Monolithic Power Systems Inc (MPWR)
Pretax margin
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 572,912 | 505,841 | 524,937 | 272,219 | 169,342 |
| Revenue | US$ in thousands | 2,207,100 | 1,821,070 | 1,794,150 | 1,207,800 | 844,452 |
| Pretax margin | 25.96% | 27.78% | 29.26% | 22.54% | 20.05% |
December 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $572,912K ÷ $2,207,100K
= 25.96%
From 2020 to 2024, Monolithic Power Systems Inc has shown a consistent upward trend in its pretax margin, indicating an improvement in its profitability before considering taxes. The pretax margin increased from 20.05% in 2020 to 25.96% in 2024. The company's ability to generate higher pretax profits relative to its total revenue is a positive sign of efficiency and effective cost management.
The steady growth in pretax margin over the years suggests that Monolithic Power Systems Inc has been successful in controlling its operational costs and enhancing its revenue generation strategies. This trend reflects positively on the company's overall financial health and management effectiveness. However, the slight dip in the pretax margin in 2023 followed by a recovery in 2024 could be an area of interest for further investigation to ensure sustained profitability in the future.
Peer comparison
Dec 31, 2024