 7.05 | 8.61 | 10.42 | 9.67 | 8.37 | 7.94 | 7.96 | 7.72 | 6.67 | 6.37 | 6.07 | 5.16 | 5.02 | 7.90 | 7.62 | 7.08 | ||||||
| Applied Materials Inc. | 4.61 | 5.19 | 5.40 | 5.55 | 5.64 | 5.13 | 5.08 | 4.83 | 4.88 | 4.25 | 5.08 | 5.09 | 5.49 | 4.66 | 5.66 | 5.87 | 5.98 | ||||||
| Broadcom Inc. | 11.00 | 11.68 | 10.04 | 7.75 | 7.82 | 11.36 | 12.17 | 11.56 | 10.64 | 11.22 | 11.70 | 9.73 | 11.23 | 13.25 | 11.87 | 10.54 | 9.78 | ||||||
| Intel Corp. | 17.31 | 15.27 | 17.38 | 17.60 | 16.62 | 15.94 | 18.59 | 18.04 | 14.66 | 15.26 | 9.31 | 12.11 | 10.98 | 8.36 | 9.34 | 10.40 | 10.78 | ||||||
| KLA Corp. | 5.25 | 5.35 | 5.91 | 5.25 | 6.24 | 5.99 | 5.48 | 4.59 | 5.30 | 5.08 | 5.34 | 4.72 | 5.10 | 5.30 | 5.37 | 4.98 | 5.77 | ||||||
| Lam Research Corp. | 5.31 | 5.92 | 6.46 | 5.29 | 5.63 | 6.17 | 5.78 | 4.68 | 3.94 | 3.99 | 4.52 | 4.86 | 4.64 | 4.83 | 4.72 | 4.11 | 4.77 | ||||||
| Micron Technology Inc. | 3.92 | 3.80 | 4.17 | 4.26 | 5.50 | 6.36 | 7.48 | 10.12 | 8.18 | 6.00 | 5.20 | 5.79 | 5.64 | 5.22 | 6.02 | 7.01 | 5.98 | ||||||
| NVIDIA Corp. | 6.45 | 6.09 | 5.40 | 4.63 | 6.34 | 7.05 | 5.82 | 5.59 | 5.43 | 5.79 | 6.14 | 6.11 | 6.37 | 6.86 | 5.80 | 6.27 | 6.18 | ||||||
| Texas Instruments Inc. | 8.63 | 9.10 | 8.44 | 9.41 | 10.05 | 9.80 | 9.17 | 9.62 | 10.39 | 10.57 | 9.90 | 8.95 | 10.56 | 10.78 | 10.64 | 10.54 | 9.74 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Receivables turnover
= (RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024
+ RevenueQ2 2024)
÷ Accounts receivable, net
= (637,554 + 621,665 + 620,119 + 507,431)
÷ 214,866 = 11.11
2 Click competitor name to see calculations.
- Revenue Trends
- The revenue exhibits an overall upward trajectory from the beginning of the period to the most recent quarter. Starting at approximately $254 million, revenue increased steadily through 2021 and 2022, reaching a peak above $495 million in the third quarter of 2022. However, there was a decline in the fourth quarter of 2022 and early 2023, with revenue dropping to approximately $441 million by the second quarter of 2023. Following this dip, revenue resumed growth, surging significantly from the first quarter of 2024 onward and reaching its highest level in the last two reported quarters, around $620 million.
- Accounts Receivable, Net
- Accounts receivable, net, shows a consistent increase over the observed period, expanding from around $84 million initially to approximately $215 million by the first quarter of 2025. This growth reflects higher sales volumes and possibly extended credit terms. Notably, the increase in accounts receivable did not proceed in a perfectly linear fashion; fluctuations occurred, including an abrupt rise in late 2021 and early 2022, followed by oscillations in 2023 and 2024, before escalating again near the end of the dataset.
- Receivables Turnover Ratio
- The receivables turnover ratio shows variability over the monitored quarters. Initially, turnover increased, peaking around the third quarter of 2021, suggesting more efficient collection processes or shorter payment terms during that time. There is a general decline in turnover ratios through late 2021 and early 2023, indicating a potential slowdown in collections or more lenient credit policies. However, starting in 2024, the ratio strengthens markedly, surpassing earlier peak levels, and signals improved efficiency in managing receivables.
- Insights and Patterns
- The interplay between revenue growth and accounts receivable increments suggests that although sales have grown substantially over the period, the company has also allowed for extended credit or faced challenges in collection consistency during specific quarters. The downward pressure on receivables turnover between late 2021 and early 2023 aligns with these observations. The recovery and surpassing of turnover ratios in 2024 imply that the company has implemented measures to enhance collection efficiency. Additionally, the impressive revenue surge from early 2024 onwards, combined with improved receivables management, signals a strengthening financial position in the recent quarters.
Payables Turnover
Monolithic Power Systems Inc., payables turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Cost of revenue | 284,324) | 277,257) | 276,676) | 226,853) | 205,444) | 202,889) | 211,326) | 193,453) | 192,285) | 192,203) | 204,516) | 190,043) | 158,834) | 142,630) | 137,211) | 129,102) | 113,396) | ||||||
| Accounts payable | 127,310) | 102,526) | 115,865) | 99,894) | 103,471) | 62,958) | 64,707) | 70,614) | 58,001) | 61,461) | 78,673) | 77,925) | 71,572) | 83,027) | 72,092) | 58,882) | 57,235) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Payables turnover1 | 8.37 | 9.62 | 7.87 | 8.47 | 7.86 | 12.71 | 12.20 | 11.08 | 13.43 | 12.13 | 8.85 | 8.07 | 7.93 | 6.29 | 6.71 | 7.86 | 7.30 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Payables Turnover, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 6.28 | 5.30 | 4.19 | 5.75 | 6.54 | 5.05 | 4.73 | 3.98 | 4.50 | 4.40 | 4.46 | 5.97 | 5.78 | 6.05 | 7.29 | 8.31 | 6.38 | ||||||
| Analog Devices Inc. | 10.84 | 8.30 | 9.63 | 9.94 | 10.91 | 8.98 | 7.62 | 7.76 | 8.09 | 7.70 | 8.43 | 9.01 | 8.17 | 6.30 | 7.82 | 7.25 | 8.66 | ||||||
| Broadcom Inc. | 10.10 | 11.47 | 9.62 | 10.34 | 8.56 | 9.20 | 11.34 | 13.62 | 12.31 | 11.13 | 15.27 | 9.98 | 9.80 | 9.77 | 10.91 | 12.63 | 11.67 | ||||||
| Intel Corp. | 3.33 | 2.85 | 3.20 | 3.36 | 3.78 | 3.79 | 3.77 | 3.81 | 4.30 | 3.77 | 5.21 | 4.63 | 4.92 | 6.13 | 5.05 | 5.82 | 6.49 | ||||||
| KLA Corp. | 10.97 | 10.93 | 10.94 | 10.33 | 11.34 | 11.37 | 10.30 | 7.77 | 7.96 | 8.10 | 7.98 | 8.43 | 7.79 | 8.10 | 8.88 | 9.53 | 9.69 | ||||||
| Lam Research Corp. | 11.63 | 12.79 | 14.24 | 15.69 | 16.55 | 20.50 | 17.34 | 11.33 | 8.52 | 9.25 | 8.99 | 9.31 | 10.12 | 9.43 | 9.33 | 8.82 | 8.94 | ||||||
| NVIDIA Corp. | 7.26 | 6.16 | 5.68 | 5.99 | 9.91 | 9.74 | 8.08 | 4.86 | 5.13 | 5.29 | 5.19 | 5.38 | 5.94 | 5.23 | 5.03 | 5.44 | 5.65 | ||||||
| Qualcomm Inc. | 6.94 | 6.60 | 6.37 | 6.95 | 7.52 | 8.30 | 9.67 | 12.50 | 7.17 | 4.91 | 4.72 | 4.37 | 4.28 | 5.19 | 4.83 | 4.62 | 4.38 | ||||||
| Texas Instruments Inc. | 7.78 | 7.98 | 8.19 | 7.62 | 11.89 | 8.10 | 9.03 | 6.87 | 6.63 | 7.35 | 7.89 | 8.46 | 9.27 | 9.14 | 9.93 | 9.86 | 9.60 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Payables turnover
= (Cost of revenueQ1 2025
+ Cost of revenueQ4 2024
+ Cost of revenueQ3 2024
+ Cost of revenueQ2 2024)
÷ Accounts payable
= (284,324 + 277,257 + 276,676 + 226,853)
÷ 127,310 = 8.37
2 Click competitor name to see calculations.
- Cost of Revenue
- The cost of revenue displayed a generally upward trend over the observed periods. Beginning at approximately $113.4 million in the first quarter of 2021, it increased steadily, peaking at around $277.3 million by the first quarter of 2025. Notable jumps occurred between quarters such as Q2 2022 to Q3 2022 and especially between Q3 2024 and Q4 2024, where the cost surged significantly, indicating either increased production costs or higher sales volume requiring greater expenses.
- Accounts Payable
- Accounts payable showed some variability over the quarters with a less consistent pattern compared to cost of revenue. Starting near $57.2 million in Q1 2021, payables increased to a local peak of about $83.0 million by Q4 2021 but then decreased markedly to near $58.0 million in Q1 2023. Subsequent quarters displayed fluctuations, including a notable rise from Q1 2024 onwards, reaching approximately $127.3 million by Q1 2025. These changes may reflect shifting payment terms, supplier negotiations, or changes in operating cycle dynamics.
- Payables Turnover Ratio
- The payables turnover ratio experienced considerable fluctuations during the period. Initially around 7.3 in early 2021, it trended downward reaching a low near 6.29 by Q4 2021, indicating slower payments relative to purchases. Afterward, it sharply increased, peaking at 13.43 in Q1 2023, which suggests faster payments or possibly reduced accounts payable balances relative to cost of revenue during that period. Since then, the ratio moderated but remained generally high, oscillating between approximately 7.86 and 9.62, indicating a somewhat faster payment cycle compared to earlier years.
- Overall Insights
- The steady rise in cost of revenue implies growth in company operations or increased input costs. Conversely, the accounts payable amount and its turnover ratio illustrate relatively dynamic payment policies or changes in supplier relationships. The high payables turnover ratios in later periods may indicate an improved ability to manage payables or a strategic shift towards quicker payments. The combination of rising costs and changing payables turnover merits attention for cash flow management and working capital optimization.
Working Capital Turnover
Monolithic Power Systems Inc., working capital turnover calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||
| Current assets | 1,788,386) | 1,565,053) | 2,160,450) | 1,997,433) | 1,976,492) | 1,819,499) | 1,735,376) | 1,632,351) | 1,622,629) | 1,410,619) | 1,323,457) | 1,332,089) | 1,247,136) | 1,124,852) | 1,064,494) | 950,080) | 922,430) | ||||||
| Less: Current liabilities | 363,401) | 294,567) | 336,588) | 295,159) | 311,880) | 235,035) | 250,018) | 250,841) | 315,843) | 263,400) | 290,988) | 254,487) | 272,528) | 226,944) | 227,663) | 182,731) | 187,909) | ||||||
| Working capital | 1,424,985) | 1,270,486) | 1,823,862) | 1,702,274) | 1,664,612) | 1,584,464) | 1,485,358) | 1,381,510) | 1,306,786) | 1,147,219) | 1,032,469) | 1,077,602) | 974,608) | 897,908) | 836,831) | 767,349) | 734,521) | ||||||
| Revenue | 637,554) | 621,665) | 620,119) | 507,431) | 457,885) | 454,012) | 474,867) | 441,128) | 451,065) | 460,012) | 495,418) | 461,004) | 377,714) | 336,504) | 323,522) | 293,317) | 254,455) | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Working capital turnover1 | 1.67 | 1.74 | 1.12 | 1.11 | 1.10 | 1.15 | 1.23 | 1.34 | 1.43 | 1.56 | 1.62 | 1.39 | 1.37 | 1.35 | 1.32 | 1.36 | 1.27 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Working Capital Turnover, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 2.00 | 2.19 | 2.16 | 2.07 | 2.15 | 2.25 | 2.44 | 2.45 | 2.54 | 2.73 | 2.95 | 2.72 | 2.42 | 3.78 | 3.36 | 2.71 | 2.64 | ||||||
| Analog Devices Inc. | 3.38 | 3.78 | 4.38 | 5.52 | 7.75 | 10.40 | 6.41 | 6.13 | 4.61 | 4.81 | 4.94 | 4.23 | 3.50 | 2.81 | 21.89 | 49.24 | 6.18 | ||||||
| Applied Materials Inc. | 2.13 | 2.13 | 2.00 | 2.14 | 2.19 | 2.25 | 2.49 | 2.69 | 2.77 | 3.02 | 2.93 | 2.89 | 2.56 | 2.36 | 2.14 | 1.95 | 1.86 | ||||||
| Broadcom Inc. | 681.61 | 17.80 | 64.48 | 8.31 | 5.70 | 2.66 | 3.23 | 3.38 | 3.03 | 2.90 | 3.58 | 3.80 | 3.15 | 2.66 | 2.90 | 3.27 | 3.25 | ||||||
| Intel Corp. | 5.33 | 4.55 | 4.94 | 2.93 | 3.59 | 3.56 | 3.48 | 3.34 | 2.70 | 3.45 | 3.24 | 3.14 | 2.34 | 2.61 | 2.47 | 3.16 | 3.59 | ||||||
| KLA Corp. | 1.89 | 1.83 | 1.89 | 2.31 | 2.20 | 2.27 | 2.31 | 2.25 | 2.19 | 2.14 | 2.30 | 2.08 | 2.06 | 1.93 | 1.91 | 1.90 | 1.97 | ||||||
| Lam Research Corp. | 1.91 | 1.74 | 1.77 | 1.63 | 1.81 | 1.93 | 2.03 | 2.08 | 2.10 | 2.23 | 2.18 | 2.01 | 2.04 | 1.80 | 1.72 | 1.51 | 1.41 | ||||||
| Micron Technology Inc. | 1.88 | 1.66 | 1.30 | 1.07 | 1.07 | 0.94 | 1.09 | 1.39 | 1.66 | 2.16 | 2.06 | 2.14 | 2.17 | 2.05 | 1.95 | 1.98 | 2.04 | ||||||
| NVIDIA Corp. | 2.07 | 1.81 | 1.90 | 1.77 | 1.47 | 1.63 | 1.75 | 1.50 | 1.23 | 1.10 | 1.09 | 1.03 | 1.36 | 1.37 | 1.38 | 1.06 | 0.67 | ||||||
| Qualcomm Inc. | 2.53 | 2.65 | 2.75 | 2.41 | 2.54 | 2.79 | 3.21 | 3.66 | 3.90 | 4.99 | 5.88 | 4.80 | 4.53 | 4.13 | 3.96 | 3.19 | 2.53 | ||||||
| Texas Instruments Inc. | 1.51 | 1.37 | 1.29 | 1.22 | 1.21 | 1.48 | 1.46 | 1.47 | 1.61 | 1.81 | 1.84 | 1.87 | 1.65 | 1.65 | 1.57 | 1.87 | 1.77 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Working capital turnover
= (RevenueQ1 2025
+ RevenueQ4 2024
+ RevenueQ3 2024
+ RevenueQ2 2024)
÷ Working capital
= (637,554 + 621,665 + 620,119 + 507,431)
÷ 1,424,985 = 1.67
2 Click competitor name to see calculations.
- Working Capital Trend
- The working capital demonstrates a general upward trend from March 2021 through September 2024, increasing from approximately 734.5 million USD to around 1.82 billion USD. This growth suggests an expanding asset base or improved current asset management. However, in the last two reported periods, December 2024 and March 2025, there is a notable decline in working capital, dropping to roughly 1.27 billion USD and then slightly recovering to 1.42 billion USD. This may indicate changes in short-term asset or liability management or an operational shift.
- Revenue Trend
- Revenue shows consistent growth over the observed periods. Starting at about 254.5 million USD in March 2021, it rises steadily to exceed 620 million USD by December 2024 and March 2025. There are minor fluctuations, particularly a slight decrease in revenue during late 2022 and early 2023 quarters, but the overall momentum remains positive. This continuous increase indicates strengthened sales performance or market expansion.
- Working Capital Turnover Ratio Trend
- The working capital turnover ratio exhibits variability throughout the periods. Initially, it increases modestly from 1.27 in March 2021 to a peak of 1.62 in September 2022, reflecting improved efficiency in using working capital to generate revenue. After this peak, the ratio declines gradually through 2023 and into the early part of 2024, reaching a low near 1.10 by March 2024, indicating a potential reduction in working capital efficiency. However, in the final two quarters, the ratio rebounds sharply to 1.74 in December 2024 and settles at about 1.67 by March 2025, suggesting a significant improvement in asset utilization or revenue generation relative to working capital.
- Combined Insights
- The parallel increase in revenue and working capital over most quarters indicates business growth accompanied by increased short-term assets or investments. The fluctuations in the working capital turnover ratio imply periods where the company either became more or less efficient at converting working capital into revenue. The recent sharp improvement in turnover ratio alongside a decrease in working capital may reflect strategic working capital management or operational changes to enhance liquidity and asset utilization. These patterns suggest a dynamic approach to managing growth and efficiency in response to market conditions or internal objectives.
Average Inventory Processing Period
Monolithic Power Systems Inc., average inventory processing period calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Inventory turnover | 2.34 | 2.35 | 2.15 | 1.98 | 2.05 | 2.08 | 1.99 | 1.83 | 1.81 | 1.67 | 1.75 | 1.75 | 1.83 | 2.01 | 2.33 | 2.61 | 2.38 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average inventory processing period1 | 156 | 155 | 170 | 184 | 178 | 175 | 184 | 199 | 202 | 219 | 208 | 209 | 200 | 181 | 157 | 140 | 153 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Inventory Processing Period, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 169 | 160 | 156 | 149 | 140 | 130 | 133 | 135 | 120 | 106 | 101 | 86 | 91 | 84 | 88 | 89 | 96 | ||||||
| Analog Devices Inc. | 135 | 131 | 127 | 128 | 131 | 135 | 140 | 136 | 129 | 114 | 96 | 97 | 100 | 157 | 115 | 116 | 115 | ||||||
| Applied Materials Inc. | 139 | 139 | 144 | 148 | 147 | 148 | 149 | 152 | 157 | 157 | 151 | 140 | 131 | 129 | 130 | 138 | 143 | ||||||
| Broadcom Inc. | 36 | 34 | 41 | 45 | 55 | 62 | 60 | 61 | 61 | 63 | 62 | 57 | 53 | 45 | 40 | 35 | 33 | ||||||
| Intel Corp. | 124 | 125 | 124 | 127 | 130 | 125 | 128 | 131 | 136 | 133 | 126 | 121 | 123 | 112 | 104 | 93 | 88 | ||||||
| KLA Corp. | 275 | 282 | 283 | 285 | 266 | 249 | 237 | 225 | 230 | 218 | 214 | 208 | 211 | 207 | 202 | 207 | 206 | ||||||
| Lam Research Corp. | 188 | 196 | 208 | 206 | 198 | 182 | 171 | 169 | 163 | 155 | 140 | 126 | 124 | 126 | 131 | 135 | 132 | ||||||
| Micron Technology Inc. | 158 | 166 | 164 | 168 | 163 | 181 | 182 | 177 | 192 | 144 | 119 | 116 | 101 | 95 | 98 | 106 | 133 | ||||||
| NVIDIA Corp. | 109 | 116 | 129 | 136 | 149 | 162 | 135 | 121 | 112 | 101 | 94 | 97 | 100 | 106 | 99 | 105 | 96 | ||||||
| Qualcomm Inc. | 128 | 137 | 133 | 138 | 141 | 148 | 144 | 140 | 138 | 124 | 112 | 102 | 93 | 83 | 87 | 83 | 88 | ||||||
| Texas Instruments Inc. | 254 | 252 | 241 | 229 | 228 | 225 | 222 | 215 | 190 | 161 | 143 | 133 | 127 | 117 | 115 | 117 | 127 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.34 = 156
2 Click competitor name to see calculations.
- Inventory Turnover Trend
- The inventory turnover ratio exhibits a fluctuating but generally declining pattern from March 2021 through December 2022, decreasing from 2.38 to a low of approximately 1.67. This suggests a slowing in the frequency at which inventory is sold and replaced during this period. Beginning in early 2023, the turnover ratio demonstrates a recovery trend, steadily increasing to about 2.35 by March 2025, indicating improved efficiency in managing inventory turnover towards the end of the analyzed timeframe.
- Average Inventory Processing Period Trend
- The average inventory processing period, measured in days, mirrors the inverse of the turnover ratio trend. It starts at 153 days in March 2021, rising steadily to a peak of around 219 days by December 2022. This increase reflects longer durations inventories remain before being sold. From the first quarter of 2023 onwards, this measure consistently declines to approximately 156 days by March 2025, signalling an improvement in inventory management and faster processing times in the latter periods.
- Correlation between Inventory Turnover and Processing Period
- There is a clear inverse relationship between inventory turnover and average inventory processing period throughout the observed periods. As turnover falls, the processing period lengthens, and vice versa. This pattern aligns with the typical understanding that lower turnover rates correspond with longer inventory holding periods.
- Overall Insights
- The analysis reveals that inventory management efficiency deteriorated in the middle of the timeline, reaching its lowest point by the end of 2022. However, a consistent recovery trend in turnover and reduction in processing days during 2023 to early 2025 suggests that actions taken to improve inventory control have been effective. This recovery may positively impact working capital efficiency and operational performance.
Average Receivable Collection Period
Monolithic Power Systems Inc., average receivable collection period calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Receivables turnover | 11.11 | 12.79 | 12.38 | 12.00 | 9.40 | 10.13 | 9.83 | 10.92 | 10.13 | 9.82 | 10.89 | 11.94 | 11.06 | 11.52 | 13.83 | 13.41 | 11.10 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average receivable collection period1 | 33 | 29 | 29 | 30 | 39 | 36 | 37 | 33 | 36 | 37 | 34 | 31 | 33 | 32 | 26 | 27 | 33 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Receivable Collection Period, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 72 | 88 | 109 | 90 | 81 | 87 | 83 | 72 | 64 | 64 | 69 | 69 | 71 | 60 | 55 | 55 | 70 | ||||||
| Analog Devices Inc. | 47 | 52 | 42 | 35 | 38 | 44 | 46 | 46 | 47 | 55 | 57 | 60 | 71 | 73 | 46 | 48 | 52 | ||||||
| Applied Materials Inc. | 79 | 70 | 68 | 66 | 65 | 71 | 72 | 76 | 75 | 86 | 72 | 72 | 67 | 78 | 65 | 62 | 61 | ||||||
| Broadcom Inc. | 33 | 31 | 36 | 47 | 47 | 32 | 30 | 32 | 34 | 33 | 31 | 38 | 33 | 28 | 31 | 35 | 37 | ||||||
| Intel Corp. | 21 | 24 | 21 | 21 | 22 | 23 | 20 | 20 | 25 | 24 | 39 | 30 | 33 | 44 | 39 | 35 | 34 | ||||||
| KLA Corp. | 70 | 68 | 62 | 70 | 59 | 61 | 67 | 79 | 69 | 72 | 68 | 77 | 72 | 69 | 68 | 73 | 63 | ||||||
| Lam Research Corp. | 69 | 62 | 56 | 69 | 65 | 59 | 63 | 78 | 93 | 91 | 81 | 75 | 79 | 76 | 77 | 89 | 77 | ||||||
| Micron Technology Inc. | 93 | 96 | 88 | 86 | 66 | 57 | 49 | 36 | 45 | 61 | 70 | 63 | 65 | 70 | 61 | 52 | 61 | ||||||
| NVIDIA Corp. | 57 | 60 | 68 | 79 | 58 | 52 | 63 | 65 | 67 | 63 | 59 | 60 | 57 | 53 | 63 | 58 | 59 | ||||||
| Texas Instruments Inc. | 42 | 40 | 43 | 39 | 36 | 37 | 40 | 38 | 35 | 35 | 37 | 41 | 35 | 34 | 34 | 35 | 37 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 11.11 = 33
2 Click competitor name to see calculations.
- Receivables Turnover
- The receivables turnover ratio experienced fluctuations throughout the observed periods from March 31, 2021, to March 31, 2025. Initially, the ratio increased from 11.1 to a peak of 13.83 by September 30, 2021, indicating an improvement in the efficiency of collecting receivables. However, following this peak, the ratio demonstrated a descending trend until reaching a low of 9.4 in March 31, 2024. Subsequently, the ratio showed some recovery, rising to 12.79 by December 31, 2024, before decreasing again to 11.11 as of March 31, 2025. This pattern indicates variability in the company's ability to manage its receivables efficiently, with periods of both improvement and decline.
- Average Receivable Collection Period
- The average receivable collection period moved in an inverse pattern to the receivables turnover, as expected. It improved from 33 days to a minimum of 26 days by September 30, 2021, reflecting faster collection of receivables. After this point, the collection period lengthened, peaking at 39 days by March 31, 2024, suggesting a slower collection process. After the peak, the period shortened again to around 29 days by September 30, 2024, before slightly increasing back to 33 days by March 31, 2025. These fluctuations mirror the changes in the receivables turnover ratio and indicate variability in collection efficiency over time.
- General Insights
- Throughout the period, the data reflects cyclical trends in receivables management, with phases of improved efficiency followed by periods of deceleration in collections. The initial improvement up to late 2021 suggests enhanced credit and collection policies or favorable market conditions, while subsequent declines may reflect changed customer payment behaviors or operational challenges. The recovery noticed towards late 2024 could imply renewed focus on collection efforts or adjustments in the credit terms. Overall, the company’s receivables management shows dynamic changes rather than consistent improvement or deterioration.
Operating Cycle
Monolithic Power Systems Inc., operating cycle calculation (quarterly data)
No. days
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | 156 | 155 | 170 | 184 | 178 | 175 | 184 | 199 | 202 | 219 | 208 | 209 | 200 | 181 | 157 | 140 | 153 | ||||||
| Average receivable collection period | 33 | 29 | 29 | 30 | 39 | 36 | 37 | 33 | 36 | 37 | 34 | 31 | 33 | 32 | 26 | 27 | 33 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Operating cycle1 | 189 | 184 | 199 | 214 | 217 | 211 | 221 | 232 | 238 | 256 | 242 | 240 | 233 | 213 | 183 | 167 | 186 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Operating Cycle, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 241 | 248 | 265 | 239 | 221 | 217 | 216 | 207 | 184 | 170 | 170 | 155 | 162 | 144 | 143 | 144 | 166 | ||||||
| Analog Devices Inc. | 182 | 183 | 169 | 163 | 169 | 179 | 186 | 182 | 176 | 169 | 153 | 157 | 171 | 230 | 161 | 164 | 167 | ||||||
| Applied Materials Inc. | 218 | 209 | 212 | 214 | 212 | 219 | 221 | 228 | 232 | 243 | 223 | 212 | 198 | 207 | 195 | 200 | 204 | ||||||
| Broadcom Inc. | 69 | 65 | 77 | 92 | 102 | 94 | 90 | 93 | 95 | 96 | 93 | 95 | 86 | 73 | 71 | 70 | 70 | ||||||
| Intel Corp. | 145 | 149 | 145 | 148 | 152 | 148 | 148 | 151 | 161 | 157 | 165 | 151 | 156 | 156 | 143 | 128 | 122 | ||||||
| KLA Corp. | 345 | 350 | 345 | 355 | 325 | 310 | 304 | 304 | 299 | 290 | 282 | 285 | 283 | 276 | 270 | 280 | 269 | ||||||
| Lam Research Corp. | 257 | 258 | 264 | 275 | 263 | 241 | 234 | 247 | 256 | 246 | 221 | 201 | 203 | 202 | 208 | 224 | 209 | ||||||
| Micron Technology Inc. | 251 | 262 | 252 | 254 | 229 | 238 | 231 | 213 | 237 | 205 | 189 | 179 | 166 | 165 | 159 | 158 | 194 | ||||||
| NVIDIA Corp. | 166 | 176 | 197 | 215 | 207 | 214 | 198 | 186 | 179 | 164 | 153 | 157 | 157 | 159 | 162 | 163 | 155 | ||||||
| Texas Instruments Inc. | 296 | 292 | 284 | 268 | 264 | 262 | 262 | 253 | 225 | 196 | 180 | 174 | 162 | 151 | 149 | 152 | 164 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 156 + 33 = 189
2 Click competitor name to see calculations.
The analysis of key operational efficiency metrics over the observed quarterly periods reveals several noteworthy trends and patterns in working capital management.
- Average Inventory Processing Period
- This metric exhibited an overall upward trend from the beginning through the end of 2022, increasing from 153 days in Q1 2021 to a peak of 219 days in Q4 2022. This indicates a lengthening in the time inventory remains on hand before processing, potentially reflecting slower inventory turnover or larger inventory buildup during this period. Starting in 2023, the inventory processing period began to gradually decline, reaching 156 days by Q1 2025, suggesting improvements in inventory management or increased sales processing efficiency.
- Average Receivable Collection Period
- The receivable collection days showed relative stability with minor fluctuations throughout the timeframe. Beginning at 33 days in Q1 2021, it dipped to a low of 26 days mid-2021 before slightly increasing again to a range between 29 and 39 days in the last few quarters. These variations imply some inconsistency in collection efficiency, with recent quarters indicating a moderate lengthening compared to initial periods, though the changes remain within a narrow band.
- Operating Cycle
- The operating cycle, representing the total time from inventory acquisition to cash collection, aligns closely with the trends in inventory processing and receivables. It increased noticeably from 186 days at the start of 2021 to a peak of 256 days by Q4 2022. This extension in the operating cycle suggests a slowing of overall cash conversion efficiency during this period. From 2023 onward, the operating cycle began to contract, falling back to 189 days by Q1 2025, indicating a positive shift toward faster turnover and improved liquidity management.
Overall, the data highlights a period of increasing operational cycle lengths and inventory holding through late 2022, followed by progressive improvement over 2023 and early 2025. This suggests initial challenges in working capital efficiency were addressed, leading to a shortened cash conversion cycle and likely enhanced operational performance in more recent quarters.
Average Payables Payment Period
Monolithic Power Systems Inc., average payables payment period calculation (quarterly data)
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Payables turnover | 8.37 | 9.62 | 7.87 | 8.47 | 7.86 | 12.71 | 12.20 | 11.08 | 13.43 | 12.13 | 8.85 | 8.07 | 7.93 | 6.29 | 6.71 | 7.86 | 7.30 | ||||||
| Short-term Activity Ratio (no. days) | |||||||||||||||||||||||
| Average payables payment period1 | 44 | 38 | 46 | 43 | 46 | 29 | 30 | 33 | 27 | 30 | 41 | 45 | 46 | 58 | 54 | 46 | 50 | ||||||
| Benchmarks (no. days) | |||||||||||||||||||||||
| Average Payables Payment Period, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 58 | 69 | 87 | 63 | 56 | 72 | 77 | 92 | 81 | 83 | 82 | 61 | 63 | 60 | 50 | 44 | 57 | ||||||
| Analog Devices Inc. | 34 | 44 | 38 | 37 | 33 | 41 | 48 | 47 | 45 | 47 | 43 | 41 | 45 | 58 | 47 | 50 | 42 | ||||||
| Broadcom Inc. | 36 | 32 | 38 | 35 | 43 | 40 | 32 | 27 | 30 | 33 | 24 | 37 | 37 | 37 | 33 | 29 | 31 | ||||||
| Intel Corp. | 110 | 128 | 114 | 109 | 97 | 96 | 97 | 96 | 85 | 97 | 70 | 79 | 74 | 60 | 72 | 63 | 56 | ||||||
| KLA Corp. | 33 | 33 | 33 | 35 | 32 | 32 | 35 | 47 | 46 | 45 | 46 | 43 | 47 | 45 | 41 | 38 | 38 | ||||||
| Lam Research Corp. | 31 | 29 | 26 | 23 | 22 | 18 | 21 | 32 | 43 | 39 | 41 | 39 | 36 | 39 | 39 | 41 | 41 | ||||||
| NVIDIA Corp. | 50 | 59 | 64 | 61 | 37 | 37 | 45 | 75 | 71 | 69 | 70 | 68 | 61 | 70 | 72 | 67 | 65 | ||||||
| Qualcomm Inc. | 53 | 55 | 57 | 52 | 49 | 44 | 38 | 29 | 51 | 74 | 77 | 83 | 85 | 70 | 76 | 79 | 83 | ||||||
| Texas Instruments Inc. | 47 | 46 | 45 | 48 | 31 | 45 | 40 | 53 | 55 | 50 | 46 | 43 | 39 | 40 | 37 | 37 | 38 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 8.37 = 44
2 Click competitor name to see calculations.
- Payables Turnover Trend
- The payables turnover ratio exhibited variability over the analyzed periods, initially fluctuating around a moderate range from 6.29 to 8.85. From the fourth quarter of 2021 to the end of 2022, a notable increase is observed, peaking at 13.43 in the first quarter of 2023, indicating an improvement in the frequency of payments to suppliers during that period. Following this peak, the ratio slightly declined but remained relatively high, fluctuating between 7.86 and 9.62 through the first quarter of 2025, which suggests a return to a more normalized payment cycle after the spike.
- Average Payables Payment Period Trend
- The average payables payment period, representing the number of days to pay suppliers, inversely mirrors the payables turnover ratio. Initially, the payment period ranged from 30 to 58 days, with the highest days recorded at 58 in the final quarter of 2021. Subsequently, a significant reduction occurred during 2022 and early 2023, reaching the lowest point of 27 days in the first quarter of 2023, corresponding with the peak in payables turnover. After this low, the payment period extended again, ranging mostly between 38 and 46 days toward the latter part of the timeline, indicating a slight slowing in payment speed compared to the peak efficiency period.
- Insights and Implications
- The inverse relationship between the payables turnover ratio and the average payables payment period is evident and aligns with typical financial patterns, where a higher turnover ratio corresponds with a shorter payment cycle. The peak in payables turnover and corresponding drop in payment days around early 2023 suggests a period of accelerated payment practices, potentially to leverage supplier relationships or take advantage of early payment discounts. The subsequent normalization points to a strategic adjustment towards more balanced cash flow management. Overall, the company maintained reasonable management of payables throughout the examined periods, with fluctuations that may reflect operational adjustments or external economic influences.
Cash Conversion Cycle
Monolithic Power Systems Inc., cash conversion cycle calculation (quarterly data)
No. days
| Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | |||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||||||||||||||||||
| Average inventory processing period | 156 | 155 | 170 | 184 | 178 | 175 | 184 | 199 | 202 | 219 | 208 | 209 | 200 | 181 | 157 | 140 | 153 | ||||||
| Average receivable collection period | 33 | 29 | 29 | 30 | 39 | 36 | 37 | 33 | 36 | 37 | 34 | 31 | 33 | 32 | 26 | 27 | 33 | ||||||
| Average payables payment period | 44 | 38 | 46 | 43 | 46 | 29 | 30 | 33 | 27 | 30 | 41 | 45 | 46 | 58 | 54 | 46 | 50 | ||||||
| Short-term Activity Ratio | |||||||||||||||||||||||
| Cash conversion cycle1 | 145 | 146 | 153 | 171 | 171 | 182 | 191 | 199 | 211 | 226 | 201 | 195 | 187 | 155 | 129 | 121 | 136 | ||||||
| Benchmarks | |||||||||||||||||||||||
| Cash Conversion Cycle, Competitors2 | |||||||||||||||||||||||
| Advanced Micro Devices Inc. | 183 | 179 | 178 | 176 | 165 | 145 | 139 | 115 | 103 | 87 | 88 | 94 | 99 | 84 | 93 | 100 | 109 | ||||||
| Analog Devices Inc. | 148 | 139 | 131 | 126 | 136 | 138 | 138 | 135 | 131 | 122 | 110 | 116 | 126 | 172 | 114 | 114 | 125 | ||||||
| Broadcom Inc. | 33 | 33 | 39 | 57 | 59 | 54 | 58 | 66 | 65 | 63 | 69 | 58 | 49 | 36 | 38 | 41 | 39 | ||||||
| Intel Corp. | 35 | 21 | 31 | 39 | 55 | 52 | 51 | 55 | 76 | 60 | 95 | 72 | 82 | 96 | 71 | 65 | 66 | ||||||
| KLA Corp. | 312 | 317 | 312 | 320 | 293 | 278 | 269 | 257 | 253 | 245 | 236 | 242 | 236 | 231 | 229 | 242 | 231 | ||||||
| Lam Research Corp. | 226 | 229 | 238 | 252 | 241 | 223 | 213 | 215 | 213 | 207 | 180 | 162 | 167 | 163 | 169 | 183 | 168 | ||||||
| NVIDIA Corp. | 116 | 117 | 133 | 154 | 170 | 177 | 153 | 111 | 108 | 95 | 83 | 89 | 96 | 89 | 90 | 96 | 90 | ||||||
| Texas Instruments Inc. | 249 | 246 | 239 | 220 | 233 | 217 | 222 | 200 | 170 | 146 | 134 | 131 | 123 | 111 | 112 | 115 | 126 | ||||||
Based on: 10-Q (reporting date: 2025-03-31), 10-K (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31).
1 Q1 2025 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 156 + 33 – 44 = 145
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several key trends concerning the company's inventory management, receivables, payables, and overall cash conversion cycle over the presented periods.
- Average Inventory Processing Period
- The inventory processing period demonstrates a general upward trend from March 2021, starting at 153 days, and peaking around December 2022 at 219 days. Following this peak, there is a gradual decline through 2023 and into the first quarter of 2025, reaching approximately 156 days. This suggests that the company initially experienced increasing inventory holding times but made improvements to reduce inventory levels or improve turnover in the later periods.
- Average Receivable Collection Period
- The receivable collection period remains relatively stable throughout the observed quarters, fluctuating mostly between 26 and 39 days. Minor increases and decreases occur, with slight spikes around the second quarters of 2022 and 2024. These fluctuations indicate consistent credit management practices with only moderate changes in the efficiency of collections over time.
- Average Payables Payment Period
- The payables payment period shows some variability, starting at 50 days in early 2021, decreasing notably to a low of 27 days by March 2023, and then oscillating thereafter within a range of approximately 29 to 46 days. This pattern may reflect changes in payment policies or supplier negotiations, with a tendency towards quicker payment times during late 2022 and early 2023, before extending payment periods again.
- Cash Conversion Cycle (CCC)
- The cash conversion cycle follows the movements of inventory processing and payables, increasing from 136 days in March 2021 to a peak of 226 days in December 2022, reflecting longer cash tied up in operations. Subsequently, the CCC decreases steadily, reaching 145 days by the first quarter of 2025, indicative of improved working capital efficiency. The reduction in CCC aligns notably with the decline in the inventory processing period and the stabilization of payables and receivables periods.
Overall, the data suggest that while the company experienced an increase in inventory holding and a lengthening cash conversion cycle through 2022, focused initiatives thereafter appear to have led to better inventory turnover and working capital management. Receivable collection remains steady, and payables management shows some adaptive timing shifts, all contributing to a more efficient cash conversion cycle in recent quarters.