Monolithic Power Systems Inc (MPWR)
Profitability ratios
Return on sales
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 55.32% | 56.07% | 58.44% | 56.75% | 55.18% |
| Operating profit margin | 24.44% | 26.45% | 29.36% | 21.73% | 18.81% |
| Pretax margin | 25.96% | 27.78% | 29.26% | 22.54% | 20.05% |
| Net profit margin | 80.95% | 23.47% | 24.39% | 20.04% | 19.47% |
Monolithic Power Systems Inc has shown a generally stable gross profit margin over the past five years, ranging from 55.18% in December 2020 to 58.44% in December 2022, before slightly declining to 55.32% in December 2024. This indicates the company has been able to maintain healthy profitability on its sales after accounting for the cost of goods sold.
The operating profit margin has shown an improving trend, increasing from 18.81% in December 2020 to 29.36% in December 2022, although there was a slight decrease to 24.44% in December 2024. This demonstrates the efficiency of Monolithic Power Systems in managing its operating expenses to generate profits from its core operations.
Similarly, the pretax margin has shown a consistent growth trajectory, rising from 20.05% in December 2020 to 29.26% in December 2022, and then decreasing slightly to 25.96% in December 2024. This indicates the company's ability to generate earnings before considering tax expenses.
The net profit margin has experienced fluctuations over the five-year period, with a significant increase to 80.95% in December 2024 after ranging between 19.47% and 24.39% in the preceding years. This marked improvement in net profitability in 2024 may indicate extraordinary or non-recurring items affecting the bottom line.
Overall, Monolithic Power Systems Inc has demonstrated strong overall profitability, with improvements in operating and pretax margins. However, the notable spike in net profit margin in 2024 warrants further investigation to understand the factors behind such a significant increase.
Return on investment
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 14.91% | 19.79% | 25.59% | 16.55% | 13.15% |
| Return on assets (ROA) | 49.40% | 17.56% | 21.26% | 15.26% | 13.60% |
| Return on total capital | 17.15% | 23.50% | 31.57% | 21.09% | 16.44% |
| Return on equity (ROE) | 56.80% | 20.85% | 26.23% | 19.46% | 17.01% |
Monolithic Power Systems Inc has shown consistent improvement in its Operating ROA over the years, increasing from 13.15% in 2020 to 25.59% in 2022, before dropping slightly to 19.79% in 2023 and 14.91% in 2024. This indicates that the company has been effectively generating profits from its core operations relative to its total assets, with a notable peak in 2022.
Analyzing the ROA, Monolithic Power Systems Inc's performance showcases a similar trend of growth, with a significant surge from 13.60% in 2020 to 49.40% in 2024. This reflects the company's ability to generate higher returns on its total assets over the years, especially highlighted by the substantial increase in 2024.
The Return on Total Capital for Monolithic Power Systems Inc reveals a positive trajectory, escalating from 16.44% in 2020 to 31.57% in 2022 before declining to 17.15% in 2024. This ratio evaluates the company's efficiency in generating profits from both equity and debt capital employed, indicating a period of strong performance, particularly in 2022.
In terms of Return on Equity (ROE), Monolithic Power Systems Inc displays a noteworthy increase from 17.01% in 2020 to 56.80% in 2024, illustrating a substantial rise in profitability relative to shareholder equity. This metric indicates the company's ability to generate higher returns for its shareholders over the years, with a remarkable spike in 2024.
Overall, the profitability ratios of Monolithic Power Systems Inc demonstrate a positive performance trajectory, with fluctuations in certain years but an overall upward trend in generating returns for both assets and equity holders, showcasing efficiency and effectiveness in utilizing capital resources.