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).
- China
- The asset turnover ratio in China displays a generally upward trend from 2020 through 2023, increasing from 3.4 to a peak of 5.06. However, there is a slight decline projected in 2024 to 4.96. This suggests improved efficiency in asset usage over most of the period, followed by a marginal decrease toward the end.
- Taiwan
- There is significant growth in Taiwan's asset turnover ratio over the observed period. Starting at 5.81 in 2020, the ratio rises consistently, reaching 11.61 in 2022. Though there is a dip to 7.8 in 2023, a strong recovery occurs in 2024 with the highest ratio of 13.63. This pattern indicates volatile yet increasing asset utilization efficiency.
- United States
- The United States shows a generally low but increasing asset turnover ratio from 0.2 in 2020 to a peak of 0.88 in 2022. Subsequently, the ratio decreases to 0.81 in 2023 and further declines sharply to 0.32 in 2024. This suggests fluctuating efficiency with a notable contraction in later years.
- Other Regions
- The asset turnover ratio in other regions experiences a high initial value of 21.56 in 2020, followed by a declining trend to 17.18 in 2021. A recovery occurs in 2022 with an increase to 23.13, but this is followed by consecutive declines to 18.94 in 2023 and a more substantial drop to 9.12 in 2024. This indicates volatility and a notable reduction in asset efficiency by the end of the period.
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
- Revenue Trend
- The revenue shows a consistent upward trajectory over the analyzed period, increasing from US$516.5 million in 2020 to an estimated US$1.18 billion in 2024. After a significant rise between 2020 and 2022, revenue experienced a slight decrease in 2023, followed by a marked rebound in 2024, indicating strong growth and recovery in this geographic segment.
- Long-Lived Assets Trend
- Long-lived assets increased from US$151.8 million in 2020 to a peak of US$212.0 million in 2021, then declined gradually to US$184.7 million by 2023. A notable increase occurred in 2024, reaching an estimated US$237.6 million, which represents the highest value in the observed period. This pattern suggests fluctuations in capital investment or asset valuation, with intensified investment or asset acquisition anticipated in 2024.
- Area Asset Turnover Trend
- The area asset turnover ratio, reflecting revenue generation efficiency from assets, started at 3.4 in 2020 and slightly decreased to 3.31 in 2021. Subsequently, it increased sharply to 4.68 in 2022 and continued to rise to 5.06 in 2023 before a minor decline to 4.96 in 2024. This trend indicates improving efficiency in asset utilization over the period, despite the slight drop in the final year.
- Overall Insights
- The data illustrates strong revenue growth accompanied by fluctuating but overall increasing long-lived asset values, alongside improving asset turnover ratios. The temporary dips in revenue and asset turnover in 2023 suggest potential operational or market challenges that were largely overcome by 2024. The combination of higher asset investment and improved turnover efficiency implies a strategic emphasis on maximizing returns from geographic area assets.
Area Asset Turnover: Taiwan
Monolithic Power Systems Inc.; Taiwan; area asset turnover calculation
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | |
|---|---|---|---|---|---|
| Selected Financial Data (US$ 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
- Revenue Trend
- Revenue for the Taiwan geographic area shows a consistent and significant upward trajectory over the five-year period. Starting at approximately 109.3 million US dollars in 2020, it increased to 169.1 million in 2021, 233 million in 2022, and 307.5 million in 2023. The most notable growth occurred by 2024 when revenue nearly doubled from the previous year, reaching approximately 578 million US dollars. This indicates a robust and accelerating demand in the Taiwan region.
- Long-Lived Assets Trend
- The value of long-lived assets in Taiwan has experienced a gradual increase from 18.8 million US dollars in 2020 to 20.1 million in 2022. A substantial rise occurred between 2022 and 2023, where the asset base nearly doubled to 39.4 million US dollars, followed by a modest increase to 42.4 million in 2024. This pattern suggests significant capital investment or asset acquisition starting in 2023, likely supporting the expansion reflected in revenue growth.
- Area Asset Turnover Trend
- The area asset turnover ratio, which measures efficiency in generating revenue from long-lived assets, exhibited variability over the period. It increased from 5.81 in 2020 to 8.63 in 2021, then peaked at 11.61 in 2022. However, the ratio declined to 7.8 in 2023, indicating a temporary reduction in asset use efficiency. By 2024, the ratio surged to a high of 13.63, revealing an improved capacity to generate revenue from assets, surpassing previous years. Despite the temporary dip in 2023 likely linked to the substantial asset increase, the efficiency recovered strongly thereafter.
- Overall Analysis
- The data portrays a dynamic growth environment in the Taiwan area, characterized by strong revenue expansion and strategic increases in asset base from 2023 onward. The fluctuations in asset turnover ratio reflect investment cycles, with a temporary efficiency decline due to asset acquisition but a strong recovery indicating effective utilization of these investments. The trend reflects a scaling operation with improving returns on asset deployment by the end of the period analyzed.
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
- Revenue
- The revenue demonstrated a substantial increase from 20,098 thousand US dollars in 2020 to a peak of 99,804 thousand US dollars in 2022, representing strong growth. However, the revenue declined after this peak, decreasing to 97,294 thousand in 2023 and further falling to 55,235 thousand in 2024. This indicates a reversal of the earlier growth trend with a notable drop in the latest period.
- Long-lived assets
- Long-lived assets showed a consistent rising trend throughout the period. The value increased steadily from 101,768 thousand US dollars in 2020 to 119,430 thousand in 2023, followed by a significant jump to 171,514 thousand in 2024. This suggests ongoing or intensified investment in long-term assets, especially pronounced in the final recorded year.
- Area asset turnover
- The area asset turnover ratio improved markedly from 0.2 in 2020 to a high of 0.88 in 2022, indicating enhanced efficiency in utilizing assets to generate revenue. After 2022, the ratio declined to 0.81 in 2023 and dropped sharply to 0.32 in 2024. This pattern reflects a reduction in the efficiency of asset use in the most recent periods, aligning with the decrease in revenue despite increased asset levels.
- Overall Insights
- The data reveal that while asset investments increased continuously, the ability to generate revenue from these assets peaked in 2022 and has since diminished. The sharp decline in both revenue and asset turnover in 2024, despite the largest asset base recorded, points to potential challenges in converting invested assets into sales within the United States geographic area. This may signal operational inefficiencies or market-related difficulties affecting revenue generation capacity.
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
- Revenue
- Revenue shows a notable upward trend from 2020 to 2022, increasing from approximately 198.6 million US dollars to 522.4 million US dollars. However, following this peak, revenue declines in 2023 and 2024, falling to 481.5 million and then to 395.6 million US dollars, respectively. This suggests a period of growth followed by a contraction in sales within the "Other" geographic area.
- Long-lived assets
- The value of long-lived assets consistently rises throughout the entire period. Starting at around 9.2 million US dollars in 2020, these assets nearly double by 2021, then continue to increase steadily to approximately 43.4 million US dollars by 2024. This increasing investment in long-lived assets indicates potential capacity expansion or capital expenditures within this area.
- Area asset turnover
- The area asset turnover ratio experiences fluctuations, beginning at 21.56 in 2020 and then declining to 17.18 in 2021. It rebounds to 23.13 in 2022 before decreasing steadily to 18.94 in 2023 and plunging to 9.12 in 2024. This pattern reflects a peak in efficiency in 2022, followed by a sharp decline, implying that assets are generating less revenue relative to their value over time, particularly in the most recent year.
- Overall Observations
- The data suggest that while initial growth in both revenue and long-lived assets characterized the period from 2020 to 2022, the subsequent years show a divergence. Despite continued increases in asset base, revenue declines after 2022, and asset turnover decreases significantly, especially by 2024. This could indicate challenges in leveraging the enhanced asset base effectively to maintain revenue levels, pointing to potential inefficiencies or market difficulties in the "Other" geographic area.
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).
- Revenue Trends by Geographic Area
-
Total revenues have shown a consistent upward trajectory over the five-year period, increasing from approximately $844 million in 2020 to $2.2 billion in 2024. This represents a significant cumulative growth, indicating an overall expansion in business operations or market demand.
China's revenue contribution has grown substantially from about $517 million in 2020 to nearly $1.18 billion in 2024. Following a steady increase through 2022, revenue slightly dipped in 2023 before rebounding strongly in 2024. This suggests China remains a dominant market with fluctuating but strong demand.
Taiwan's revenues reflect robust growth, starting at approximately $109 million in 2020 and surging to nearly $578 million in 2024. The increase has been especially pronounced in the latest year, more than doubling from the previous year, indicating accelerating sales or market penetration in this region.
The United States has exhibited a different pattern, increasing until 2022 where revenue peaked at about $100 million. However, subsequent years show a decline, with a notable drop to around $55 million in 2024. This decline may indicate market challenges or shifting strategic priorities in this region.
Revenues classified under "Other" have generally risen from $199 million in 2020 to a peak of roughly $522 million in 2022, followed by a decline to approximately $396 million in 2024. This suggests some volatility in smaller or less specified markets, possibly affected by external factors or changing demand patterns.
- Regional Revenue Composition and Dynamics
-
The data illustrates increasing revenue concentration in the Asia-Pacific region, with China and Taiwan together accounting for a growing proportion of total revenues. Their combined share rises from around 74% in 2020 to approximately 80% in 2024, highlighting their importance to the overall revenue mix.
The United States and Other regions have comparatively smaller shares and demonstrate more volatility. The declining trend in U.S. revenue after 2022 suggests potential competitive pressures or market saturation, while the fluctuation in Other revenues underscores varied conditions across less defined markets.
Overall, the revenue growth patterns indicate a strategic focus or competitive strength in the Asia-Pacific markets, particularly in China and Taiwan, which appears to be driving the company's expanding global footprint.
Long-lived assets
Monolithic Power Systems Inc., long-lived assets by geographic area
US$ 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).
- Overview of Long-Lived Assets by Geographic Area
- Over the observed five-year period, the total long-lived assets exhibit an overall upward trajectory, increasing from approximately $281.5 million in 2020 to nearly $495.0 million in 2024. This denotes a significant growth in asset holdings across all regions combined.
- China
- The asset value attributed to China shows initial growth from about $151.8 million in 2020 to a peak of roughly $212.0 million in 2021. However, this is followed by a decline over the next two years, reaching approximately $184.7 million in 2023. In 2024, a notable recovery occurs, with asset values rising sharply to $237.6 million, the highest recorded within the period. This fluctuation suggests a period of contraction followed by renewed investment or asset acquisition in the final year.
- Taiwan
- The assets in Taiwan start at a relatively modest $18.8 million in 2020 and exhibit gradual increases over the first three years, reaching around $20.1 million in 2022. In 2023, a substantial increase occurs, nearly doubling to approximately $39.4 million, continuing with a slight rise to $42.4 million in 2024. This pattern indicates heightened asset expansion activity beginning in 2023.
- United States
- The United States shows consistent growth in long-lived assets each year, starting at about $101.8 million in 2020 and increasing to $171.5 million by 2024. The yearly increments are steady but show an acceleration in the last year, indicating a strategic reinforcement of asset holdings in the U.S. market.
- Other Regions
- Assets classified under "Other" demonstrate a strong upward trend, beginning at approximately $9.2 million in 2020 and increasing steadily to $43.4 million in 2024. The growth is particularly pronounced between 2023 and 2024, indicating significant capital allocation or acquisition in regions outside the main three countries.
- Insights and Summary
- The overall increase in total long-lived assets reflects a broad expansion strategy. While China remains the largest individual region in asset value, its volatility contrasts with the steady growth observed in the United States and Taiwan. The sharp increases in Taiwan and other regions from 2023 onward suggest diversification or new investment initiatives. The data implies a balanced approach to geographic allocation, with emphasis on expanding asset bases in the U.S. and emerging regions alongside sustained levels in China.