Income Statement
The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.
Monolithic Power Systems Inc., consolidated income statement
US$ in thousands
Based on: 10-K (reporting date: 2024-12-31), 10-K (reporting date: 2023-12-31), 10-K (reporting date: 2022-12-31), 10-K (reporting date: 2021-12-31), 10-K (reporting date: 2020-12-31).
The financial data demonstrates a consistent growth in revenue over the analyzed periods, increasing from approximately $844 million in 2020 to an estimated $2.2 billion in 2024. Correspondingly, the cost of revenue has also risen, though the gross profit has shown a substantial upward trend, increasing more than twofold from 2020 to 2024, reaching over $1.2 billion in the latest period.
Operating expenses, including research and development as well as selling, general and administrative expenses, have also increased steadily. Research and development costs rose from about $138 million in 2020 to nearly $325 million in 2024, indicating a significant investment in innovation and product development. Selling, general, and administrative expenses show a similar upward trajectory, reaching approximately $357 million in 2024. Total operating expenses surged accordingly, with a notable jump in 2024 compared to previous years.
Despite rising operating expenses, operating income expanded considerably, peaking at over $539 million in 2024, which reflects effective management of cost structures relative to revenue growth. The incremental improvements in operating income from 2020 to 2024 suggest enhancements in operational efficiency and profitability.
Interest income experienced a steady increase throughout the periods, indicating either higher interest rates or a growing investment portfolio, reaching $27 million in 2024. Non-operating items present a mixed picture, with fluctuations in amortization of discount or premium on securities and gains or losses on deferred compensation plan investments. Charitable contributions increased significantly, suggesting stronger corporate social responsibility efforts.
Other income (expense), net figures are broadly positive in most years, with a sizeable spike observed in 2024, which contributed favorably to overall income before taxes. Income before income taxes closely follows the pattern of operating income supplemented by non-operating items and rose markedly from approximately $169 million in 2020 to an estimated $573 million in 2024.
Income tax expenses were negative in most years, consistent with tax payments, but exhibit a remarkable anomaly in 2024, where a large positive tax benefit of approximately $1.2 billion is recorded, significantly boosting net income. Consequently, net income follows a rising trend, jumping to about $1.8 billion in 2024, representing a major increase relative to previous years.
- Revenue and Profitability Trends
- Revenue increased steadily, supported by growth in gross profit and operating income despite rising operating expenses.
- Cost and Expense Patterns
- Costs related to revenue and expenses such as R&D and SG&A consistently increased, reflecting investment in growth and operational scale.
- Non-Operating Items
- Interest income rose gradually; other income and gains/losses fluctuated, with charitable contributions steadily growing.
- Taxation and Net Income
- Income tax expense shifted dramatically in 2024, leading to unusually high net income, indicating a potential tax benefit or extraordinary event affecting tax accounting.
- Overall Financial Health
- The firm shows a strong upward trajectory in profitability, supported by revenue growth and managed operating costs, with a notable tax-related event driving exceptional net income in the most recent period.