Monolithic Power Systems Inc (MPWR)

Return on assets (ROA)

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net income	US$ in thousands	1,786,700	427,374	437,672	242,023	164,375
Total assets	US$ in thousands	3,617,100	2,434,350	2,058,880	1,585,820	1,208,490
ROA		49.40%	17.56%	21.26%	15.26%	13.60%

December 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,786,700K ÷ $3,617,100K
= 49.40%

Monolithic Power Systems Inc's return on assets (ROA) has demonstrated a generally positive trend over the past five years. From 2020 to 2024, the company's ROA has increased significantly, indicating an improvement in its ability to generate profits from its assets.

In 2020, the ROA stood at 13.60%, which then increased to 15.26% in 2021, showing a steady growth trajectory. The company experienced a notable jump in ROA to 21.26% by the end of 2022, signifying a substantial increase in efficiency in utilizing its assets to generate earnings.

Although there was a slight decline in ROA to 17.56% by the end of 2023, the company bounced back strongly in 2024 with a remarkable ROA of 49.40%. This exceptional performance suggests that Monolithic Power Systems Inc has been effectively utilizing its assets to generate profits and create value for its shareholders.

Overall, the upward trend in ROA reflects the company's efficient management of its assets and indicates a positive outlook for its financial performance in the coming years.