Monolithic Power Systems, Inc. MPWR

1,439.50 78.53 5.77% as of 2 Oct
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 zoneabove 2.99above 2.60
Grey zone1.81–2.991.10–2.60
Distress zonebelow 1.81below 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

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

The full definition of Altman Z-score →

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