Monolithic Power Systems Inc (MPWR)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 55.32% | 55.29% | 55.31% | 55.52% | 56.07% | 56.80% | 57.65% | 58.28% | 58.44% | 58.34% | 58.05% | 57.34% | 56.75% | 56.18% | 55.49% | 55.25% | 55.18% | 55.13% | 55.14% | 55.17% |
| Operating profit margin | 24.44% | 23.81% | 24.13% | 24.78% | 26.45% | 27.86% | 28.43% | 29.71% | 29.36% | 28.04% | 26.27% | 23.47% | 21.73% | 20.27% | 19.87% | 18.65% | 18.81% | 19.23% | 17.41% | 17.65% |
| Pretax margin | 25.96% | 25.64% | 25.68% | 26.33% | 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% |
| Net profit margin | 80.95% | 21.29% | 21.70% | 22.44% | 23.47% | 24.61% | 24.50% | 25.06% | 24.39% | 23.42% | 22.40% | 20.75% | 20.04% | 19.22% | 19.13% | 18.65% | 19.47% | 19.78% | 18.60% | 19.28% |
Monolithic Power Systems Inc has shown consistent improvement in its profitability ratios over the years. The gross profit margin has steadily increased from 55.17% as of March 31, 2020, to 55.32% by December 31, 2024. This indicates the company's ability to efficiently control production costs and generate a higher margin on its products.
Similarly, the operating profit margin has seen fluctuations but generally improved from 17.65% on March 31, 2020, to 24.44% by December 31, 2024. This highlights the company's effectiveness in managing its operating expenses and improving operational efficiency over time.
The pretax margin has also shown a positive trend, increasing from 18.68% on March 31, 2020, to 25.96% by December 31, 2024. This reflects Monolithic Power Systems' ability to generate higher profits before accounting for taxes, indicating strong financial performance and effective tax management strategies.
The net profit margin, although fluctuating, has overall improved from 19.28% on March 31, 2020, to an unusually high 80.95% by December 31, 2024. However, the significant spike in the net profit margin in the last quarter of 2024 warrants further investigation to ensure the data accuracy. Overall, the positive trajectory of the profitability ratios signals Monolithic Power Systems' sound financial health and efficient management of its operations.
Return on investment
| 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 return on assets (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% |
| Return on assets (ROA) | 49.40% | 15.21% | 15.52% | 15.90% | 17.56% | 19.31% | 20.39% | 21.01% | 21.26% | 20.26% | 18.80% | 16.11% | 15.26% | 14.19% | 14.50% | 13.30% | 13.60% | 13.25% | 11.94% | 12.30% |
| Return on total capital | 17.15% | 20.65% | 20.82% | 21.43% | 23.50% | 26.17% | 28.57% | 31.24% | 31.57% | 30.60% | 27.67% | 23.56% | 21.09% | 19.25% | 19.01% | 17.03% | 16.44% | 16.36% | 14.10% | 13.95% |
| Return on equity (ROE) | 56.80% | 18.47% | 18.72% | 19.40% | 20.85% | 23.12% | 24.62% | 26.34% | 26.23% | 25.56% | 23.59% | 20.83% | 19.46% | 18.25% | 18.30% | 17.04% | 17.01% | 16.83% | 15.06% | 15.24% |
Monolithic Power Systems Inc has demonstrated strong profitability over the analyzed period, as indicated by the upward trend in its profitability ratios. The Operating Return on Assets (Operating ROA) has shown a consistent improvement, starting at 11.26% in March 2020 and peaking at 25.59% in December 2022. This indicates the company's ability to generate earnings from its operations relative to its assets.
Similarly, the Return on Assets (ROA) also exhibited a positive trajectory, reaching a peak of 49.40% in December 2024. This metric reflects the company's efficiency in utilizing its assets to generate profits.
Moreover, the Return on Total Capital and Return on Equity (ROE) ratios have followed a similar pattern of growth, indicating the company's effective use of both debt and equity to generate returns for its shareholders. The ROE reached a high of 56.80% in December 2024, showcasing Monolithic Power Systems Inc's ability to generate substantial profits relative to shareholder equity.
Overall, the consistent improvement in profitability ratios underscores Monolithic Power Systems Inc's strong operational performance and effective utilization of its resources to drive profitability and create value for its stakeholders.
See also:
Monolithic Power Systems Inc Profitability Ratios (Quarterly Data)