Monolithic Power Systems Inc (MPWR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	2,049,940	1,944,860	1,839,090	1,776,260	1,668,600	1,530,710	1,423,120	1,326,110	1,243,980	1,162,710	1,087,360	1,021,580	966,587	914,569	848,945	813,190	773,491	734,428	680,251	640,093
ROE		20.85%	23.12%	24.62%	26.34%	26.23%	25.56%	23.59%	20.83%	19.46%	18.25%	18.30%	17.04%	17.01%	16.83%	15.06%	15.24%	14.97%	15.65%	16.11%	16.45%

December 31, 2023 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $427,374K ÷ $2,049,940K
= 20.85%

Monolithic Power System Inc's Return on Equity (ROE) has shown a general upward trend over the past eight quarters, indicating an improving efficiency in generating profits from shareholders' equity. The ROE has fluctuated between 20.83% and 26.34% during this period, with Q1 2023 showing the highest ROE of 26.34%. This indicates that the company has been effectively utilizing its equity to generate earnings for its shareholders.

Overall, the increasing trend in ROE suggests that Monolithic Power System Inc has been successfully maximizing profitability relative to the equity invested in the company. This indicates positive performance and effective management of assets and liabilities, leading to enhanced shareholder value.