Monolithic Power Systems, Inc. MPWR
- Market cap
- $68.5B
- P/E
- 87.7×
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Monolithic Power Systems, Inc. (MPWR) Altman Z-score
Monolithic Power Systems, Inc.'s Altman Z-score for fiscal 2025 is 42.05, in the safe zone (above 2.99).
Altman Z-score, annual
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Annual
| Period | Altman Z-score | Change (points) |
|---|---|---|
| FY2025 | 42.05 | 9.01 |
| FY2024 | 33.03 | (16.57) |
| FY2023 | 49.60 | 21.33 |
| FY2022 | 28.27 | (13.79) |
| FY2021 | 42.06 | (0.84) |
| FY2020 | 42.90 | 15.64 |
| FY2019 | 27.26 | 5.73 |
| FY2018 | 21.52 | (1.95) |
| FY2017 | 23.48 | (3.58) |
| FY2016 | 27.06 | 0.80 |
How fiscal 2025’s score is made up
| Component | This year | Year before | Result | Points |
|---|---|---|---|---|
| Working capital / total assets | 0.43 | — | 0.52 | |
| Retained earnings / total assets | 0.62 | — | 0.87 | |
| EBIT / total assets | 0.17 | — | 0.57 | |
| Market value of equity / total liabilities | 65.70 | — | 39.42 | |
| Sales / total assets | 0.67 | — | 0.67 | |
| Altman Z-score | Safe zone | 42.05 | ||
| Z″ Variant for non-manufacturing and asset-light companies (drops the sales/assets term, uses book equity) | Safe zone | 11.63 | ||
How the Altman Z-score works
Z = 1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets (Altman, 1968). The market value of equity is the close on the last trading day of the fiscal year times weighted basic shares.
Z″ = 6.56 × working capital ÷ total assets + 3.26 × retained earnings ÷ total assets + 6.72 × EBIT ÷ total assets + 1.05 × book equity ÷ total liabilities (Altman, Hartzell and Peck, 1995), the variant for non-manufacturing and asset-light companies.
| Zone | Z | Z″ |
|---|---|---|
| Safe zone | above 2.99 | above 2.60 |
| Grey zone | 1.81–2.99 | 1.10–2.60 |
| Distress zone | below 1.81 | below 1.10 |
Not worked out for banks, insurers and REITs, whose balance sheets the model does not describe, nor when a figure is missing or there is no share price in the week to the fiscal year end.
Altman Z-score against peers
| Company | Altman Z-score |
|---|---|
| ALAB Astera Labs, Inc. compare | 101× |
| CRDO Credo Technology Group Holding Ltd. compare | 82.7× |
| MPWR Monolithic Power Systems, Inc. | 42.0× |
| ON ON Semiconductor Corporation compare | 4.6× |
| STM STMicroelectronics N.V. compare | 3.7× |
| MCHP Microchip Technology Incorporated compare | 3.7× |
| UMC United Microelectronics Corporation compare | 3.3× |
| NXPI NXP Semiconductors N.V. compare | 2.9× |
| ASX ASE Technology Holding Co., Ltd. compare | 2.5× |
What Altman Z-score is
The Altman Z-Score weighs working capital, retained earnings, operating profit, market value and sales against assets and debts to gauge the risk of distress.
1.2 × working capital ÷ total assets + 1.4 × retained earnings ÷ total assets + 3.3 × EBIT ÷ total assets + 0.6 × market value of equity ÷ total liabilities + 1.0 × revenue ÷ total assets
More on MPWR
- Revenue
- Net income
- EPS (diluted)
- EBITDA
- Free cash flow
- Operating cash flow
- Gross margin
- Operating margin
- Net margin
- Free cash flow margin
- P/E ratio
- P/S ratio
- P/B ratio
- Price to free cash flow
- EV/EBITDA
- EV/Sales
- EV/FCF
- Return on equity
- Return on assets
- Return on invested capital
- Debt to equity
- Current ratio
- Total debt
- Shares outstanding
- Book value per share
- Revenue growth
- The full statement