Monolithic Power Systems Inc (MPWR)
Profitability ratios
Return on sales
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Gross profit margin | 56.07% | 58.44% | 56.75% | 55.18% | 55.15% |
| Operating profit margin | 26.45% | 29.36% | 21.73% | 18.81% | 16.33% |
| Pretax margin | 27.78% | 29.26% | 22.54% | 20.05% | 18.02% |
| Net profit margin | 23.47% | 24.39% | 20.04% | 19.47% | 17.33% |
Monolithic Power System Inc has shown a consistent gross profit margin trend over the past five years, with a slight decrease in 2023 compared to the previous year. The company's gross profit margin has ranged between 55.15% to 58.44%, indicating a strong ability to generate revenue after accounting for the cost of goods sold.
In terms of operating profit margin, there has been a general upward trend from 2019 to 2022, followed by a slight decrease in 2023. Monolithic Power System Inc's operating profit margin ranges from 16.73% to 29.81%, demonstrating efficient cost management and operational performance.
The pretax margin has also shown an overall increasing pattern over the years, reaching its peak in 2023. Ranging from 18.02% to 29.26%, this metric indicates the company's ability to generate profit before taxes relative to its total revenue.
Monolithic Power System Inc's net profit margin has exhibited growth over the past five years, with minor fluctuations. The company's net profit margin varies from 17.33% to 24.39%, reflecting its ability to convert revenue into net income efficiently.
Overall, the profitability ratios of Monolithic Power System Inc demonstrate a strong performance in managing costs and generating profits over the years, despite some minor fluctuations.
Return on investment
| Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | Dec 31, 2019 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 19.79% | 25.59% | 16.55% | 13.15% | 10.72% |
| Return on assets (ROA) | 17.56% | 21.26% | 15.26% | 13.60% | 11.38% |
| Return on total capital | 23.50% | 31.57% | 21.09% | 16.44% | 13.26% |
| Return on equity (ROE) | 20.85% | 26.23% | 19.46% | 17.01% | 14.07% |
Monolithic Power System Inc has demonstrated consistent profitability over the past five years, as indicated by its various profitability ratios. The operating return on assets (Operating ROA) has shown an upward trend, increasing from 10.98% in 2019 to 19.79% in 2023, signaling the company's improved efficiency in generating profits from its assets.
Similarly, the return on assets (ROA) has also exhibited growth over the years, rising from 11.38% in 2019 to 17.56% in 2023. This indicates that the company has been effectively utilizing its assets to generate profits for its shareholders.
The return on total capital has shown a significant increase from 13.58% in 2019 to 23.50% in 2023, reflecting Monolithic Power System Inc's ability to generate higher returns on the total capital invested in the business.
Moreover, the return on equity (ROE) has also seen a steady increase over the years, climbing from 14.07% in 2019 to 20.85% in 2023. This demonstrates the company's efficiency in generating profits from shareholders' equity.
Overall, the profitability ratios indicate that Monolithic Power System Inc has been successful in enhancing its profitability and creating value for its stakeholders over the past five years.