Monolithic Power Systems Inc (MPWR)

Operating 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
Operating income (ttm)	US$ in thousands	539,358	485,620	457,158	452,947	481,736	509,059	525,364	554,927	526,785	468,465	393,725	312,465	262,417	223,807	206,655	173,982	158,882	149,614	119,667	113,429
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
Operating profit margin		24.44%	23.81%	24.13%	24.78%	26.45%	27.86%	28.43%	29.71%	29.36%	28.04%	26.27%	23.47%	21.73%	20.27%	19.87%	18.65%	18.81%	19.23%	17.41%	17.65%

December 31, 2024 calculation

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

Monolithic Power Systems Inc's operating profit margin has exhibited a generally positive trend over the periods outlined. The margin increased from 17.65% as of March 31, 2020, to a peak of 29.71% as of March 31, 2023. Following this peak, there was a slight decline in the margin, with fluctuations observed in subsequent quarters.

Despite the fluctuations, the operating profit margin remained above 20% for the majority of the periods, indicating the company's ability to generate earnings from its core operations efficiently. The peak margin of 29.71% in March 31, 2023, suggests strong profitability in that period.

The margin declined from the peak in March 2023 to 24.44% as of December 31, 2024. This decline may warrant further analysis to understand the factors contributing to the decrease in profitability.

Overall, Monolithic Power Systems Inc's operating profit margin demonstrates a solid performance, with fluctuations over time that reflect the company's ability to manage costs and generate profits from its operations. Monitoring these trends can help stakeholders assess the company's operational efficiency and financial health.