Stock Analysis on Net
Stock Analysis on Net

Monolithic Power Systems Inc. (NASDAQ:MPWR)

This company has been moved to the archive! The financial data has not been updated since May 5, 2023.

Analysis of Income Taxes

Microsoft Excel

Income Tax Expense (Benefit)

Monolithic Power Systems Inc., income tax expense (benefit), continuing operations

US$ in thousands

Microsoft Excel
12 months ended: Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Federal 95,176 24,955 2,842 1,682 11,023
State 12 35 (1) 8 4
Foreign 5,019 3,801 3,814 3,105 2,992
Current 100,207 28,791 6,655 4,795 14,019
Federal (8,523) 4,929 (1,221) (213) (797)
Foreign (4,419) (3,524) (467) (301) (8)
Deferred (12,942) 1,405 (1,688) (514) (805)
Income tax expense 87,265 30,196 4,967 4,281 13,214

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Current Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations. Monolithic Power Systems Inc. current increased from 2020 to 2021 and from 2021 to 2022.
Deferred Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations. Monolithic Power Systems Inc. deferred increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Income tax expense Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Monolithic Power Systems Inc. income tax expense increased from 2020 to 2021 and from 2021 to 2022.

Effective Income Tax Rate (EITR)

Monolithic Power Systems Inc., effective income tax rate (EITR) reconciliation

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
U.S. statutory federal tax rate 21.00% 21.00% 21.00% 21.00% 21.00%
Foreign income at lower rates -22.80% -23.20% -15.20% -20.70% -22.00%
GILTI 16.00% 11.40% 11.10% 11.00% 14.40%
Changes in valuation allowance 0.20% 0.50% 1.60% 2.10% 0.00%
Stock-based compensation 2.80% 1.60% -11.20% -1.50% -1.10%
Tax credits, net of reserves -1.20% -1.10% -3.80% -6.20% -1.90%
State income taxes -0.20% -0.50% -1.60% -0.70% 0.00%
Other adjustments 0.80% 1.40% 1.00% -1.20% 0.80%
Effective tax rate 16.60% 11.10% 2.90% 3.80% 11.20%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Effective tax rate Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations. Monolithic Power Systems Inc. effective tax rate increased from 2020 to 2021 and from 2021 to 2022.

Components of Deferred Tax Assets and Liabilities

Monolithic Power Systems Inc., components of deferred tax assets and liabilities

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Tax credits 32,037 26,302 23,501 18,080 11,833
Stock-based compensation 2,900 2,027 2,392 6,237 10,040
Deferred compensation 9,844 8,526 7,895 7,110 6,829
Net operating losses 9,000 5,818 1,150 615 1,133
Other expenses not currently deductible 8,891 5,151 4,617 2,323 1,852
Deferred tax assets, gross 62,672 47,824 39,555 34,365 31,687
Valuation allowance (20,321) (19,520) (18,190) (15,411) (13,041)
Deferred tax assets, net of valuation allowance 42,351 28,304 21,365 18,954 18,646
Depreciation and amortization (5,927) (5,067) (1,600) (1,259) (711)
Undistributed foreign earnings (358) (375) (77) (77) (1,105)
Other expenses currently deductible (814) (945) (1,132) (425) —
Deferred tax liabilities (7,099) (6,387) (2,809) (1,761) (1,816)
Net deferred tax assets (liabilities) 35,252 21,917 18,556 17,193 16,830

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred tax assets, gross Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Monolithic Power Systems Inc. deferred tax assets, gross increased from 2020 to 2021 and from 2021 to 2022.
Deferred tax assets, net of valuation allowance Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards. Monolithic Power Systems Inc. deferred tax assets, net of valuation allowance increased from 2020 to 2021 and from 2021 to 2022.
Net deferred tax assets (liabilities) Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting. Monolithic Power Systems Inc. net deferred tax assets (liabilities) increased from 2020 to 2021 and from 2021 to 2022.

Deferred Tax Assets and Liabilities, Classification

Monolithic Power Systems Inc., deferred tax assets and liabilities, classification

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Deferred tax assets, net 35,252 21,917 18,556 17,193 16,830

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Item Description The company
Deferred tax assets, net Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent. Monolithic Power Systems Inc. deferred tax assets, net increased from 2020 to 2021 and from 2021 to 2022.

Adjustments to Financial Statements: Removal of Deferred Taxes

Monolithic Power Systems Inc., adjustments to financial statements

US$ in thousands

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Adjustment to Total Assets
Total assets (as reported) 2,058,885 1,585,825 1,208,491 956,375 793,432
Less: Noncurrent deferred tax assets, net 35,252 21,917 18,556 17,193 16,830
Total assets (adjusted) 2,023,633 1,563,908 1,189,935 939,182 776,602
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported) 1,668,602 1,243,985 966,587 773,491 640,093
Less: Net deferred tax assets (liabilities) 35,252 21,917 18,556 17,193 16,830
Stockholders’ equity (adjusted) 1,633,350 1,222,068 948,031 756,298 623,263
Adjustment to Net Income
Net income (as reported) 437,672 242,023 164,375 108,839 105,268
Add: Deferred income tax expense (benefit) (12,942) 1,405 (1,688) (514) (805)
Net income (adjusted) 424,730 243,428 162,687 108,325 104,463

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Monolithic Power Systems Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

Monolithic Power Systems Inc., adjusted financial ratios

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
Net Profit Margin
Reported net profit margin 24.39% 20.04% 19.47% 17.33% 18.08%
Adjusted net profit margin 23.67% 20.15% 19.27% 17.25% 17.94%
Total Asset Turnover
Reported total asset turnover 0.87 0.76 0.70 0.66 0.73
Adjusted total asset turnover 0.89 0.77 0.71 0.67 0.75
Financial Leverage
Reported financial leverage 1.23 1.27 1.25 1.24 1.24
Adjusted financial leverage 1.24 1.28 1.26 1.24 1.25
Return on Equity (ROE)
Reported ROE 26.23% 19.46% 17.01% 14.07% 16.45%
Adjusted ROE 26.00% 19.92% 17.16% 14.32% 16.76%
Return on Assets (ROA)
Reported ROA 21.26% 15.26% 13.60% 11.38% 13.27%
Adjusted ROA 20.99% 15.57% 13.67% 11.53% 13.45%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

Financial ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Monolithic Power Systems Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Monolithic Power Systems Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Monolithic Power Systems Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Monolithic Power Systems Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Monolithic Power Systems Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Monolithic Power Systems Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Net Profit Margin

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income 437,672 242,023 164,375 108,839 105,268
Revenue 1,794,148 1,207,798 844,452 627,921 582,382
Profitability Ratio
Net profit margin1 24.39% 20.04% 19.47% 17.33% 18.08%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 424,730 243,428 162,687 108,325 104,463
Revenue 1,794,148 1,207,798 844,452 627,921 582,382
Profitability Ratio
Adjusted net profit margin2 23.67% 20.15% 19.27% 17.25% 17.94%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Net profit margin = 100 × Net income ÷ Revenue
= 100 × 437,672 ÷ 1,794,148 = 24.39%

2 Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 424,730 ÷ 1,794,148 = 23.67%

Profitability ratio Description The company
Adjusted net profit margin An indicator of profitability, calculated as adjusted net income divided by total revenue. Monolithic Power Systems Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Total Asset Turnover

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Revenue 1,794,148 1,207,798 844,452 627,921 582,382
Total assets 2,058,885 1,585,825 1,208,491 956,375 793,432
Activity Ratio
Total asset turnover1 0.87 0.76 0.70 0.66 0.73
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue 1,794,148 1,207,798 844,452 627,921 582,382
Adjusted total assets 2,023,633 1,563,908 1,189,935 939,182 776,602
Activity Ratio
Adjusted total asset turnover2 0.89 0.77 0.71 0.67 0.75

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Total asset turnover = Revenue ÷ Total assets
= 1,794,148 ÷ 2,058,885 = 0.87

2 Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 1,794,148 ÷ 2,023,633 = 0.89

Activity ratio Description The company
Adjusted total asset turnover An activity ratio calculated as total revenue divided by adjusted total assets. Monolithic Power Systems Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Financial Leverage

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Total assets 2,058,885 1,585,825 1,208,491 956,375 793,432
Stockholders’ equity 1,668,602 1,243,985 966,587 773,491 640,093
Solvency Ratio
Financial leverage1 1.23 1.27 1.25 1.24 1.24
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets 2,023,633 1,563,908 1,189,935 939,182 776,602
Adjusted stockholders’ equity 1,633,350 1,222,068 948,031 756,298 623,263
Solvency Ratio
Adjusted financial leverage2 1.24 1.28 1.26 1.24 1.25

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 Financial leverage = Total assets ÷ Stockholders’ equity
= 2,058,885 ÷ 1,668,602 = 1.23

2 Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 2,023,633 ÷ 1,633,350 = 1.24

Solvency ratio Description The company
Adjusted financial leverage A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity.
Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.		 Monolithic Power Systems Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

Adjusted Return on Equity (ROE)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income 437,672 242,023 164,375 108,839 105,268
Stockholders’ equity 1,668,602 1,243,985 966,587 773,491 640,093
Profitability Ratio
ROE1 26.23% 19.46% 17.01% 14.07% 16.45%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 424,730 243,428 162,687 108,325 104,463
Adjusted stockholders’ equity 1,633,350 1,222,068 948,031 756,298 623,263
Profitability Ratio
Adjusted ROE2 26.00% 19.92% 17.16% 14.32% 16.76%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 437,672 ÷ 1,668,602 = 26.23%

2 Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 424,730 ÷ 1,633,350 = 26.00%

Profitability ratio Description The company
Adjusted ROE A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity. Monolithic Power Systems Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

Adjusted Return on Assets (ROA)

Microsoft Excel
Dec 31, 2022 Dec 31, 2021 Dec 31, 2020 Dec 31, 2019 Dec 31, 2018
As Reported
Selected Financial Data (US$ in thousands)
Net income 437,672 242,023 164,375 108,839 105,268
Total assets 2,058,885 1,585,825 1,208,491 956,375 793,432
Profitability Ratio
ROA1 21.26% 15.26% 13.60% 11.38% 13.27%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income 424,730 243,428 162,687 108,325 104,463
Adjusted total assets 2,023,633 1,563,908 1,189,935 939,182 776,602
Profitability Ratio
Adjusted ROA2 20.99% 15.57% 13.67% 11.53% 13.45%

Based on: 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31).

2022 Calculations

1 ROA = 100 × Net income ÷ Total assets
= 100 × 437,672 ÷ 2,058,885 = 21.26%

2 Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 424,730 ÷ 2,023,633 = 20.99%

Profitability ratio Description The company
Adjusted ROA A profitability ratio calculated as adjusted net income divided by adjusted total assets. Monolithic Power Systems Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.