Monolithic Power Systems Inc (MPWR)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	1,786,697	434,242	410,975	410,113	427,374	449,559	452,733	467,908	437,672	391,253	335,686	276,176	242,023	212,239	199,035	174,033	164,376	153,925	127,887	123,901
Total assets	US$ in thousands	3,617,100	2,854,740	2,648,130	2,578,700	2,434,350	2,328,090	2,220,620	2,226,650	2,058,880	1,931,220	1,785,690	1,713,980	1,585,820	1,495,900	1,372,990	1,308,190	1,208,490	1,161,290	1,071,160	1,007,500
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%

December 31, 2024 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,786,697K ÷ $3,617,100K
= 49.40%

In analyzing Monolithic Power Systems Inc's Return on Assets (ROA) over the specified period, the trend demonstrates a consistent improvement in the company's efficiency in generating profits relative to its total assets.

The ROA increased steadily from 12.30% as of March 31, 2020, reaching its peak at 49.40% by December 31, 2024. The company experienced substantial growth in profitability relative to its asset base during this period.

The ROA fluctuations reflect Monolithic Power Systems Inc's ability to effectively utilize its assets to generate earnings. Generally, higher ROA indicates that the company is utilizing its assets efficiently to generate profits, thus enhancing shareholder value.

It is crucial to note the significant spike in ROA to 49.40% by December 31, 2024. Such a substantial increase could be triggered by various factors, including improved operational efficiency, asset optimization, or other one-time events that significantly impacted profitability.

Overall, the consistently improving trend in Monolithic Power Systems Inc's ROA suggests that the company has been successful in effectively managing its assets to drive profitability, which is a positive indicator of its operational performance and financial health.