{
  "docId": "019dd923-622c-750b-8b98-c99fec0ed8aa",
  "docSlug": "1c836eeb374c",
  "documentTitle": "Monolithic Power Systems (MPWR)",
  "authorId": "54_Spruce_Point_Capital",
  "authorName": "Ben Axler",
  "documentKindSlug": "activist-deck",
  "documentKindLabel": "Activist deck",
  "sourceTypeSlug": "short_seller",
  "sourceTypeLabel": "Short seller",
  "presentationDate": "2019-10-09 00:00:00",
  "orientation": "landscape",
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  "pageNumber": 30,
  "pageCount": 95,
  "prevPage": 29,
  "nextPage": 31,
  "slideType": "valuation_table",
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  "density": "dense",
  "nDataPoints": 60,
  "notes": "The slide uses a two-part table structure: a revenue/inventory adjustment model on the left and a peer benchmark comparison on the right.",
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      "kind": "callout",
      "text": "If we assume that MPWR's inventory metrics should be in line with industry peers, and that $245 - $265m of revenue is overstated, it implies ~$93m of inventory is also overstated.",
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      "kind": "metric",
      "text": "inventory turnover: $265m",
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      "kind": "paragraph",
      "text": "As we've already shown: 1) MPWR's Chinese tax filings do not account for ~$262m of revenue, and 2) MPWR's inventory turnover metrics are ballooning and a significant industry outlier despite stable and steady gross margin growth that management touts. If we assume that MPWR's inventory metrics should be in line with industry peers, and that $245 - $265m of revenue is overstated, it implies ~$93m of inventory is also overstated.",
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      "kind": "source-note",
      "text": "Source: Bloomberg. Long-term based on last 30 quarters",
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      "text": "Left table: Adjustment model for sales, COGS, and inventory.",
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      "text": "Right table: Peer benchmark comparison for inventory metrics.",
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      "kind": "title",
      "text": "Mathematical Support For $245 - $265m of Potentially Overstated Sales",
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      "evidence": "Comparison of MPWR metrics against a list of industry peers.",
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      "evidence": "The document then agitates the problem, presenting numerous examples of accounting and disclosure red flags.",
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      "confidence": 0.8,
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      "evidence": "The document presents numerous examples of accounting and disclosure red flags, testing the hypothesis that MPWR's financials are suspect.",
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