Monolithic Power Systems Inc (MPWR)

Pretax margin

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Earnings before tax but after interest (EBT)	US$ in thousands	505,841	524,937	272,219	169,342	113,120
Revenue	US$ in thousands	1,821,070	1,794,150	1,207,800	844,452	627,921
Pretax margin		27.78%	29.26%	22.54%	20.05%	18.02%

December 31, 2023 calculation

Pretax margin = EBT ÷ Revenue
= $505,841K ÷ $1,821,070K
= 27.78%

The pretax margin of Monolithic Power System Inc has shown a generally positive trend over the past five years, increasing from 18.02% in 2019 to 27.78% in 2023. This indicates that the company has been able to effectively control its operating expenses relative to its revenue, resulting in higher profitability before taxes. The growth in pretax margin suggests improving operational efficiency and potentially increasing pricing power. Overall, the upward trajectory of the pretax margin reflects positively on the financial performance and management of Monolithic Power System Inc.