Monolithic Power Systems Inc (MPWR)

Operating profit margin

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Operating income	US$ in thousands	539,358	481,736	526,785	262,417	158,882
Revenue	US$ in thousands	2,207,100	1,821,070	1,794,150	1,207,800	844,452
Operating profit margin		24.44%	26.45%	29.36%	21.73%	18.81%

December 31, 2024 calculation

Operating profit margin = Operating income ÷ Revenue
= $539,358K ÷ $2,207,100K
= 24.44%

Monolithic Power Systems Inc has shown a steady improvement in its operating profit margin over the years. From December 31, 2020, where the operating profit margin was 18.81%, the company has managed to consistently increase this metric to 21.73% by December 31, 2021, 29.36% by December 31, 2022, and 26.45% by December 31, 2023. However, there was a slight decrease to 24.44% by December 31, 2024.

This upward trend in operating profit margin signifies that Monolithic Power Systems Inc has been able to effectively control its operating expenses relative to its revenue, resulting in a higher percentage of each revenue dollar translating into operating profit. It indicates the company's efficiency in managing its costs and improving profitability.

Despite the slight dip in 2024, the overall trajectory of Monolithic Power Systems Inc's operating profit margin has been positive, demonstrating a solid financial performance and management's ability to optimize operational efficiency.