Operating Profit Margin
since 2005
Calculation
Monolithic Power Systems Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Revenue1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 24.44% | = | 100 | × | 539,358) | ÷ | 2,207,100) |
| Dec 31, 2023 | 26.45% | = | 100 | × | 481,736) | ÷ | 1,821,072) |
| Dec 31, 2022 | 29.36% | = | 100 | × | 526,785) | ÷ | 1,794,148) |
| Dec 31, 2021 | 21.73% | = | 100 | × | 262,417) | ÷ | 1,207,798) |
| Dec 31, 2020 | 18.81% | = | 100 | × | 158,882) | ÷ | 844,452) |
| Dec 31, 2019 | 16.33% | = | 100 | × | 102,562) | ÷ | 627,921) |
| Dec 31, 2018 | 19.49% | = | 100 | × | 113,488) | ÷ | 582,382) |
| Dec 31, 2017 | 16.44% | = | 100 | × | 77,424) | ÷ | 470,929) |
| Dec 31, 2016 | 14.01% | = | 100 | × | 54,447) | ÷ | 388,665) |
| Dec 31, 2015 | 12.33% | = | 100 | × | 41,070) | ÷ | 333,067) |
| Dec 31, 2014 | 12.49% | = | 100 | × | 35,300) | ÷ | 282,535) |
| Dec 31, 2013 | 10.04% | = | 100 | × | 23,915) | ÷ | 238,091) |
| Dec 31, 2012 | 8.08% | = | 100 | × | 17,279) | ÷ | 213,813) |
| Dec 31, 2011 | 6.83% | = | 100 | × | 13,417) | ÷ | 196,519) |
| Dec 31, 2010 | 13.94% | = | 100 | × | 30,498) | ÷ | 218,840) |
| Dec 31, 2009 | 11.84% | = | 100 | × | 19,530) | ÷ | 165,008) |
| Dec 31, 2008 | 14.02% | = | 100 | × | 22,507) | ÷ | 160,511) |
| Dec 31, 2007 | 7.22% | = | 100 | × | 9,670) | ÷ | 134,004) |
| Dec 31, 2006 | 1.18% | = | 100 | × | 1,235) | ÷ | 105,015) |
| Dec 31, 2005 | 6.52% | = | 100 | × | 6,464) | ÷ | 99,131) |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).
1 US$ in thousands
The operating profit margin exhibits a long-term upward trajectory characterized by three distinct phases: initial instability, a period of consistent expansion, and a recent peak followed by a moderate contraction. While both operating income and revenue grew substantially over the twenty-year period, the efficiency of converting revenue into operating profit improved significantly from the early stages of the observation period.
- Early Phase Volatility (2005–2011)
- The period between 2005 and 2011 was marked by significant fluctuations in profitability. The operating profit margin reached a historical low of 1.18% in 2006 before rebounding to 14.02% in 2008. A subsequent decline occurred in 2011, where the margin fell to 6.83%, indicating a period of operational instability or increased relative expenditures during the early growth stages.
- Steady Margin Expansion (2012–2019)
- Beginning in 2012, a consistent upward trend in operational efficiency is observed. The margin climbed from 8.08% in 2012 to a peak of 19.49% by 2018. This growth pattern suggests an improvement in cost management and the realization of economies of scale as revenue increased from approximately 213 million to over 582 million during this timeframe.
- Peak Performance and Recent Normalization (2020–2024)
- A sharp acceleration in profitability occurred between 2020 and 2022, with the operating profit margin reaching a maximum of 29.36% in 2022. This represents the highest level of operational efficiency in the recorded period. However, the most recent data indicates a slight contraction, with margins declining to 26.45% in 2023 and 24.44% in 2024, even as total revenue continued to rise to 2.2 billion.
- Scaling and Operational Leverage
- The relationship between revenue and operating income demonstrates significant positive scaling. While revenue grew approximately 22 times from 2005 to 2024, operating income grew by a factor of more than 80. This disproportionate growth in operating income relative to revenue confirms a substantial increase in operational leverage and a strengthened profitability profile over the long term.
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Comparison to Competitors
Monolithic Power Systems Inc., operating profit margin, long-term trends, comparison to competitors
| Monolithic Power Systems Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 24.44% | 7.37% | 21.56% | 28.95% | 26.10% | -21.99% | 28.61% | -10.31% | 5.19% | 54.12% | 25.85% | 34.94% |
| Dec 31, 2023 | 26.45% | 1.77% | 31.07% | 28.86% | 45.25% | 0.17% | 29.69% | 4.02% | -36.97% | 15.66% | 21.74% | 41.85% |
| Dec 31, 2022 | 29.36% | 5.36% | 27.29% | 30.20% | 42.84% | 3.70% | 31.24% | -7.79% | 31.54% | 37.31% | 35.88% | 50.63% |
| Dec 31, 2021 | 21.73% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | -8.70% | 22.68% | 27.18% | 29.16% | 48.84% |
| Dec 31, 2020 | 18.81% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | -9.02% | 14.01% | 26.07% | 26.58% | 40.76% |
| Dec 31, 2019 | 16.33% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 1.51% | 31.51% | 32.47% | 31.59% | 39.79% |
| Dec 31, 2018 | 19.49% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 17.84% | 49.34% | 33.05% | 3.26% | 42.53% |
| Dec 31, 2017 | 16.44% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 4.31% | 28.88% | 27.99% | 11.73% | 40.66% |
| Dec 31, 2016 | 14.01% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | -29.96% | 1.35% | 14.91% | 27.57% | 35.89% |
| Dec 31, 2015 | 12.33% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 11.03% | 18.52% | 16.21% | 22.85% | 32.88% |
| Dec 31, 2014 | 12.49% | -2.82% | 26.27% | 16.75% | 10.26% | 27.47% | 14.71% | 8.24% | 18.87% | 12.01% | 28.50% | 30.26% |
| Dec 31, 2013 | 10.04% | 1.94% | 28.59% | 5.75% | 21.90% | 23.32% | 3.28% | 9.30% | 2.60% | 15.15% | 29.08% | 23.20% |
| Dec 31, 2012 | 8.08% | -19.48% | 30.51% | 4.71% | 24.62% | 27.44% | 8.92% | 17.81% | -7.51% | 16.22% | 29.72% | 15.38% |
| Dec 31, 2011 | 6.83% | 5.60% | 35.81% | 22.80% | 25.00% | 32.37% | 24.84% | 24.95% | 8.59% | 7.22% | 33.60% | 21.78% |
| Dec 31, 2010 | 13.94% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 11.90% | 18.73% | -2.97% | 29.87% | 32.32% |
| Dec 31, 2009 | 11.84% | 12.29% | 14.14% | -7.85% | 3.23% | 16.26% | -25.20% | 5.60% | -34.87% | -2.06% | 21.37% | 19.09% |
| Dec 31, 2008 | 14.02% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -3.65% | -27.31% | 20.41% | 33.48% | 19.49% |
| Dec 31, 2007 | 7.22% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | 0.05% | -4.92% | 14.78% | 32.50% | 25.28% |
| Dec 31, 2006 | 1.18% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 21.54% | 6.64% | 14.32% | 35.74% | 23.62% |
| Dec 31, 2005 | 6.52% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 13.22% | 4.46% | 5.65% | 42.06% | 20.84% |
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), 10-K (reporting date: 2019-12-31), 10-K (reporting date: 2018-12-31), 10-K (reporting date: 2017-12-31), 10-K (reporting date: 2016-12-31), 10-K (reporting date: 2015-12-31), 10-K (reporting date: 2014-12-31), 10-K (reporting date: 2013-12-31), 10-K (reporting date: 2012-12-31), 10-K (reporting date: 2011-12-31), 10-K (reporting date: 2010-12-31), 10-K (reporting date: 2009-12-31), 10-K (reporting date: 2008-12-31), 10-K (reporting date: 2007-12-31), 10-K (reporting date: 2006-12-31), 10-K (reporting date: 2005-12-31).