Monolithic Power Systems Inc (MPWR)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 539,358 | 485,620 | 457,158 | 452,947 | 481,736 | 509,059 | 525,364 | 554,927 | 526,785 | 468,465 | 393,725 | 312,465 | 262,417 | 223,807 | 206,655 | 173,982 | 158,882 | 149,614 | 119,667 | 113,429 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | 17.15% | 20.65% | 20.82% | 21.43% | 23.50% | 26.17% | 28.57% | 31.24% | 31.57% | 30.60% | 27.67% | 23.56% | 21.09% | 19.25% | 19.01% | 17.03% | 16.44% | 16.36% | 14.10% | 13.95% |
December 31, 2024 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $539,358K ÷ ($—K + $3,145,770K)
= 17.15%
Monolithic Power Systems Inc's return on total capital has shown a generally increasing trend over the years, starting at 13.95% in March 2020 and peaking at 31.57% in December 2022. However, there was a slight decline in the return on total capital in the subsequent periods, with a dip to 17.15% by December 2024.
The company's return on total capital indicates its efficiency in generating profits relative to the total capital employed in its operations. The increasing trend in the earlier years suggests improved profitability and effective capital utilization. However, the decline in the latter periods may raise concerns about the company's ability to maintain the same level of efficiency in generating returns on its capital.
Overall, Monolithic Power Systems Inc's return on total capital performance reflects a mix of positive growth and potential challenges in maintaining profitability levels in the future. Further analysis of the company's financial strategies and operational efficiency may help in understanding the factors influencing its return on total capital dynamics.
Peer comparison
Dec 31, 2024