Monolithic Power Systems Inc (MPWR)

Return on assets (ROA)

		Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income	US$ in thousands	427,374	437,672	242,023	164,375	108,839
Total assets	US$ in thousands	2,434,350	2,058,880	1,585,820	1,208,490	956,375
ROA		17.56%	21.26%	15.26%	13.60%	11.38%

December 31, 2023 calculation

ROA = Net income ÷ Total assets
= $427,374K ÷ $2,434,350K
= 17.56%

Monolithic Power System Inc has consistently shown a positive performance in terms of Return on Assets (ROA) over the past five years. The ROA for the company has shown an increasing trend from 11.38% in 2019 to 17.56% in 2023. This indicates that the company has been progressively more efficient in generating profits relative to its total assets.

The ROA metrics of 2022 and 2023 are particularly strong, indicating an improvement in the company's ability to generate earnings from its assets. This could suggest that Monolithic Power System Inc has been effectively utilizing its assets to generate profits for its shareholders.

Overall, the increasing trend in ROA reflects positively on the company's operational efficiency and ability to extract value from its asset base. Investors and stakeholders may view this as a sign of the company's solid financial health and effective management of its resources.