Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Statement of Comprehensive Income
- Balance Sheet: Assets
- Cash Flow Statement
- Common-Size Balance Sheet: Assets
- Analysis of Profitability Ratios
- Capital Asset Pricing Model (CAPM)
- Present Value of Free Cash Flow to Equity (FCFE)
- Debt to Equity since 2005
- Price to Operating Profit (P/OP) since 2005
- Price to Sales (P/S) since 2005
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Solvency Ratios (Summary)
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 analysis of the financial ratios over the period from 2020 to 2024 reveals several key trends regarding the company’s capital structure and financial health.
- Debt Ratios
- The company exhibits an almost negligible level of traditional debt throughout the analyzed period, as indicated by the debt to equity, debt to capital, and debt to assets ratios all recorded at zero or near zero values. Only in 2024 does the debt to equity ratio including operating lease liability show a minimal increase to 0.01, suggesting a very slight reliance on lease liabilities as a form of debt.
- Financial Leverage
- The financial leverage ratio has shown a gradual but consistent decline from 1.25 in 2020 to 1.15 in 2024. This downward trend indicates a decreasing reliance on total liabilities relative to shareholders’ equity, suggesting a strengthening equity base or reduction in liabilities over time.
- Coverage Ratios
- Fixed charge coverage ratios remain very high across the years, starting at 114.81 in 2020 and experiencing some fluctuation but remaining well above 100 throughout the period, with peaks and troughs such as 195.13 in 2022 and a decline to 147.79 in 2024. These figures imply that the company's earnings are more than sufficient to cover its fixed financial obligations comfortably.
In summary, the data indicate minimal leverage and negligible traditional debt usage while maintaining strong capacity to meet fixed financial charges. The company demonstrates prudent financial management with a trend toward lower leverage and sustained high coverage of fixed costs.
Debt Ratios
Coverage Ratios
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 | ||||||
| Solvency Ratio | ||||||
| Debt to equity1 | ||||||
| Benchmarks | ||||||
| Debt to Equity, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Debt to Equity, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Debt to Equity, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the reported periods.
- Stockholders’ Equity
- There is a clear upward trajectory in stockholders’ equity from December 31, 2020, through December 31, 2024. Specifically, the equity increased from approximately $966.6 million in 2020 to about $3.15 billion in 2024. This indicates substantial growth in the company’s net assets over the five-year period, suggesting strengthening financial stability and value accumulation.
- Total Debt and Debt to Equity
- Data for total debt and the debt to equity ratio are not provided for any of the years, which limits the ability to evaluate the company’s leverage or financial risk profile. The absence of this information means that no conclusions can be drawn regarding the company’s reliance on debt financing or its capital structure changes relative to equity.
Debt to Equity (including Operating Lease Liability)
Monolithic Power Systems Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Operating lease liabilities (included in Other accrued liabilities) | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Stockholders’ equity | ||||||
| Solvency Ratio | ||||||
| Debt to equity (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Debt to Equity (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Debt to Equity (including Operating Lease Liability), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt (including operating lease liability)
- The total debt exhibits significant fluctuations over the observed periods. Initially, it increased from 3,099 thousand USD at the end of 2020 to 5,807 thousand USD by the end of 2021. Subsequently, it decreased to 3,797 thousand USD in 2022, representing a notable reduction. However, in 2023, the debt rose again to 7,868 thousand USD and further escalated sharply to 15,793 thousand USD by the end of 2024. This pattern indicates periods of considerable debt accumulation, particularly towards the latter years.
- Stockholders' Equity
- Stockholders’ equity has consistently increased throughout the period under review. It rose from 966,587 thousand USD in 2020 steadily to 1,243,985 thousand USD in 2021, and continued growing to 1,668,602 thousand USD in 2022. The upward trend persisted with equity reaching 2,049,939 thousand USD in 2023 and further expanding substantially to 3,145,767 thousand USD by the end of 2024. This consistent increase suggests strong retained earnings or capital infusion, contributing to the strengthening of the company's financial foundation.
- Debt to Equity Ratio (including operating lease liability)
- The debt to equity ratio remained minimal over the analyzed timeline, starting close to zero from 2020 through 2023, indicating that the company's leverage was very low relative to its equity base. In 2024, the ratio increased slightly to 0.01, which remains a very low level of financial leverage. Despite the rise in total debt, the ratio suggests that the company’s equity growth has outpaced its debt accumulation, maintaining a conservative capital structure.
- Overall Analysis
- The firm’s financial structure demonstrates a dominant reliance on equity capital, with steady equity growth outstripping total debt even during periods of increased borrowing. Although total debt shows volatility and a marked increase in the last two years, the very low debt to equity ratio confirms a strong equity position and low leverage risk. This may indicate a strategic approach to capital management, balancing the use of debt financing while maintaining a robust equity cushion to support growth and operations.
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 | ||||||
| Total capital | ||||||
| Solvency Ratio | ||||||
| Debt to capital1 | ||||||
| Benchmarks | ||||||
| Debt to Capital, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Debt to Capital, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Debt to Capital, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The available financial data provides insight into the capital structure over a five-year period ending December 31, 2024.
- Total Capital
- Total capital exhibits a consistent and significant upward trend from 966,587 thousand USD in 2020 to 3,145,767 thousand USD in 2024. This represents more than a threefold increase over the period, indicating substantial growth in the company's overall capital base.
- Total Debt
- The data for total debt is missing for all periods, which limits the ability to assess trends or analyze the leverage and risk structure directly.
- Debt to Capital Ratio
- This ratio is also unavailable, preventing evaluation of how debt contributes to the company's capital structure or any shifts in financial leverage over time.
Overall, the primary observable pattern is a strong increase in total capital. However, due to the lack of debt-related data, it is not possible to determine whether this growth is driven by equity, debt, or a combination thereof, nor to analyze changes in financial risk or leverage. The trends point to expansion or accumulation of capital resources but further data would be needed to draw comprehensive conclusions about the company's financing strategy or risk profile.
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) | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Stockholders’ equity | ||||||
| Total capital (including operating lease liability) | ||||||
| Solvency Ratio | ||||||
| Debt to capital (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Debt to Capital (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Debt to Capital (including Operating Lease Liability), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals several notable trends in the company's capital structure over the five-year period from December 31, 2020 to December 31, 2024.
- Total debt (including operating lease liability)
-
The total debt shows a fluctuating pattern with an overall increasing trend. Initially, debt rose from 3,099 thousand US dollars at the end of 2020 to 5,807 thousand in 2021, then decreased significantly to 3,797 thousand in 2022. However, from 2022 onward, there was a marked increase, reaching 7,868 thousand in 2023 and further surging to 15,793 thousand by the end of 2024. This indicates a heightened reliance on debt financing in the most recent years, effectively more than quadrupling from 2022 to 2024.
- Total capital (including operating lease liability)
-
Total capital consistently increased year over year, expanding from 969,686 thousand US dollars in 2020 to 3,161,560 thousand in 2024. The increases are substantial and accelerated notably after 2022, with nearly a 54% rise between 2023 and 2024 alone. This demonstrates an overall growth in the company's capital base, reflecting probable asset growth and/or equity financing.
- Debt to capital (including operating lease liability)
-
The ratio for debt to capital is displayed as zero across all years. Given the evident increase in both total debt and total capital, this suggests either a data reporting anomaly or that the ratio is subject to a rounding or classification rule rendering it negligible in the reporting. The trend in absolute values suggests that debt remains a relatively small proportion of total capital despite its increase, implying strong capitalization and conservative leverage policies.
Overall, the company exhibits significant growth in total capital alongside a controlled yet increasing level of debt. The marked rise in debt from 2022 to 2024 suggests a strategic decision to utilize more leverage, possibly to finance expansion or operational investments. However, the sustained growth in total capital further implies that the company maintains a robust financial base, which may support this increased indebtedness without materially impacting financial stability as reflected by the very low or zero reported debt-to-capital ratio.
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 | ||||||
| Solvency Ratio | ||||||
| Debt to assets1 | ||||||
| Benchmarks | ||||||
| Debt to Assets, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Debt to Assets, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Debt to Assets, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the available annual financial data reveals significant developments in asset growth over the observed period.
- Total assets
- The total assets have demonstrated a clear upward trajectory. Starting from approximately $1,208,491 thousand at the end of 2020, the asset base expanded to $1,585,825 thousand by 2021, representing a growth of about 31%. This expansion continued robustly in subsequent years, reaching $2,058,885 thousand by the end of 2022 and $2,434,353 thousand by the end of 2023. The most notable increase occurred between 2023 and 2024, where total assets surged to $3,617,097 thousand, an impressive jump of nearly 48.6%. Overall, this trend indicates a consistent and accelerating increase in total assets, suggesting strong growth and potentially increased investment or acquisition activity.
- Total debt
- There is an absence of data for total debt throughout the analyzed period, preventing an assessment of the company’s leverage or debt management strategy.
- Debt to assets ratio
- No values are provided for the debt to assets ratio, limiting the ability to evaluate the financial risk or capital structure changes. The missing data on this ratio inhibits a full understanding of the company’s solvency and financial leverage.
In summary, the available financial figures show a strong and sustained increase in the total asset base over five years, with particularly rapid growth in the most recent year observed. However, the lack of information on debt and leverage ratios restricts a comprehensive assessment of the company’s overall financial health and risk profile. Additional data would be required to evaluate debt management and financial leverage trends accurately.
Debt to Assets (including Operating Lease Liability)
Monolithic Power Systems Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Total debt | ||||||
| Operating lease liabilities (included in Other accrued liabilities) | ||||||
| Long-term operating lease liabilities | ||||||
| Total debt (including operating lease liability) | ||||||
| Total assets | ||||||
| Solvency Ratio | ||||||
| Debt to assets (including operating lease liability)1 | ||||||
| Benchmarks | ||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Debt to Assets (including Operating Lease Liability), Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Debt to Assets (including Operating Lease Liability), Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
- Total debt (including operating lease liability)
- The total debt demonstrates a fluctuating yet overall increasing pattern across the given years. Starting at 3,099 thousand USD in 2020, it rose to 5,807 thousand USD in 2021, then decreased to 3,797 thousand USD in 2022. This was followed by a significant increase to 7,868 thousand USD in 2023 and further more than doubling to 15,793 thousand USD in 2024. This suggests a pattern of debt accumulation with a temporary reduction in 2022.
- Total assets
- Total assets show a consistent and substantial growth each year. Beginning at 1,208,491 thousand USD in 2020, assets grew to 1,585,825 thousand USD in 2021 and continued to rise to 2,058,885 thousand USD in 2022. The upward trend persisted with assets reaching 2,434,353 thousand USD in 2023 and further expanding sharply to 3,617,097 thousand USD in 2024. This indicates strong asset base growth over the period.
- Debt to assets (including operating lease liability)
- Despite the observed changes in total debt and total assets, the debt to assets ratio is consistently reported as zero throughout the periods. This inconsistency suggests a potential data recording issue or indicates that the reported debt is not significant enough relative to total assets to impact the ratio calculation, which may require further verification.
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 | ||||||
| Stockholders’ equity | ||||||
| Solvency Ratio | ||||||
| Financial leverage1 | ||||||
| Benchmarks | ||||||
| Financial Leverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Financial Leverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Financial Leverage, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Assets
- Total assets have exhibited a consistent upward trend from 2020 through 2024. Beginning at approximately 1.21 billion US dollars in 2020, total assets increased progressively each year, reaching about 3.62 billion US dollars by the end of 2024. This represents a notable growth trajectory and suggests an expansion in the company's asset base over the five-year period.
- Stockholders’ Equity
- Stockholders’ equity has also shown a substantial increase throughout the analyzed years. Starting from approximately 967 million US dollars in 2020, equity rose steadily each year, reaching nearly 3.15 billion US dollars by the end of 2024. This growth in equity aligns with the increase in total assets and reflects an enhancement in the company’s net worth and financial strength over time.
- Financial Leverage
- The financial leverage ratio, defined as total assets divided by stockholders’ equity, has demonstrated a gradual decline over the five years. The ratio decreased from 1.25 in 2020 to 1.15 in 2024, indicating a slight reduction in reliance on debt relative to equity. This trend suggests that the company has been strengthening its equity base relative to its assets, potentially improving its financial stability and lowering financial risk.
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 | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Solvency Ratio | ||||||
| Interest coverage1 | ||||||
| Benchmarks | ||||||
| Interest Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Interest Coverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Interest Coverage, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =
2 Click competitor name to see calculations.
The financial data indicates a notable trend in the earnings before interest and tax (EBIT) over the five-year period from 2020 to 2024. There is a consistent upward trajectory with EBIT increasing substantially from $169,342 thousand in 2020 to $572,912 thousand in 2024. This represents an approximate 3.38-fold increase over the period, highlighting significant growth in operating profitability.
More specifically, the company experienced a considerable jump in EBIT from 2021 to 2022, where the value nearly doubled from $272,219 thousand to $524,937 thousand. After peaking in 2022, there was a slight decline in 2023 to $505,841 thousand, before rebounding to the highest reported EBIT of $572,912 thousand in 2024. This pattern suggests a temporary dip in operating profit margin or operational challenges in 2023, followed by a recovery in 2024.
Regarding interest expense and interest coverage, the data for all periods is missing. Without this information, it is not possible to assess the company’s interest burden or its ability to cover interest expenses from operating earnings. Consequently, the impact of financing costs on overall financial performance cannot be evaluated from the provided information.
In summary, the company’s EBIT has demonstrated strong growth over the analyzed timeframe with only minor fluctuations, underscoring improved operational effectiveness or revenue expansion. However, the absence of interest-related data limits insight into financing structure and leverage effects.
Fixed Charge Coverage
Monolithic Power Systems Inc., fixed charge coverage calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Add: Income tax expense | ||||||
| Add: Interest expense | ||||||
| Earnings before interest and tax (EBIT) | ||||||
| Add: Operating lease costs | ||||||
| Earnings before fixed charges and tax | ||||||
| Interest expense | ||||||
| Operating lease costs | ||||||
| Fixed charges | ||||||
| Solvency Ratio | ||||||
| Fixed charge coverage1 | ||||||
| Benchmarks | ||||||
| Fixed Charge Coverage, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Fixed Charge Coverage, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Fixed Charge Coverage, Industry | ||||||
| Information Technology | ||||||
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
1 2024 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =
2 Click competitor name to see calculations.
- Earnings before fixed charges and tax
- The earnings before fixed charges and tax exhibited a strong upward trend over the analyzed period. Starting at 170,830 thousand US dollars in 2020, the figure increased substantially to 274,673 thousand in 2021. This growth accelerated in 2022, reaching 527,641 thousand, before slightly declining to 508,954 thousand in 2023. In 2024, the earnings recovered and further increased to 576,815 thousand. Overall, this indicates robust operational performance with some volatility between 2022 and 2023 but a general trend of improvement.
- Fixed charges
- Fixed charges showed a consistent increase throughout the period. Beginning at 1,488 thousand US dollars in 2020, the amount rose steadily each year, reaching 2,454 thousand in 2021, 2,704 thousand in 2022, 3,113 thousand in 2023, and 3,903 thousand in 2024. This gradual increase in fixed charges suggests rising costs related to fixed financial obligations such as interest or lease expenses.
- Fixed charge coverage ratio
- The fixed charge coverage ratio remained strong but exhibited a declining trend after peaking in 2022. Starting at a very high ratio of 114.81 in 2020, the coverage slightly decreased to 111.93 in 2021. It then surged to a peak of 195.13 in 2022, reflecting significant earnings growth relative to fixed charges in that year. However, it declined thereafter to 163.49 in 2023 and further to 147.79 in 2024. Despite the decline, these ratios indicate a comfortable ability to cover fixed charges across all years, though the margin of safety diminished slightly following 2022.