Monolithic Power Systems Inc (MPWR)

Gross profit margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Gross profit	US$ in thousands	1,021,120	1,048,550	685,459	465,954	346,325
Revenue	US$ in thousands	1,821,070	1,794,150	1,207,800	844,452	627,921
Gross profit margin		56.07%	58.44%	56.75%	55.18%	55.15%

December 31, 2023 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,021,120K ÷ $1,821,070K
= 56.07%

The gross profit margin of Monolithic Power System Inc has exhibited some fluctuations over the past five years. In 2023, the gross profit margin decreased to 56.07% from 58.44% in 2022, but it remained relatively consistent with the margins reported in 2021 and 2020, which were 56.75% and 55.18% respectively. Comparing these figures with the gross profit margin of 55.15% in 2019, we observe a gradual improvement in profitability over the period. It is important to further investigate the reasons behind the fluctuations to assess the company's operational efficiency and pricing strategies.