Monolithic Power Systems Inc (MPWR)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	3,145,770	2,351,690	2,195,860	2,113,560	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
ROE		56.80%	18.47%	18.72%	19.40%	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%

December 31, 2024 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $1,786,697K ÷ $3,145,770K
= 56.80%

Monolithic Power Systems Inc's return on equity (ROE) has shown a generally increasing trend over the years. From March 31, 2020, to December 31, 2022, the ROE consistently increased from 15.24% to 26.23%, indicating improving profitability and efficiency in generating returns for shareholders.

However, there was a significant spike in ROE to 56.80% by December 31, 2024. Such a sharp increase in ROE might be due to various factors such as exceptional profits, lower equity, or other anomalies. It would be important to investigate the reasons behind this sudden surge to assess the sustainability and quality of the increased ROE.

The subsequent decline in ROE by March 31, 2024, to 19.40%, followed by a further decrease to 18.47% by September 30, 2024, suggests some potential challenges or changes affecting the company's profitability and efficiency.

Overall, Monolithic Power Systems Inc's ROE has shown fluctuations, with both upward and downward movements, indicating the dynamic nature of the company's financial performance and the need for ongoing monitoring and analysis.