Monolithic Power Systems Inc (MPWR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,145,770	2,049,940	1,668,600	1,243,980	966,587
ROE		56.80%	20.85%	26.23%	19.46%	17.01%

December 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,786,700K ÷ $3,145,770K
= 56.80%

Monolithic Power Systems Inc's return on equity (ROE) has been showing a positive trend over the past five years. The ROE increased from 17.01% in December 2020 to 19.46% in December 2021, showcasing a moderate growth in profitability. Subsequently, there was a notable surge in ROE to 26.23% by December 2022, indicating an improvement in the company's efficiency in generating profits from shareholders' equity.

However, in December 2023, the ROE decreased slightly to 20.85%, which may have been influenced by various factors affecting the company's performance during that period. Nonetheless, the ROE rebounded significantly to 56.80% by December 2024, representing a substantial increase in profitability and efficiency in utilizing equity to generate returns for shareholders.

Overall, Monolithic Power Systems Inc's ROE has shown volatility but a positive trajectory, indicating a strong ability to generate profits relative to shareholders' equity over the five-year period. This trend suggests that the company has been effectively leveraging its equity to create value for its shareholders.