Monolithic Power Systems (NAS:MPWR) Financial Strength

: 10 (As of Jun. 2023)

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Monolithic Power Systems has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Good Sign:

Monolithic Power Systems Inc shows strong financial strength.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

Monolithic Power Systems has no debt. Monolithic Power Systems's debt to revenue ratio for the quarter that ended in Jun. 2023 was 0.00. As of today, Monolithic Power Systems's Altman Z-Score is 37.62.

Competitive Comparison

For the Semiconductors subindustry, Monolithic Power Systems's Financial Strength, along with its competitors' market caps and Financial Strength data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Annual Data Quarterly Data

Monolithic Power Systems Financial Strength Distribution

For the Semiconductors industry and Technology sector, Monolithic Power Systems's Financial Strength distribution charts can be found below:

* The bar in red indicates where Monolithic Power Systems's Financial Strength falls in comparison to its industry or sector. The grey bar indicates the Financial Strength's extreme value range as defined by GuruFocus.

Monolithic Power Systems Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

Monolithic Power Systems's Interest Expense for the months ended in Jun. 2023 was $0 Mil. Its Operating Income for the months ended in Jun. 2023 was $112 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2023 was $0 Mil.

Monolithic Power Systems's Interest Coverage for the quarter that ended in Jun. 2023 is

Monolithic Power Systems had no debt.

The higher the ratio, the stronger the company's financial strength is.

Good Sign:

Monolithic Power Systems Inc has no debt.

2. Debt to revenue ratio. The lower, the better.

Monolithic Power Systems's Debt to Revenue Ratio for the quarter that ended in Jun. 2023 is

Debt to Revenue Ratio	=	Total Debt (Q: Jun. 2023 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	0)	/	1764.512
	=	0.00

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Monolithic Power Systems has a Z-score of 37.62, indicating it is in Safe Zones. This implies the Z-Score is strong.

Good Sign:

Altman Z-score of 37.62 is strong.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Monolithic Power Systems (NAS:MPWR) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

Monolithic Power Systems has the Financial Strength Rank of 10. It shows strong financial strength and is unlikely to fall into distressed situations.

Monolithic Power Systems Financial Strength Related Terms

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Monolithic Power Systems (NAS:MPWR) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Monolithic Power Systems Inc (NAS:MPWR) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

NQG:Germany NQG:Germany

Address

5808 Lake Washington Boulevard NE, Kirkland, WA, USA, 98033

Website

https://www.monolithicpower.com

Monolithic Power Systems is an analog and mixed-signal chipmaker, specializing in power management solutions. The firm's mission is to reduce total energy consumption in end systems, and it serves the computing, automotive, industrial, communications, and consumer end markets. MPS uses a fabless manufacturing model, partnering with third-party chip foundries to host its proprietary BCD process technology.

Executives

Eileen Wynne	director	MONOLITHIC POWER SYSTEMS, 79 GREAT OAKS BLVD, SAN JOSE CA 95117
Eugen J Elmiger	director	BUEELHADE 3A, SEMPACH STADT V8 6204
Victor K Lee	director	C/O LEADIS TECHNOLOGY, 800 W. CALIFORNIA AVENUE, SUITE 200, SUNNYVALE CA 94086
Jeff Zhou	director	6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Carintia Martinez	director	5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033
Theodore Blegen	officer: CFO	5808 LAKE WASHINGTON BLVD NE, KIRKLAND WA 98033
Maurice Sciammas	officer: Sr. V.P.of Sales and Marketing	79 GREAT OAKS BLVD, SAN JOSE CA 95119
Meera Rao	officer: VP of Finance, Corp Controller	1050 ENTERPRISE WAY, SUITE 700, SUNNYVALE CA 94089
Rick Neely	officer: Sr. VP and CFO	6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Paul Ueunten	officer: Sr. V.P. Design Engineering	6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Douglas M Mcburnie	director	233 S. HILLVIEW DRIVE, MILPITAS CA 95035
Smith- Pilkington Karen A	director	343 STATE STREET, ROCHESTER NY 146500211
Adriana Chiocchi	officer: Senior V.P. and CLO	C/O MONOLITHIC POWER SYSTEMS, 6409 GUADALUPE MINES ROAD, SAN JOSE CA 95120
Jones Jim J Iii	director	950 TOWER LANE, SUITE 700, FOSTER CITY CA 94404
Saria Tseng	officer: VP and General Counsel	79 GREAT OAKS BLVD, SAN JOSE CA 95119