Monolithic Power Systems Inc (MPWR)

Gross profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Gross profit	US$ in thousands	1,220,870	1,021,120	1,048,550	685,459	465,954
Revenue	US$ in thousands	2,207,100	1,821,070	1,794,150	1,207,800	844,452
Gross profit margin		55.32%	56.07%	58.44%	56.75%	55.18%

December 31, 2024 calculation

Gross profit margin = Gross profit ÷ Revenue
= $1,220,870K ÷ $2,207,100K
= 55.32%

The gross profit margin of Monolithic Power Systems Inc has shown a generally positive trend over the years, starting at 55.18% as of December 31, 2020, and reaching a peak of 58.44% as of December 31, 2022. This indicates the company's ability to efficiently control production costs relative to its revenue. However, there was a slight dip in the margin to 56.07% as of December 31, 2023, followed by a further decrease to 55.32% as of December 31, 2024. It is essential for the company to closely monitor and manage its cost of goods sold to ensure sustained profitability. Overall, while the margin fluctuated in recent years, Monolithic Power Systems Inc has demonstrated a reasonably strong gross profit margin performance.