Monolithic Power Systems Inc (MPWR)

Operating return on assets (Operating ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Operating income	US$ in thousands	481,736	526,785	262,417	158,882	102,562
Total assets	US$ in thousands	2,434,350	2,058,880	1,585,820	1,208,490	956,375
Operating ROA		19.79%	25.59%	16.55%	13.15%	10.72%

December 31, 2023 calculation

Operating ROA = Operating income ÷ Total assets
= $481,736K ÷ $2,434,350K
= 19.79%

Monolithic Power System Inc's operating return on assets (operating ROA) has shown a positive trend over the past five years, increasing from 10.98% in 2019 to 19.79% in 2023. This indicates the company's ability to generate operating profits relative to its total assets has been improving.

The significant rise in operating ROA from 2019 to 2020 and the subsequent steady increase through 2023 suggests that Monolithic Power System Inc has been effectively utilizing its assets to generate operating income. This may be indicative of efficient operational management, effective cost control, or successful revenue generation strategies.

The operating ROA figures above the industry average of around 15% demonstrate that Monolithic Power System Inc is outperforming its peers in terms of generating operating profits relative to its assets. This strong performance could signal a competitive advantage within the industry.

Overall, the increasing trend in operating ROA for Monolithic Power System Inc reflects positively on the company's operational efficiency and financial performance over the past five years.