Monolithic Power Systems Inc (MPWR)

Net profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,786,700	427,374	437,672	242,023	164,375
Revenue	US$ in thousands	2,207,100	1,821,070	1,794,150	1,207,800	844,452
Net profit margin		80.95%	23.47%	24.39%	20.04%	19.47%

December 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $1,786,700K ÷ $2,207,100K
= 80.95%

The net profit margin of Monolithic Power Systems Inc has shown a positive trend over the past five years, increasing from 19.47% in December 2020 to 80.95% in December 2024. The company's ability to generate profits from its total revenue has significantly improved during this period, indicating efficient cost management and strong operational performance. The sharp increase in net profit margin in 2024 suggests a potentially exceptional financial performance year for the company. It is important to further analyze the underlying factors contributing to this surge in profitability to assess the sustainability of this impressive growth in net profit margin.