The Short Answer
Monolithic Power Systems (MPWR) is generally halal under this screen. Power-management semiconductors are broadly permissible, and the March 2026 filing reports no conventional debt balance. The filing-backed ratios are 0.00% debt/assets, 30.73% liquidity/assets, 30.68% receivables-plus-cash/assets and 0.99% gross interest income/revenue. The current filing also says prior 2024 audited and 2025 quarterly statements should no longer be relied upon because of an unintentional error, so this page uses the current filing as its evidence base. This is a screening judgment, not a fatwa or personalized investment advice.
Current quantitative Sharia screen
Based on 10-Q figures for the period ended 2026-03-31; calculated 2026-07-13.
0 / 4,448.866
1,367.109 / 4,448.866
1,365.068 / 4,448.866
7.941 / 804.185
- Financial
- Pass
- Overall
- Incomplete
Debt is 0.00%, cash plus identifiable short-term investments are 30.73%, receivables plus cash are 30.68% and gross disclosed interest income is 0.99%; the reported ratios are below the examined FTSE limits, but downstream business-use disclosure remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt, identifiable liquidity, receivables plus cash and disclosed interest income are below the examined MSCI total-assets limits. This is not an index-membership claim; final-customer and downstream-use classification remains incomplete.
- Financial
- Pass
- Overall
- Incomplete
Debt is 0.00% and identifiable conventional liquidity is 30.73%, below the examined Malaysia SAC financial limits. This is a contextual calculation, not an official classification of a U.S.-listed security.
- Financial
- Not calculated
- Overall
- Not calculated
A properly licensed and reproducible historical market-cap series is not stored, so no unsupported market-cap percentage is substituted for the filing-backed asset-based calculation.
Business-activity disclosure
Monolithic Power Systems designs and sells analog and mixed-signal power-management integrated circuits, power modules and related products across enterprise data, storage and computing, automotive, communications, consumer and industrial markets. Semiconductor power-management technology is broadly permissible, but the filing does not allocate downstream end uses into a school-specific prohibited-revenue numerator.
Limitation: MPS reports end-market revenue and sells primarily through distributors and value-added resellers; it does not identify every final customer, application or downstream use. A universal gaming, defense, surveillance or other prohibited percentage cannot be inferred from the filing.
Purification
MPS discloses $7.941 million of interest income, or 0.99% of quarterly revenue, but does not prescribe a scholar-approved purification percentage. Downstream product-use classification remains incomplete, so no fixed prescription is asserted.
Inputs, assumptions and primary sources
- Inputs use Monolithic Power Systems' March 31, 2026 Form 10-Q; amounts are USD millions after converting the filing's thousands presentation.
- The 2026 Form 10-Q is the current evidence base. The filing states that the Audit Committee determined prior 2024 audited and 2025 quarterly statements should no longer be relied upon because of an unintentional error; this record does not reuse prior-period values from those filings.
- No conventional debt balance is reported on the March 31, 2026 balance sheet. Total liabilities include tax, compensation and other operating liabilities; those are not silently treated as interest-bearing debt.
- Cash uses $1,062.930 million of cash and cash equivalents. Identifiable interest-bearing securities use $304.179 million of short-term investments, primarily certificates of deposit; a further $0.049 million investment within other long-term assets is excluded from the conservative short-term proxy.
- Receivables use $302.138 million of accounts receivable, net. Inventories, deferred tax assets and other current or long-term assets are excluded.
- Revenue was $804.185 million. The filing separately discloses $7.941 million of interest income and $6.030 million of total other income, net; the gross interest-income line is used as a conservative disclosed-income numerator, or 0.99% of revenue.
- Revenue by end market was enterprise data 32.7%, storage and computing 21.7%, automotive 18.9%, communications 13.9%, consumer 6.8% and industrial 6.0%. The filing does not provide a universal prohibited-revenue numerator for downstream end uses.
This is a reproducible financial screen, not a fatwa. A failed total-assets screen can coexist with a pass under a market-cap methodology. ZakatInvest keeps the qualitative assessment separate so numerical thresholds do not erase material context.
This is a reproducible ZakatInvest calculation from Monolithic Power Systems' first-quarter 2026 Form 10-Q for the period ended March 31, 2026. It separates reported financial inputs from school-dependent qualitative conclusions and does not claim an official third-party index classification.
Current Quantitative Screen (March 31, 2026)
- Debt / assets: 0.00% — no conventional debt balance is reported on the balance sheet
- Cash plus identifiable short-term investments / assets: 30.73% — $1,062.930 million of cash plus $304.179 million of short-term investments
- Receivables + cash / assets: 30.68% — $302.138 million of accounts receivable plus cash
- Quarterly revenue: $804.185 million — enterprise data 32.7%, storage and computing 21.7%, automotive 18.9%, communications 13.9%, consumer 6.8% and industrial 6.0%
- Gross interest income / revenue: 0.99% — $7.941 million of disclosed interest income
- Market-cap denominator methods: Not calculated because a licensed, reproducible historical market-cap series is not stored
Debt, liquidity, receivables-plus-cash and disclosed interest income are below the examined asset-based limits. Final-customer and downstream-use classification remains qualitative because MPS sells primarily through distributors and value-added resellers.
Monolithic Power's Business Activity
Monolithic Power designs and sells analog and mixed-signal power-management integrated circuits, power modules and related products. Its end markets include enterprise data and AI servers, storage and computing, automotive, communications, consumer electronics and industrial systems.
Power-management chips are general-purpose industrial technology and are broadly permissible. Enterprise-data revenue was 32.7% of first-quarter revenue and grew 97.7% year over year, primarily from AI and server power solutions. MPS does not identify every final customer or downstream application, so gaming, defense, surveillance and other end-use questions cannot be converted into one universal prohibited-revenue percentage.
Important Qualitative and Data-Integrity Issues
1. Prior filings were deemed unreliable
The March 2026 10-Q states that the Audit Committee determined the company's 2024 audited statements and 2025 quarterly statements should no longer be relied upon because of an unintentional error. This update does not reuse those prior-period numbers. Future amendments, restatements and corrected comparatives should trigger a fresh screen.
2. Distributor model limits end-use visibility
About 88% of revenue was sold through distribution arrangements in the quarter. The chips are components rather than gaming or defense content, but a distributor model means public filings do not show every final application. Investors who apply a stricter downstream-use approach should ask a qualified adviser how to treat that uncertainty.
3. Liquidity and interest instruments
Cash plus short-term investments were 30.73% of total assets. The filing identifies cash, money-market funds, certificates of deposit and a small auction-rate security position. ZakatInvest uses cash plus short-term investments as the reproducible proxy and does not silently add unrelated assets.
4. Customer, supply-chain and market risks
AI demand, customer concentration, export controls, tariffs, semiconductor supply chains, warranty exposure, geopolitical conditions and the pace of automotive and communications demand are material commercial risks. These are not themselves business-activity prohibitions, but they matter to investment diligence.
5. Interest income and purification
MPS reported $7.941 million of interest income and $6.030 million of total other income, net. The gross interest line is 0.99% of quarterly revenue. ZakatInvest reports it for transparency and does not impose a fixed purification percentage.
How to Read the Result
MPWR passes the examined financial screens with no reported conventional debt, and its principal semiconductor activity is broadly permissible. The main caveat is not a quantitative failure: it is the current filing's prior-filing reliability disclosure and the limited visibility into final downstream applications through distributors.
Bottom Line
Monolithic Power Systems (MPWR) is generally halal under the retained quantitative and qualitative framework. The current filing passes the examined financial ratios, while restatement monitoring and downstream-use diligence remain essential. Investors should consult a qualified Sharia adviser for a school-specific conclusion.
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