Monolithic Power Systems Inc (MPWR)

Pretax margin

		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
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	505,841	527,051	541,033	558,961	524,888	466,096	392,229	319,092	272,265	234,744	219,247	188,755	169,354	158,337	128,153	120,044	123,456	126,238	121,063	118,482
Revenue (ttm)	US$ in thousands	1,821,072	1,827,072	1,847,623	1,867,499	1,794,148	1,670,640	1,498,744	1,331,057	1,207,798	1,104,337	1,040,237	933,129	844,452	778,147	687,538	642,692	630,411	623,648	594,596	582,383
Pretax margin		27.78%	28.85%	29.28%	29.93%	29.26%	27.90%	26.17%	23.97%	22.54%	21.26%	21.08%	20.23%	20.05%	20.35%	18.64%	18.68%	19.58%	20.24%	20.36%	20.34%

December 31, 2023 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $505,841K ÷ $1,821,072K
= 27.78%

Monolithic Power System Inc's pretax margin has shown a generally upward trend over the past eight quarters, indicating improving profitability before taxes. The company's pretax margin ranged from 23.97% to 29.93% during this period.

In the latest quarter, Q4 2023, the pretax margin was 27.78%, slightly lower than the previous quarter's 28.85%. Despite this slight decrease, the company has consistently maintained a strong pretax margin above 25%, demonstrating efficient cost management and revenue generation before taxes.

While there may be some fluctuations in pretax margin from quarter to quarter, Monolithic Power System Inc's overall trend suggests a healthy financial performance in terms of profitability before tax. The company's ability to sustain and improve its pretax margin reflects effective management of expenses and revenue growth strategies.