Return on Equity (ROE)
since 2005
Calculation
Monolithic Power Systems Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income (loss)1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 56.80% | = | 100 | × | 1,786,700) | ÷ | 3,145,767) |
| Dec 31, 2023 | 20.85% | = | 100 | × | 427,374) | ÷ | 2,049,939) |
| Dec 31, 2022 | 26.23% | = | 100 | × | 437,672) | ÷ | 1,668,602) |
| Dec 31, 2021 | 19.46% | = | 100 | × | 242,023) | ÷ | 1,243,985) |
| Dec 31, 2020 | 17.01% | = | 100 | × | 164,375) | ÷ | 966,587) |
| Dec 31, 2019 | 14.07% | = | 100 | × | 108,839) | ÷ | 773,491) |
| Dec 31, 2018 | 16.45% | = | 100 | × | 105,268) | ÷ | 640,093) |
| Dec 31, 2017 | 12.49% | = | 100 | × | 65,203) | ÷ | 522,007) |
| Dec 31, 2016 | 12.23% | = | 100 | × | 52,720) | ÷ | 431,116) |
| Dec 31, 2015 | 9.54% | = | 100 | × | 35,172) | ÷ | 368,516) |
| Dec 31, 2014 | 10.25% | = | 100 | × | 35,495) | ÷ | 346,425) |
| Dec 31, 2013 | 7.08% | = | 100 | × | 22,898) | ÷ | 323,399) |
| Dec 31, 2012 | 6.10% | = | 100 | × | 15,756) | ÷ | 258,294) |
| Dec 31, 2011 | 5.48% | = | 100 | × | 13,301) | ÷ | 242,877) |
| Dec 31, 2010 | 11.97% | = | 100 | × | 29,563) | ÷ | 246,895) |
| Dec 31, 2009 | 9.24% | = | 100 | × | 19,674) | ÷ | 212,957) |
| Dec 31, 2008 | 14.71% | = | 100 | × | 24,226) | ÷ | 164,645) |
| Dec 31, 2007 | 8.42% | = | 100 | × | 11,580) | ÷ | 137,537) |
| Dec 31, 2006 | -3.02% | = | 100 | × | (2,863) | ÷ | 94,952) |
| Dec 31, 2005 | 6.53% | = | 100 | × | 5,107) | ÷ | 78,168) |
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 financial performance from 2005 to 2024 is characterized by a long-term trajectory of expanding profitability and capital efficiency. While the initial decade was marked by moderate volatility and slower growth, the most recent period demonstrates an exponential increase in net income that has significantly outpaced the growth of stockholders' equity, leading to a substantial surge in the Return on Equity (ROE).
- Profitability and Equity Growth
- Net income exhibited a gradual increase from 2005 through 2015, with a notable exception in 2006 when a net loss was recorded. Following 2016, profitability entered a phase of rapid acceleration, progressing from $52.7 million to $437.7 million by 2022. This growth culminated in a sharp increase in 2024, with net income reaching $1.787 billion. Concurrently, stockholders' equity maintained a consistent upward trend, growing from $78.2 million in 2005 to $3.146 billion by 2024, reflecting a disciplined accumulation of capital.
- ROE Trend Analysis
- The ROE profile can be divided into three distinct phases: 1. Stability and Volatility (2005–2015): During this period, ROE fluctuated between a low of -3.02% and a high of 14.71%, indicating a period of operational scaling and sensitivity to market conditions. 2. Steady Expansion (2016–2022): A consistent upward trend is observed, with ROE climbing from 12.23% to 26.23%. This indicates increasing efficiency in generating profits from shareholder investments. 3. Hyper-Growth (2023–2024): ROE experienced a dramatic spike, rising to 56.80% by the end of 2024. This acceleration was primarily driven by the disproportionate surge in net income relative to the increase in equity.
- Capital Efficiency Insights
- The correlation between net income and equity suggests that the company has successfully transitioned from a growth phase dependent on capital accumulation to a phase of high operational leverage. The leap in ROE to 56.80% in 2024 suggests an exceptionally high capacity to generate earnings per unit of equity, signaling a peak in financial productivity over the observed twenty-year period.
AI Ask an analyst for more
Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.
Without a user account, I tend to respond rather slowly.
How can I help you?
Comparison to Competitors
Monolithic Power Systems Inc., ROE, long-term trends, comparison to competitors
| Monolithic Power Systems Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Dec 31, 2024 | 56.80% | 2.85% | 4.65% | 37.77% | 8.71% | -18.89% | 82.00% | 44.82% | -6.29% | 1.72% | 69.24% | 38.60% | 28.39% |
| Dec 31, 2023 | 20.85% | 1.53% | 9.32% | 41.94% | 58.70% | 1.60% | 116.01% | 54.94% | -1.05% | -13.22% | 19.76% | 33.51% | 38.53% |
| Dec 31, 2022 | 26.23% | 2.41% | 7.54% | 53.51% | 50.62% | 7.90% | 237.04% | 73.35% | -2.68% | 17.41% | 36.65% | 71.81% | 60.02% |
| Dec 31, 2021 | 19.46% | 42.18% | 3.66% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | -3.29% | 13.34% | 25.64% | 90.88% | 58.27% |
| Dec 31, 2020 | 17.01% | 42.66% | 10.17% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 18.26% | 6.89% | 22.91% | 85.54% | 60.90% |
| Dec 31, 2019 | 14.07% | 12.06% | 11.64% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | -2.45% | 17.59% | 44.33% | 89.35% | 56.33% |
| Dec 31, 2018 | 16.45% | 26.62% | 13.61% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 12.58% | 43.77% | 40.78% | -524.14% | 62.04% |
| Dec 31, 2017 | 12.49% | 7.04% | 7.16% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 0.53% | 27.33% | 28.91% | 8.02% | 35.62% |
| Dec 31, 2016 | 12.23% | -119.47% | 16.68% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -19.60% | -2.28% | 13.74% | 17.95% | 34.33% |
| Dec 31, 2015 | 9.54% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 8.46% | 23.57% | 14.27% | 16.78% | 30.02% |
| Dec 31, 2014 | 10.25% | -215.51% | 13.23% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 6.74% | 28.27% | 9.87% | 20.34% | 27.15% |
| Dec 31, 2013 | 7.08% | -15.26% | 14.21% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 6.84% | 13.02% | 11.65% | 18.99% | 20.01% |
| Dec 31, 2012 | 6.10% | -219.89% | 15.63% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | 12.27% | -13.40% | 14.02% | 18.22% | 16.05% |
| Dec 31, 2011 | 5.48% | 30.88% | 22.85% | 21.89% | 27.52% | 28.19% | 27.77% | 29.30% | 16.37% | 1.97% | 7.96% | 15.81% | 20.42% |
| Dec 31, 2010 | 11.97% | 46.50% | 22.25% | 12.44% | 27.57% | 23.19% | 9.45% | 19.61% | 8.00% | 23.07% | -2.55% | 15.57% | 30.93% |
| Dec 31, 2009 | 9.24% | 46.91% | 9.80% | -4.30% | -4.23% | 10.48% | -23.96% | -20.79% | 3.85% | -39.43% | -1.25% | 7.84% | 15.12% |
| Dec 31, 2008 | 14.71% | — | 32.49% | 12.73% | — | 13.54% | 12.04% | 24.70% | -3.35% | -26.21% | 30.47% | 17.61% | 20.59% |
| Dec 31, 2007 | 8.42% | -113.01% | 21.25% | 21.87% | — | 16.31% | 14.88% | 58.30% | -0.37% | -4.13% | 22.36% | 20.86% | 26.64% |
| Dec 31, 2006 | -3.02% | -2.87% | 15.99% | 22.80% | — | 13.72% | 10.66% | 24.05% | 10.88% | 5.03% | 20.76% | 18.42% | 38.21% |
| Dec 31, 2005 | 6.53% | 4.94% | 11.24% | 13.55% | — | 23.95% | 15.33% | 28.06% | 5.67% | 3.22% | 8.52% | 19.27% | 19.47% |
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).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Monolithic Power Systems Inc., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Monolithic Power Systems Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Dec 31, 2024 | 56.80% | 11.16% |
| Dec 31, 2023 | 20.85% | 12.69% |
| Dec 31, 2022 | 26.23% | 21.59% |
| Dec 31, 2021 | 19.46% | 24.91% |
| Dec 31, 2020 | 17.01% | 24.28% |
| Dec 31, 2019 | 14.07% | 25.76% |
| Dec 31, 2018 | 16.45% | 32.95% |
| Dec 31, 2017 | 12.49% | 16.60% |
| Dec 31, 2016 | 12.23% | 12.61% |
| Dec 31, 2015 | 9.54% | 18.69% |
| Dec 31, 2014 | 10.25% | 19.37% |
| Dec 31, 2013 | 7.08% | 15.49% |
| Dec 31, 2012 | 6.10% | 14.85% |
| Dec 31, 2011 | 5.48% | 21.32% |
| Dec 31, 2010 | 11.97% | 20.49% |
| Dec 31, 2009 | 9.24% | 5.22% |
| Dec 31, 2008 | 14.71% | 9.53% |
| Dec 31, 2007 | 8.42% | 13.17% |
| Dec 31, 2006 | -3.02% | 16.33% |
| Dec 31, 2005 | 6.53% | 18.14% |
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).
Comparison to Industry (Information Technology)
Monolithic Power Systems Inc., ROE, long-term trends, comparison to industry (information technology)
| Monolithic Power Systems Inc. | Information Technology | |
|---|---|---|
| Dec 31, 2024 | 56.80% | 28.82% |
| Dec 31, 2023 | 20.85% | 31.26% |
| Dec 31, 2022 | 26.23% | 38.03% |
| Dec 31, 2021 | 19.46% | 41.64% |
| Dec 31, 2020 | 17.01% | 35.38% |
| Dec 31, 2019 | 14.07% | 35.94% |
| Dec 31, 2018 | 16.45% | 30.23% |
| Dec 31, 2017 | 12.49% | 23.19% |
| Dec 31, 2016 | 12.23% | 23.00% |
| Dec 31, 2015 | 9.54% | 25.97% |
| Dec 31, 2014 | 10.25% | 25.43% |
| Dec 31, 2013 | 7.08% | 24.73% |
| Dec 31, 2012 | 6.10% | 26.09% |
| Dec 31, 2011 | 5.48% | 29.03% |
| Dec 31, 2010 | 11.97% | 27.62% |
| Dec 31, 2009 | 9.24% | 20.05% |
| Dec 31, 2008 | 14.71% | 25.24% |
| Dec 31, 2007 | 8.42% | 23.67% |
| Dec 31, 2006 | -3.02% | 22.58% |
| Dec 31, 2005 | 6.53% | 21.92% |
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).