Monolithic Power Systems Inc (MPWR)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	115,783	114,915	109,593	105,268
Total assets	US$ in thousands	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	956,375	916,135	848,209	793,432
ROA		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%	12.11%	12.54%	12.92%	13.27%

December 31, 2023 calculation

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

Monolithic Power System Inc's return on assets (ROA) has shown a generally positive trend over the past eight quarters, indicating the company's ability to generate profits relative to its total assets. ROA has ranged from 16.11% in Q1 2022 to a high of 21.26% in Q4 2022. In the most recent quarter, Q4 2023, the ROA decreased slightly to 17.56% compared to the previous quarter's 19.31%. Overall, the company has maintained ROA above 16% consistently, suggesting efficient utilization of assets to generate earnings. A consistently strong ROA can be indicative of effective asset management and operational efficiency within the company. However, monitoring future trends in ROA will be crucial for assessing the company's continued financial health and performance.