MPWRNEUTRAL

MPWR Current Ratio Analysis

4.98x

Updated 6h ago·SEC filings & market data

Key Takeaway

The current ratio measures a company's ability to pay short-term obligations with its short-term assets; MPWR's 4.98x means it has $4.98 in current assets for every $1 of current liabilities.

Sector Performance

94th percentile

MPWR

4.98x

Sector Median

1.26x

Sector Avg

2.61x

Prior Period

4.79x(Aug 2026)

↑ Improving

📊

Deep Analysis

The current ratio measures a company's ability to pay short-term obligations with its short-term assets; MPWR's 4.98x means it has $4.98 in current assets for every $1 of current liabilities.

This is far above the sector median of 1.25x, placing the firm in the 95th percentile among peers, indicating unusually strong liquidity. The year-over-year change is not available, but the quarter-over-quarter move is +4.0%, rising from 4.79x to 4.98x. The combination of a very high level and a slight upward trend suggests minimal near-term solvency risk, though it may also imply cash or inventory is sitting idle rather than being invested for growth. This does not contradict the overall NEUTRAL verdict, as strong liquidity is a positive factor but does not by itself signal an attractive or risky investment. The metric supports the neutral stance: it confirms financial stability without providing a clear reason to be bullish or bearish.

Frequently Asked Questions

What does the Current Ratio tell investors about MPWR?

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.

How is the Current Ratio calculated?

Current Ratio is calculated as: Current Assets / Current Liabilities.

Who are MPWR's closest peers by Current Ratio?

The closest peers by Current Ratio include: NWS (1.62x), IR (1.62x), ESTC (1.68x), DXCM (1.73x), GLW (1.81x).

📚

Learn More About Current Ratio

Why Working Capital Management Matters More Than You Think

Working capital is more than current assets minus liabilities. Learn why working capital matters for liquidity, efficiency, and competitive advantage, with real data from AMZN, COST, HD, and XOM.

The Formula

Current Assets / Current Liabilities

Why It Matters

Measures short-term financial health. A ratio above 1.5 is generally healthy; below 1.0 may indicate liquidity stress.