Monolithic Power Systems Inc (MPWR)

Operating return on assets (Operating ROA)

		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
Total assets	US$ in thousands	3,617,100	2,854,740	2,648,130	2,578,700	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
Operating ROA		14.91%	17.01%	17.26%	17.56%	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%

December 31, 2024 calculation

Operating ROA = Operating income (ttm) ÷ Total assets
= $539,358K ÷ $3,617,100K
= 14.91%

Monolithic Power Systems Inc's operating return on assets (ROA) has shown a generally positive trend over the reported periods. The ROA increased from 11.26% as of March 31, 2020, to a peak of 25.59% by December 31, 2022, indicating improved operational efficiency in utilizing the company's assets to generate operating income.

However, the operating ROA experienced a slight decline in the subsequent quarters, dropping to 14.91% by December 31, 2024. This could suggest potential challenges in maintaining the same level of profitability relative to the assets employed in the business during the later periods.

Overall, while Monolithic Power Systems Inc has demonstrated strong operating ROA performance during most of the analyzed quarters, investors and stakeholders may want to monitor any fluctuations in the ratio to assess the company's ability to efficiently generate profits from its assets over time.