Monolithic Power Systems Inc (MPWR)

Operating return on assets (Operating ROA)

		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	Dec 31, 2019	Sep 30, 2019	Mar 31, 2019	Dec 31, 2018
Operating income (ttm)	US$ in thousands	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	115,520	118,319	113,169	113,489
Total assets	US$ in thousands	2,434,350	2,328,090	2,220,620	2,226,650	2,058,880	1,931,220	1,785,690	1,713,980	1,585,820	1,495,900	1,372,990	1,308,190	1,208,490	1,161,290	1,071,160	1,007,500	956,375	916,135	848,209	793,432
Operating ROA		19.79%	21.87%	23.66%	24.92%	25.59%	24.26%	22.05%	18.23%	16.55%	14.96%	15.05%	13.30%	13.15%	12.88%	11.17%	11.26%	12.08%	12.92%	13.34%	14.30%

December 31, 2023 calculation

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

Operating return on assets (Operating ROA) is a key financial ratio that measures a company's ability to generate profits from its assets used in operations. Monolithic Power System Inc's Operating ROA has shown a varying trend over the past eight quarters, ranging from 18.59% in Q1 2022 to a peak of 25.97% in Q4 2022.

The company's Operating ROA has generally been on an upward trajectory from Q1 2022 to Q4 2023, which indicates that Monolithic Power System Inc has been improving in utilizing its assets to generate operating profits. The highest value of Operating ROA was observed in Q1 2023 at 25.21%, suggesting efficient asset management and strong operating performance during that period.

However, the slight decline in Operating ROA from Q1 2023 to Q4 2023 may indicate that the company's profitability from operating activities has decreased or that the efficiency of utilizing its assets has slightly waned. Overall, Monolithic Power System Inc's Operating ROA remains relatively healthy, signaling effective asset utilization to generate operating profits, though there could be room for further improvement in this area.