Analysis of Geographic Areas
Monolithic Power Systems Inc. operates in 4 regions: China; Taiwan; United States; and Other.
Area Asset Turnover
Monolithic Power Systems Inc., asset turnover by geographic area
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| China | 4.96 | 5.06 | 4.68 | 3.31 | 3.40 |
| Taiwan | 13.63 | 7.80 | 11.61 | 8.63 | 5.81 |
| United States | 0.32 | 0.81 | 0.88 | 0.31 | 0.20 |
| Other | 9.12 | 18.94 | 23.13 | 17.18 | 21.56 |
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).
An analysis of geographic asset turnover reveals significant variance in operational efficiency across different regions between 2020 and 2024. While Asian markets generally exhibit higher turnover ratios, the regions categorized as other have seen a notable decline in recent years, and the United States continues to demonstrate the lowest asset utilization of all reported areas.
- Taiwan
- Asset turnover in Taiwan demonstrates a strong overall upward trajectory characterized by high volatility. The ratio grew from 5.81 in 2020 to a peak of 13.63 in 2024, despite a temporary contraction to 7.80 in 2023, indicating a substantial increase in revenue generation per unit of asset.
- China
- A consistent improvement in asset productivity is observed in China. The turnover ratio rose from 3.40 in 2020 to 5.06 in 2023, before stabilizing at 4.96 in 2024, reflecting a steady enhancement in operational efficiency over the analyzed period.
- United States
- The United States maintains the lowest turnover ratios among all geographic segments. After an initial increase that peaked at 0.88 in 2022, the ratio declined to 0.32 by 2024, suggesting a disproportionately large asset base relative to the revenue produced in this region.
- Other Regions
- The "Other" category historically exhibited the highest asset turnover, reaching a peak of 23.13 in 2022. However, a severe downward trend occurred in the subsequent periods, with the ratio falling to 9.12 by 2024, marking a significant reduction in asset efficiency for these miscellaneous markets.
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Area Asset Turnover: China
Monolithic Power Systems Inc.; China; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 1,178,341) | 934,768) | 938,946) | 700,985) | 516,519) |
| Long-lived assets | 237,649) | 184,685) | 200,508) | 211,973) | 151,752) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 4.96 | 5.06 | 4.68 | 3.31 | 3.40 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 1,178,341 ÷ 237,649 = 4.96
Analysis of the China geographic area reveals a significant expansion in revenue generation and a marked improvement in asset utilization efficiency between 2020 and 2024.
- Revenue Growth Trajectory
- Revenue within the China region experienced a consistent upward trend, increasing from 516.5 million US dollars in 2020 to 1.18 billion US dollars by the end of 2024. Although a marginal stagnation occurred between 2022 and 2023, the subsequent surge in 2024 indicates a strong acceleration in market activity.
- Long-lived Asset Utilization
- The asset base displayed a fluctuating pattern, increasing to 211.9 million US dollars in 2021 before undergoing a gradual reduction through 2023. A substantial increase to 237.6 million US dollars was recorded in 2024, suggesting a strategic reinvestment in regional infrastructure to support higher sales volumes.
- Area Asset Turnover Trends
- The asset turnover ratio shifted from a period of relative stability between 2020 and 2021 (averaging 3.35) to a period of high efficiency starting in 2022. The ratio peaked at 5.06 in 2023, reflecting a phase where revenue growth significantly outpaced asset expansion. The slight moderation to 4.96 in 2024 coincides with the increase in long-lived assets, yet the ratio remains substantially higher than the levels observed at the start of the period, indicating a more efficient operational model in the region.
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Area Asset Turnover: Taiwan
Monolithic Power Systems Inc.; Taiwan; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 577,956) | 307,499) | 233,040) | 169,130) | 109,256) |
| Long-lived assets | 42,388) | 39,419) | 20,074) | 19,607) | 18,797) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 13.63 | 7.80 | 11.61 | 8.63 | 5.81 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 577,956 ÷ 42,388 = 13.63
The financial performance in Taiwan from 2020 to 2024 is characterized by aggressive revenue expansion and a strategic increase in long-lived assets, resulting in significant fluctuations in operational efficiency.
- Revenue Growth Trajectory
- A consistent and accelerating upward trend in revenue is observed, growing from US$ 109.3 million in 2020 to US$ 578.0 million by 2024. The most substantial increase occurred between 2023 and 2024, where revenue nearly doubled, indicating a period of rapid market expansion or increased production capacity within the region.
- Long-Lived Asset Investment
- Asset levels remained relatively stable between 2020 and 2022, fluctuating narrowly around US$ 19 million to US$ 20 million. However, a significant capital expenditure event occurred in 2023, with long-lived assets increasing by approximately 96% to US$ 39.4 million. This investment leveled off slightly in 2024, reaching US$ 42.4 million.
- Area Asset Turnover Efficiency
- The asset turnover ratio exhibited a volatile but generally positive trend. Efficiency improved steadily from 5.81 in 2020 to a peak of 11.61 in 2022. A sharp decline to 7.80 occurred in 2023, directly correlating with the surge in long-lived assets, which temporarily outpaced revenue growth. By 2024, the ratio rebounded to its highest level of 13.63, suggesting that the prior year's capital investments were successfully leveraged to drive a massive increase in revenue generation.
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Area Asset Turnover: United States
Monolithic Power Systems Inc.; United States; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 55,235) | 97,294) | 99,804) | 35,770) | 20,098) |
| Long-lived assets | 171,514) | 119,430) | 113,996) | 113,805) | 101,768) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 0.32 | 0.81 | 0.88 | 0.31 | 0.20 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 55,235 ÷ 171,514 = 0.32
The financial performance of the United States geographic area is characterized by a period of rapid expansion and efficiency gains followed by a significant contraction in asset utilization. The trend exhibits a sharp peak in operational efficiency in 2022, which has since reversed due to declining revenues and an expanding asset base.
- Revenue Trends
- Revenue experienced substantial growth between 2020 and 2022, rising from US$ 20,098 thousand to a peak of US$ 99,804 thousand. This represents a nearly five-fold increase over two years. However, this growth trend reversed sharply in 2024, with revenue falling to US$ 55,235 thousand, reflecting a significant reduction in top-line performance compared to the 2022-2023 period.
- Long-lived Assets Investment
- Long-lived assets remained relatively stable from 2020 through 2023, fluctuating slightly between US$ 101,768 thousand and US$ 119,430 thousand. A notable shift occurred in 2024, where assets increased sharply to US$ 171,514 thousand. This indicates a substantial increase in capital investment during a period of declining revenue.
- Area Asset Turnover Analysis
- The area asset turnover ratio demonstrates a strong correlation with revenue growth and asset stability. The ratio improved from 0.20 in 2020 to a peak of 0.88 in 2022, suggesting highly efficient use of assets to generate sales. However, the ratio declined to 0.32 by 2024. This deterioration is attributed to the inverse movement of the underlying components: a decrease in revenue occurring simultaneously with a significant increase in long-lived assets, leading to a marked decline in capital productivity.
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Area Asset Turnover: Other
Monolithic Power Systems Inc.; Other; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||
| Revenue | 395,568) | 481,511) | 522,358) | 301,913) | 198,579) |
| Long-lived assets | 43,394) | 25,418) | 22,579) | 17,577) | 9,211) |
| Area Activity Ratio | |||||
| Area asset turnover1 | 9.12 | 18.94 | 23.13 | 17.18 | 21.56 |
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).
1 2024 Calculation
Area asset turnover = Revenue ÷ Long-lived assets
= 395,568 ÷ 43,394 = 9.12
The financial performance of the "Other" geographic area from 2020 to 2024 is characterized by a divergence between asset investment and revenue generation. While long-lived assets grew consistently throughout the period, revenue peaked in 2022 and subsequently declined, leading to a significant compression in asset turnover efficiency by the end of 2024.
- Revenue Trends
- Revenue exhibited strong growth in the early part of the period, rising from 198,579 thousand US dollars in 2020 to a peak of 522,358 thousand US dollars in 2022. However, a downward trend followed, with revenue decreasing to 481,511 thousand US dollars in 2023 and further declining to 395,568 thousand US dollars by December 31, 2024.
- Long-lived Asset Growth
- Long-lived assets showed a continuous and accelerating upward trajectory. Assets increased from 9,211 thousand US dollars in 2020 to 25,418 thousand US dollars in 2023. A substantial increase occurred in 2024, with assets rising to 43,394 thousand US dollars, representing an increase of approximately 70.7% over the previous year.
- Area Asset Turnover Analysis
- The area asset turnover ratio experienced significant volatility, peaking at 23.13 in 2022. This peak coincided with the highest recorded revenue levels relative to the asset base. However, the ratio declined to 18.94 in 2023 and dropped sharply to 9.12 in 2024. This precipitous decline in 2024 is the result of the simultaneous occurrence of falling revenues and a rapid expansion of the long-lived asset base, indicating a marked reduction in the efficiency of asset utilization for revenue generation in this segment.
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Revenue
Monolithic Power Systems Inc., revenue by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| China | 1,178,341) | 934,768) | 938,946) | 700,985) | 516,519) |
| Taiwan | 577,956) | 307,499) | 233,040) | 169,130) | 109,256) |
| United States | 55,235) | 97,294) | 99,804) | 35,770) | 20,098) |
| Other | 395,568) | 481,511) | 522,358) | 301,913) | 198,579) |
| Total | 2,207,100) | 1,821,072) | 1,794,148) | 1,207,798) | 844,452) |
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).
Total revenue experienced a consistent upward trajectory from 2020 to 2024, growing from 844.5 million USD to 2.21 billion USD. This growth indicates a significant expansion of the global market footprint, characterized by a strong acceleration between 2020 and 2022, followed by a period of stabilization in 2023 and further growth in 2024.
- China Market Performance
- China remains the primary revenue driver, exhibiting substantial growth from 516.5 million USD in 2020 to 1.18 billion USD in 2024. While a period of stagnation occurred between 2022 and 2023, where revenue remained nearly flat at approximately 935 million USD, a strong recovery was observed in 2024, marking the highest revenue level for this region.
- Taiwan Market Expansion
- Taiwan demonstrates the most aggressive growth rate among all analyzed regions. Revenue increased from 109.3 million USD in 2020 to 578.0 million USD in 2024. Notably, the growth accelerated sharply in the final year, with revenue nearly doubling between 2023 and 2024.
- United States Revenue Volatility
- The United States market exhibited significant volatility. Revenue grew from 20.1 million USD in 2020 to a peak of 99.8 million USD in 2022. However, a downward trend followed, with revenue declining to 55.2 million USD by 2024, representing a sharp contraction from its 2022 peak.
- Other Regional Trends
- Revenue from other geographic areas grew steadily from 198.6 million USD in 2020 to a peak of 522.4 million USD in 2022. Since that peak, a consistent decline has been observed, with revenue falling to 395.6 million USD by 2024.
The overall geographic revenue mix has shifted toward a heavier reliance on the East Asian markets. The combined growth in China and Taiwan has offset the revenue contractions observed in the United States and other regions during the 2023-2024 period.
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Long-lived assets
Monolithic Power Systems Inc., long-lived assets by geographic area
US$ in thousands
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| China | 237,649) | 184,685) | 200,508) | 211,973) | 151,752) |
| Taiwan | 42,388) | 39,419) | 20,074) | 19,607) | 18,797) |
| United States | 171,514) | 119,430) | 113,996) | 113,805) | 101,768) |
| Other | 43,394) | 25,418) | 22,579) | 17,577) | 9,211) |
| Total | 494,945) | 368,952) | 357,157) | 362,962) | 281,528) |
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).
Total long-lived assets grew from $281.5 million in 2020 to $494.9 million by the end of 2024. This trajectory is characterized by a period of relative stabilization between 2021 and 2023, followed by a substantial expansion in 2024, where total assets increased by approximately 34% compared to the previous year.
- China Asset Trends
- China represents the largest concentration of long-lived assets. Following an initial increase to $212.0 million in 2021, asset values experienced a gradual decline through 2023, reaching $184.7 million. However, a sharp reversal occurred in 2024, with assets rising to $237.6 million, indicating a renewed investment in the region.
- United States Asset Trends
- Assets within the United States demonstrated consistent growth from 2020 to 2023, moving from $101.8 million to $119.4 million. This steady growth accelerated significantly in 2024, with assets increasing to $171.5 million, reflecting a focused expansion of the domestic infrastructure.
- Taiwan Asset Trends
- Taiwan observed modest growth between 2020 and 2022, maintaining values around $20 million. A significant pivot occurred in 2023, where assets nearly doubled to $39.4 million, and continued upward to $42.4 million in 2024, suggesting a strategic shift in regional asset allocation during this period.
- Other Geographic Areas
- The "Other" category showed the most consistent percentage growth over the five-year period, increasing from $9.2 million in 2020 to $43.4 million in 2024. This represents a nearly five-fold increase, with a notable surge occurring in the final reported year.
The overall geographic distribution indicates a diversified expansion strategy. While China remains the primary hub for long-lived assets, the acceleration of investment in the United States, Taiwan, and other secondary markets in 2024 suggests a broader global scaling of operational capacity.
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