Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Debt Ratios
Coverage Ratios
Monolithic Power Systems Inc., solvency 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 solvency profile is characterized by an exceptionally conservative capital structure and a minimal reliance on external debt over the five-year period ending December 31, 2024. The company maintains a strong balance sheet with virtually no long-term debt obligations relative to its equity and asset base.
- Debt Ratios
- Debt to equity, debt to capital, and debt to assets ratios remained at or near zero throughout the analyzed period. A negligible increase in the debt to equity ratio to 0.01 was observed in 2024, though this does not materially alter the overall low-leverage position.
- Financial Leverage
- A general downward trend in financial leverage is observed from 2021 onward. After a peak of 1.27 in 2021, the ratio declined steadily to 1.15 by 2024, indicating a reduction in the proportion of assets financed through liabilities relative to equity.
- Fixed Charge Coverage
- Fixed charge coverage ratios remained substantially high throughout the period, peaking at 195.13 in 2022. While the ratio decreased to 147.79 by 2024, the values remain far above typical thresholds, signifying an immense capacity to meet all fixed financial obligations from operating earnings.
Overall, the trend indicates a highly solvent organization with negligible financial risk associated with debt repayment and a consistent strategy of equity-based financing.
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Debt to Equity
Monolithic Power Systems Inc., debt to equity 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) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Stockholders’ equity | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Solvency Ratio | ||||||
| Debt to equity1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.03 | 0.04 | 0.05 | 0.04 | — | |
| Analog Devices Inc. | 0.22 | 0.20 | 0.18 | 0.18 | 0.43 | |
| Applied Materials Inc. | 0.33 | 0.35 | 0.45 | 0.45 | 0.52 | |
| Broadcom Inc. | 1.00 | 1.64 | 1.74 | 1.59 | 1.72 | |
| Intel Corp. | 0.50 | 0.47 | 0.41 | 0.40 | — | |
| KLA Corp. | 1.97 | 2.02 | 4.75 | 1.02 | — | |
| Lam Research Corp. | 0.58 | 0.61 | 0.80 | 0.83 | — | |
| Marvell Technology Inc. | 0.28 | 0.29 | 0.29 | 0.14 | — | |
| Micron Technology Inc. | 0.30 | 0.30 | 0.14 | 0.15 | 0.17 | |
| NVIDIA Corp. | 0.23 | 0.50 | 0.41 | 0.41 | — | |
| Qualcomm Inc. | 0.56 | 0.71 | 0.86 | 1.58 | 2.59 | |
| Texas Instruments Inc. | 0.80 | 0.66 | 0.60 | 0.58 | — | |
| Debt to Equity, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.46 | 0.46 | 0.43 | 0.49 | — | |
| Debt to Equity, Industry | ||||||
| Information Technology | 0.61 | 0.66 | 0.70 | 0.83 | — | |
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
Debt to equity = Total debt ÷ Stockholders’ equity
= 0 ÷ 3,145,767 = 0.00
2 Click competitor name to see calculations.
An analysis of the solvency indicators reveals a significant and consistent expansion of the equity base from 2020 through 2024. The absence of recorded total debt suggests a zero-leverage financial strategy throughout the observed period.
- Stockholders' Equity Growth
- Stockholders' equity demonstrated a steady upward trajectory, increasing from 966,587 thousand US dollars in 2020 to 3,145,767 thousand US dollars by the end of 2024. This represents a substantial cumulative increase, with the most pronounced growth occurring between 2023 and 2024, where equity rose by approximately 53%.
- Debt to Equity Position
- Because total debt remained at zero or was not recorded for the duration of the five-year period, the debt-to-equity ratio is effectively null. This indicates that the entity is not utilizing external debt financing to fund its operations or growth, resulting in an exceptionally low solvency risk and a capital structure comprised entirely of equity.
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Debt to Equity (including Operating Lease Liability)
Monolithic Power Systems Inc., debt to equity (including operating lease liability) 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) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities (included in Other accrued liabilities) | 2,819) | 2,303) | 2,133) | 2,539) | 1,406) | |
| Long-term operating lease liabilities | 12,974) | 5,565) | 1,664) | 3,268) | 1,693) | |
| Total debt (including operating lease liability) | 15,793) | 7,868) | 3,797) | 5,807) | 3,099) | |
| Stockholders’ equity | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.04 | 0.06 | 0.05 | 0.10 | — | |
| Analog Devices Inc. | 0.23 | 0.21 | 0.19 | 0.19 | 0.46 | |
| Applied Materials Inc. | 0.35 | 0.37 | 0.48 | 0.47 | 0.54 | |
| Broadcom Inc. | 1.02 | 1.65 | 1.76 | 1.61 | 1.75 | |
| Intel Corp. | 0.51 | 0.47 | 0.42 | 0.40 | — | |
| KLA Corp. | 2.02 | 2.08 | 4.83 | 1.05 | — | |
| Lam Research Corp. | 0.62 | 0.64 | 0.83 | 0.86 | — | |
| Marvell Technology Inc. | 0.30 | 0.30 | 0.30 | 0.16 | — | |
| Micron Technology Inc. | 0.31 | 0.32 | 0.15 | 0.17 | 0.19 | |
| NVIDIA Corp. | 0.26 | 0.54 | 0.44 | 0.46 | — | |
| Qualcomm Inc. | 0.59 | 0.74 | 0.90 | 1.64 | 2.67 | |
| Texas Instruments Inc. | 0.85 | 0.70 | 0.63 | 0.62 | — | |
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.48 | 0.48 | 0.44 | 0.51 | — | |
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.67 | 0.72 | 0.76 | 0.90 | — | |
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
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 15,793 ÷ 3,145,767 = 0.01
2 Click competitor name to see calculations.
The analysis of solvency indicators between December 31, 2020, and December 31, 2024, reveals a capital structure characterized by extremely low leverage and a strong reliance on equity financing. While both total debt and stockholders' equity increased over the five-year period, the rate of equity growth significantly outpaced the accumulation of liabilities, maintaining a negligible debt-to-equity profile.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited a general upward trajectory, rising from 3,099 thousand US dollars in 2020 to 15,793 thousand US dollars by 2024. Although a temporary decrease occurred in 2022, where debt fell to 3,797 thousand US dollars, a sharp acceleration in borrowing or lease obligations is evident in the final two years, with the balance more than doubling between 2023 and 2024.
- Stockholders' Equity Expansion
- Stockholders' equity demonstrated consistent and robust growth throughout the period. The equity base expanded from 966,587 thousand US dollars in 2020 to 3,145,767 thousand US dollars in 2024. This steady increase indicates strong internal capital accumulation and a significant strengthening of the company's net asset position.
- Debt to Equity Ratio Interpretation
- The debt-to-equity ratio remained at 0.00 for four consecutive years from 2020 through 2023, reflecting a nearly debt-free balance sheet relative to the size of the equity. A marginal increase to 0.01 was recorded on December 31, 2024. Despite the increase in total debt, the simultaneous expansion of equity has ensured that the leverage ratio remains minimal, signifying a very low risk of insolvency and high financial stability.
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Debt to Capital
Monolithic Power Systems Inc., debt to capital 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) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Stockholders’ equity | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Total capital | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Solvency Ratio | ||||||
| Debt to capital1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.03 | 0.04 | 0.04 | 0.04 | — | |
| Analog Devices Inc. | 0.18 | 0.16 | 0.15 | 0.15 | 0.30 | |
| Applied Materials Inc. | 0.25 | 0.26 | 0.31 | 0.31 | 0.34 | |
| Broadcom Inc. | 0.50 | 0.62 | 0.64 | 0.61 | 0.63 | |
| Intel Corp. | 0.34 | 0.32 | 0.29 | 0.29 | — | |
| KLA Corp. | 0.66 | 0.67 | 0.83 | 0.50 | — | |
| Lam Research Corp. | 0.37 | 0.38 | 0.44 | 0.45 | — | |
| Marvell Technology Inc. | 0.22 | 0.22 | 0.22 | 0.12 | — | |
| Micron Technology Inc. | 0.23 | 0.23 | 0.12 | 0.13 | 0.15 | |
| NVIDIA Corp. | 0.18 | 0.33 | 0.29 | 0.29 | — | |
| Qualcomm Inc. | 0.36 | 0.42 | 0.46 | 0.61 | 0.72 | |
| Texas Instruments Inc. | 0.45 | 0.40 | 0.37 | 0.37 | — | |
| Debt to Capital, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.31 | 0.32 | 0.30 | 0.33 | — | |
| Debt to Capital, Industry | ||||||
| Information Technology | 0.38 | 0.40 | 0.41 | 0.45 | — | |
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
Debt to capital = Total debt ÷ Total capital
= 0 ÷ 3,145,767 = 0.00
2 Click competitor name to see calculations.
The total capital of Monolithic Power Systems Inc. exhibited a consistent and accelerating upward trend from December 31, 2020, through December 31, 2024. Total capital expanded from 966,587 thousand US dollars to 3,145,767 thousand US dollars over the five-year period, reflecting a substantial increase in the overall financial base of the organization.
- Total Capital Growth Trends
- A continuous increase in total capital is observed each year. The growth was particularly pronounced between 2023 and 2024, where capital rose from 2,049,939 thousand US dollars to 3,145,767 thousand US dollars, representing a period-over-period increase of approximately 53.4%.
- Solvency and Leverage Analysis
- The absence of reported total debt across all analyzed periods suggests a capital structure that is not reliant on interest-bearing debt. Because no debt is recorded, the debt to capital ratio is effectively zero, indicating a highly conservative solvency profile where the company's capital is funded entirely through equity or internally generated reserves.
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Debt to Capital (including Operating Lease Liability)
Monolithic Power Systems Inc., debt to capital (including operating lease liability) 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) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities (included in Other accrued liabilities) | 2,819) | 2,303) | 2,133) | 2,539) | 1,406) | |
| Long-term operating lease liabilities | 12,974) | 5,565) | 1,664) | 3,268) | 1,693) | |
| Total debt (including operating lease liability) | 15,793) | 7,868) | 3,797) | 5,807) | 3,099) | |
| Stockholders’ equity | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Total capital (including operating lease liability) | 3,161,560) | 2,057,807) | 1,672,399) | 1,249,792) | 969,686) | |
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.04 | 0.05 | 0.05 | 0.09 | — | |
| Analog Devices Inc. | 0.18 | 0.17 | 0.16 | 0.16 | 0.31 | |
| Applied Materials Inc. | 0.26 | 0.27 | 0.32 | 0.32 | 0.35 | |
| Broadcom Inc. | 0.50 | 0.62 | 0.64 | 0.62 | 0.64 | |
| Intel Corp. | 0.34 | 0.32 | 0.30 | 0.29 | — | |
| KLA Corp. | 0.67 | 0.67 | 0.83 | 0.51 | — | |
| Lam Research Corp. | 0.38 | 0.39 | 0.45 | 0.46 | — | |
| Marvell Technology Inc. | 0.23 | 0.23 | 0.23 | 0.14 | — | |
| Micron Technology Inc. | 0.24 | 0.24 | 0.13 | 0.14 | 0.16 | |
| NVIDIA Corp. | 0.20 | 0.35 | 0.31 | 0.31 | — | |
| Qualcomm Inc. | 0.37 | 0.43 | 0.47 | 0.62 | 0.73 | |
| Texas Instruments Inc. | 0.46 | 0.41 | 0.39 | 0.38 | — | |
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.32 | 0.32 | 0.31 | 0.34 | — | |
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.40 | 0.42 | 0.43 | 0.47 | — | |
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
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 15,793 ÷ 3,161,560 = 0.00
2 Click competitor name to see calculations.
The company's capital structure is characterized by an exceptionally low reliance on debt, maintaining a high degree of solvency throughout the five-year period from 2020 to 2024.
- Total Debt Trends
- Total debt, including operating lease liabilities, exhibited an overall upward trajectory, increasing from US$ 3,099 thousand in 2020 to US$ 15,793 thousand in 2024. While a brief contraction occurred in 2022, when debt decreased to US$ 3,797 thousand, a sharp increase was recorded between 2023 and 2024, with the debt balance doubling in the final year of the period.
- Total Capital Expansion
- Total capital demonstrated consistent and robust growth over the analyzed timeframe. Starting at US$ 969,686 thousand in 2020, total capital expanded to US$ 3,161,560 thousand by 2024. This represents a substantial increase in the company's overall financial base, reflecting significant growth in the capital available to support operations.
- Debt to Capital Ratio Interpretation
- The debt to capital ratio remained constant at 0.00 throughout the entire period. This indicates that the absolute growth in debt was negligible relative to the massive expansion of total capital. The resulting ratio confirms that debt constitutes an immaterial portion of the total capital structure, signifying a highly conservative approach to leverage and an extremely low risk of insolvency.
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Debt to Assets
Monolithic Power Systems Inc., debt to assets 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) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Total assets | 3,617,097) | 2,434,353) | 2,058,885) | 1,585,825) | 1,208,491) | |
| Solvency Ratio | ||||||
| Debt to assets1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.02 | 0.04 | 0.04 | 0.03 | — | |
| Analog Devices Inc. | 0.16 | 0.14 | 0.13 | 0.13 | 0.24 | |
| Applied Materials Inc. | 0.18 | 0.18 | 0.20 | 0.21 | 0.24 | |
| Broadcom Inc. | 0.41 | 0.54 | 0.54 | 0.53 | 0.54 | |
| Intel Corp. | 0.25 | 0.26 | 0.23 | 0.23 | — | |
| KLA Corp. | 0.43 | 0.42 | 0.53 | 0.34 | — | |
| Lam Research Corp. | 0.27 | 0.27 | 0.29 | 0.31 | — | |
| Marvell Technology Inc. | 0.20 | 0.20 | 0.21 | 0.11 | — | |
| Micron Technology Inc. | 0.19 | 0.21 | 0.10 | 0.12 | 0.12 | |
| NVIDIA Corp. | 0.15 | 0.27 | 0.25 | 0.24 | — | |
| Qualcomm Inc. | 0.27 | 0.30 | 0.32 | 0.38 | 0.44 | |
| Texas Instruments Inc. | 0.38 | 0.35 | 0.32 | 0.31 | — | |
| Debt to Assets, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.25 | 0.26 | 0.24 | 0.26 | — | |
| Debt to Assets, Industry | ||||||
| Information Technology | 0.25 | 0.26 | 0.26 | 0.29 | — | |
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
Debt to assets = Total debt ÷ Total assets
= 0 ÷ 3,617,097 = 0.00
2 Click competitor name to see calculations.
The financial data indicates a period of consistent and substantial expansion in the company's asset base from 2020 through 2024. Total assets grew from 1,208,491 thousand US dollars at the end of 2020 to 3,617,097 thousand US dollars by the end of 2024, representing a significant overall increase in the scale of the balance sheet.
- Asset Accumulation Trend
- A steady upward trajectory is observed in total assets over the five-year horizon. The growth was particularly pronounced between December 31, 2023, and December 31, 2024, during which assets increased by approximately 48%.
- Solvency Metric Analysis
- The determination of the debt to assets ratio is precluded by the absence of total debt figures for the reported periods. Because these liability values are not provided, the leverage position and the specific impact of debt on the asset structure cannot be quantitatively analyzed.
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Debt to Assets (including Operating Lease Liability)
Monolithic Power Systems Inc., debt to assets (including operating lease liability) 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) | ||||||
| Total debt | —) | —) | —) | —) | —) | |
| Operating lease liabilities (included in Other accrued liabilities) | 2,819) | 2,303) | 2,133) | 2,539) | 1,406) | |
| Long-term operating lease liabilities | 12,974) | 5,565) | 1,664) | 3,268) | 1,693) | |
| Total debt (including operating lease liability) | 15,793) | 7,868) | 3,797) | 5,807) | 3,099) | |
| Total assets | 3,617,097) | 2,434,353) | 2,058,885) | 1,585,825) | 1,208,491) | |
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | |
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | 0.03 | 0.05 | 0.04 | 0.06 | — | |
| Analog Devices Inc. | 0.17 | 0.15 | 0.14 | 0.14 | 0.25 | |
| Applied Materials Inc. | 0.19 | 0.20 | 0.22 | 0.22 | 0.26 | |
| Broadcom Inc. | 0.42 | 0.54 | 0.55 | 0.53 | 0.55 | |
| Intel Corp. | 0.26 | 0.26 | 0.23 | 0.23 | — | |
| KLA Corp. | 0.44 | 0.43 | 0.54 | 0.35 | — | |
| Lam Research Corp. | 0.28 | 0.28 | 0.30 | 0.33 | — | |
| Marvell Technology Inc. | 0.21 | 0.21 | 0.21 | 0.12 | — | |
| Micron Technology Inc. | 0.20 | 0.22 | 0.11 | 0.12 | 0.13 | |
| NVIDIA Corp. | 0.17 | 0.29 | 0.27 | 0.27 | — | |
| Qualcomm Inc. | 0.28 | 0.31 | 0.33 | 0.40 | 0.46 | |
| Texas Instruments Inc. | 0.40 | 0.36 | 0.34 | 0.33 | — | |
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | 0.26 | 0.27 | 0.25 | 0.27 | — | |
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | 0.28 | 0.28 | 0.29 | 0.31 | — | |
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
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 15,793 ÷ 3,617,097 = 0.00
2 Click competitor name to see calculations.
The company maintains an exceptionally low leverage profile, characterized by substantial asset growth that significantly outpaces the incremental increase in total debt obligations.
- Total Debt Trends
- Total debt, inclusive of operating lease liabilities, exhibited an overall upward trajectory from 2020 to 2024. Liabilities rose from 3,099 thousand USD in 2020 to 15,793 thousand USD in 2024. While a temporary contraction was observed in 2022, where debt decreased to 3,797 thousand USD, the subsequent years saw an acceleration in borrowing, with the most significant increase occurring between 2023 and 2024.
- Asset Expansion
- Total assets demonstrated consistent and aggressive growth over the analyzed period. The asset base expanded from 1,208,491 thousand USD in 2020 to 3,617,097 thousand USD in 2024. This steady upward trend indicates a significant scaling of the company's resource base, nearly tripling in size over five years.
- Debt to Assets Ratio
- The debt to assets ratio remained at 0.00 throughout the entire period. This suggests that the scale of total debt is negligible relative to the magnitude of total assets. Despite the nominal increase in liabilities, the company's solvency position remains extremely strong, reflecting a strategy of minimal reliance on external debt to finance its asset growth.
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Financial Leverage
Monolithic Power Systems Inc., financial leverage 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) | ||||||
| Total assets | 3,617,097) | 2,434,353) | 2,058,885) | 1,585,825) | 1,208,491) | |
| Stockholders’ equity | 3,145,767) | 2,049,939) | 1,668,602) | 1,243,985) | 966,587) | |
| Solvency Ratio | ||||||
| Financial leverage1 | 1.15 | 1.19 | 1.23 | 1.27 | 1.25 | |
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 1.20 | 1.21 | 1.23 | 1.66 | — | |
| Analog Devices Inc. | 1.37 | 1.37 | 1.38 | 1.38 | 1.79 | |
| Applied Materials Inc. | 1.81 | 1.88 | 2.19 | 2.11 | 2.11 | |
| Broadcom Inc. | 2.45 | 3.04 | 3.23 | 3.03 | 3.18 | |
| Intel Corp. | 1.98 | 1.81 | 1.80 | 1.77 | — | |
| KLA Corp. | 4.58 | 4.82 | 8.99 | 3.04 | — | |
| Lam Research Corp. | 2.20 | 2.29 | 2.74 | 2.64 | — | |
| Marvell Technology Inc. | 1.43 | 1.44 | 1.41 | 1.28 | — | |
| Micron Technology Inc. | 1.54 | 1.46 | 1.33 | 1.34 | 1.38 | |
| NVIDIA Corp. | 1.53 | 1.86 | 1.66 | 1.70 | — | |
| Qualcomm Inc. | 2.10 | 2.37 | 2.72 | 4.14 | 5.86 | |
| Texas Instruments Inc. | 2.10 | 1.91 | 1.87 | 1.85 | — | |
| Financial Leverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 1.82 | 1.78 | 1.77 | 1.87 | — | |
| Financial Leverage, Industry | ||||||
| Information Technology | 2.44 | 2.53 | 2.65 | 2.87 | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 3,617,097 ÷ 3,145,767 = 1.15
2 Click competitor name to see calculations.
A consistent expansion of the balance sheet is evident between December 31, 2020, and December 31, 2024, characterized by substantial growth in both total assets and stockholders' equity.
- Asset and Equity Expansion
- Total assets increased from 1,208,491 thousand US$ in 2020 to 3,617,097 thousand US$ in 2024. During this same period, stockholders' equity rose from 966,587 thousand US$ to 3,145,767 thousand US$. The magnitude of this growth indicates a significant increase in the company's resource base, with equity growth closely tracking asset growth.
- Financial Leverage Trajectory
- The financial leverage ratio remained relatively stable in the early part of the period, moving from 1.25 in 2020 to a peak of 1.27 in 2021. Subsequently, a consistent downward trend is observed over the following three years, with the ratio decreasing to 1.23 in 2022, 1.19 in 2023, and reaching 1.15 by December 31, 2024.
- Solvency and Risk Interpretation
- The progressive decline in the financial leverage ratio indicates a reduced reliance on debt to finance the growth of total assets. This trend suggests a strengthening of the solvency position, as a larger proportion of assets are funded by equity. The resulting capital structure reflects a lower financial risk profile and an increase in financial autonomy as of the end of the 2024 fiscal year.
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Interest Coverage
Monolithic Power Systems Inc., interest coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | 1,786,700) | 427,374) | 437,672) | 242,023) | 164,375) | |
| Add: Income tax expense | (1,213,788) | 78,467) | 87,265) | 30,196) | 4,967) | |
| Add: Interest expense | —) | —) | —) | —) | —) | |
| Earnings before interest and tax (EBIT) | 572,912) | 505,841) | 524,937) | 272,219) | 169,342) | |
| Solvency Ratio | ||||||
| Interest coverage1 | — | — | — | — | — | |
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 22.98 | 5.79 | 14.61 | 109.09 | — | |
| Analog Devices Inc. | 6.52 | 14.63 | 16.46 | 8.19 | 7.79 | |
| Applied Materials Inc. | 34.00 | 33.42 | 34.33 | 29.69 | 18.36 | |
| Broadcom Inc. | 3.51 | 10.31 | 8.16 | 4.59 | 2.37 | |
| Intel Corp. | -9.84 | 1.87 | 16.66 | 37.35 | — | |
| KLA Corp. | 11.25 | 13.76 | 22.76 | 16.00 | — | |
| Lam Research Corp. | 24.54 | 28.40 | 29.11 | 21.95 | — | |
| Marvell Technology Inc. | -2.58 | 1.50 | -2.47 | -3.65 | — | |
| Micron Technology Inc. | 3.19 | -13.58 | 51.66 | 35.18 | 16.41 | |
| NVIDIA Corp. | 132.59 | 16.96 | 43.12 | 24.96 | — | |
| Qualcomm Inc. | 15.83 | 11.72 | 31.61 | 19.38 | 10.50 | |
| Texas Instruments Inc. | 11.73 | 22.01 | 47.88 | 49.47 | — | |
| Interest Coverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 9.15 | 10.17 | 20.45 | 18.07 | — | |
| Interest Coverage, Industry | ||||||
| Information Technology | 19.15 | 17.37 | 22.18 | 19.66 | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 572,912 ÷ 0 = —
2 Click competitor name to see calculations.
The analysis of solvency indicators focuses on the operational capacity to meet financial obligations. A strong upward trajectory in operating profitability is evident over the five-year period ending December 31, 2024.
- Earnings Before Interest and Tax (EBIT) Trend
- A consistent growth pattern is observed in EBIT, which rose from US$ 169,342 thousand in 2020 to US$ 572,912 thousand in 2024. A significant increase occurred between 2021 and 2022, where earnings nearly doubled. Despite a slight contraction in 2023, profitability recovered in 2024 to reach its highest point in the analyzed period.
- Interest Coverage Evaluation
- The interest coverage ratio cannot be formally computed due to the absence of reported interest expenses. However, the substantial growth in EBIT suggests a robust ability to service potential debt obligations, reflecting a strong operational foundation for solvency.
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Fixed Charge Coverage
Monolithic Power Systems Inc., fixed charge coverage 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) | ||||||
| Net income | 1,786,700) | 427,374) | 437,672) | 242,023) | 164,375) | |
| Add: Income tax expense | (1,213,788) | 78,467) | 87,265) | 30,196) | 4,967) | |
| Add: Interest expense | —) | —) | —) | —) | —) | |
| Earnings before interest and tax (EBIT) | 572,912) | 505,841) | 524,937) | 272,219) | 169,342) | |
| Add: Operating lease costs | 3,903) | 3,113) | 2,704) | 2,454) | 1,488) | |
| Earnings before fixed charges and tax | 576,815) | 508,954) | 527,641) | 274,673) | 170,830) | |
| Interest expense | —) | —) | —) | —) | —) | |
| Operating lease costs | 3,903) | 3,113) | 2,704) | 2,454) | 1,488) | |
| Fixed charges | 3,903) | 3,113) | 2,704) | 2,454) | 1,488) | |
| Solvency Ratio | ||||||
| Fixed charge coverage1 | 147.79 | 163.49 | 195.13 | 111.93 | 114.81 | |
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | 9.46 | 3.18 | 6.82 | 36.00 | — | |
| Analog Devices Inc. | 5.55 | 11.89 | 12.87 | 6.64 | 6.48 | |
| Applied Materials Inc. | 34.00 | 23.69 | 24.67 | 22.50 | 14.48 | |
| Broadcom Inc. | 3.40 | 9.81 | 6.55 | 3.70 | 1.92 | |
| Intel Corp. | -7.74 | 1.59 | 7.34 | 16.56 | — | |
| KLA Corp. | 9.72 | 12.19 | 18.72 | 13.03 | — | |
| Lam Research Corp. | 17.23 | 20.49 | 21.44 | 17.80 | — | |
| Marvell Technology Inc. | -1.77 | 1.39 | -1.40 | -1.75 | — | |
| Micron Technology Inc. | 2.75 | -9.77 | 31.49 | 22.49 | 11.10 | |
| NVIDIA Corp. | 65.29 | 10.19 | 25.61 | 14.40 | — | |
| Qualcomm Inc. | 12.73 | 9.29 | 22.52 | 14.48 | 8.30 | |
| Texas Instruments Inc. | 10.20 | 18.41 | 36.70 | 36.25 | — | |
| Fixed Charge Coverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | 7.89 | 8.12 | 13.92 | 12.49 | — | |
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | 12.24 | 11.19 | 13.23 | 12.08 | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 576,815 ÷ 3,903 = 147.79
2 Click competitor name to see calculations.
The company demonstrates an exceptionally strong solvency position over the five-year period ending December 31, 2024. While there is a consistent upward trend in fixed obligations, the substantial growth in earnings before fixed charges and tax has ensured that the organization maintains a highly conservative cushion to meet its financial commitments.
- Earnings Before Fixed Charges and Tax
- A significant growth trajectory is observed in earnings, rising from 170.83 million US dollars in 2020 to 576.82 million US dollars in 2024. Although a slight contraction occurred in 2023, the overall trend indicates a robust expansion of operating profitability, with the 2024 figures representing a 237% increase over the 2020 baseline.
- Fixed Charges
- Fixed charges have exhibited a steady and uninterrupted increase throughout the analyzed period. Obligations grew from 1.49 million US dollars in 2020 to 3.90 million US dollars in 2024. This consistent rise suggests a gradual increase in the company's fixed financial commitments.
- Fixed Charge Coverage Ratio
- The coverage ratio remains at an exceptionally high level, far exceeding standard solvency benchmarks. The ratio peaked in 2022 at 195.13, driven by a sharp surge in earnings. A downward trend followed in 2023 and 2024, with the ratio settling at 147.79 by the end of 2024. This recent decline is attributable to fixed charges increasing at a faster relative pace than earnings during the final two years of the period. Despite this moderation, the ratio indicates that earnings are more than 147 times the amount of fixed charges, reflecting negligible risk regarding the company's ability to service its fixed debt and obligations.
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