Monolithic Power Systems Inc (MPWR)

Gross profit margin

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Gross profit (ttm)	US$ in thousands	1,220,870	1,127,585	1,047,683	1,014,780	1,021,119	1,037,805	1,065,166	1,088,452	1,048,552	974,617	870,026	763,280	685,459	620,459	577,188	515,566	465,954	429,016	379,134	354,547
Revenue (ttm)	US$ in thousands	2,207,100	2,039,447	1,894,195	1,827,892	1,821,072	1,827,072	1,847,623	1,867,499	1,794,148	1,670,640	1,498,744	1,331,057	1,207,798	1,104,337	1,040,237	933,129	844,452	778,147	687,538	642,692
Gross profit margin		55.32%	55.29%	55.31%	55.52%	56.07%	56.80%	57.65%	58.28%	58.44%	58.34%	58.05%	57.34%	56.75%	56.18%	55.49%	55.25%	55.18%	55.13%	55.14%	55.17%

December 31, 2024 calculation

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

Monolithic Power Systems Inc has shown a fluctuating trend in its gross profit margin over the period from March 31, 2020, to December 31, 2024. The company's gross profit margin started at 55.17% in March 2020 and exhibited a slight decline by December 2020 to 55.18%. Subsequently, there was a gradual increase in the gross profit margin, reaching 58.44% by December 31, 2022.

However, from March 31, 2023, the gross profit margin began to decline, with fluctuations observed over subsequent quarters. The lowest point was recorded at 55.31% in June 30, 2024. Overall, the gross profit margin decreased to 55.32% by December 31, 2024.

The fluctuating trend in Monolithic Power Systems Inc's gross profit margin indicates variability in the company's ability to generate profits from its core business operations relative to its cost of goods sold. It is essential for the company to closely monitor and manage its cost structure and pricing strategies to maintain a healthy gross profit margin and ensure sustainable profitability in the long term.