Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Cash Flow Statement
- Analysis of Solvency Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- Analysis of Geographic Areas
- Price to FCFE (P/FCFE)
- Present Value of Free Cash Flow to Equity (FCFE)
- Total Asset Turnover since 2005
- Price to Earnings (P/E) since 2005
- Aggregate Accruals
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Profitability Ratios (Summary)
Monolithic Power Systems Inc., profitability ratios
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).
- Gross Profit Margin
- The gross profit margin demonstrates a fluctuating yet generally stable trend, starting at 55.18% in 2020 and peaking at 58.44% in 2022, followed by a slight decline to approximately 55.32% in 2024. This suggests consistent efficiency in managing production costs relative to revenue over the five-year period.
- Operating Profit Margin
- The operating profit margin shows a notable upward trajectory from 18.81% in 2020 to a high of 29.36% in 2022. Subsequently, there is a gradual decrease, settling at 24.44% in 2024. This indicates enhanced operational efficiency in the early years, with some reduction in margin in the later years, possibly reflecting increased operating expenses or competitive pressures.
- Net Profit Margin
- The net profit margin presents a steady increase from 19.47% in 2020 to 24.39% in 2022, followed by a small decline in 2023 to 23.47%. However, there is a substantial surge to 80.95% in 2024. This sharp rise may reflect extraordinary gains, exceptional cost reductions, or other significant changes impacting net profitability in the most recent year.
- Return on Equity (ROE)
- Return on equity exhibits growth from 17.01% in 2020 to 26.23% in 2022, indicating improved profitability relative to shareholder equity. The metric declines to 20.85% in 2023 but sharply increases again to 56.8% in 2024. Such volatility suggests significant shifts in net income or equity structure, with a pronounced positive impact in the latest period.
- Return on Assets (ROA)
- Return on assets follows a pattern similar to ROE, rising from 13.6% in 2020 to 21.26% in 2022, then declining to 17.56% in 2023 before rising markedly to 49.4% in 2024. This trend reflects fluctuations in asset utilization efficiency and net income, with substantial improvement in asset returns in the most recent year.
Return on Sales
Return on Investment
Gross Profit Margin
Monolithic Power Systems Inc., gross profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Gross profit | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Gross profit margin1 | ||||||
| Benchmarks | ||||||
| Gross Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
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
Gross profit margin = 100 × Gross profit ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue
- The revenue shows a consistent upward trend over the five-year period. Starting at 844,452 thousand US dollars in 2020, it increased significantly each year, reaching 2,207,100 thousand US dollars by 2024. This indicates strong top-line growth and expanding business operations or market demand.
- Gross Profit
- Gross profit has also followed a positive trajectory, rising from 465,954 thousand US dollars in 2020 to 1,220,870 thousand US dollars in 2024. Although there was a slight dip in gross profit in 2023 compared to 2022, the overall upward trend suggests effective cost management relative to revenue growth.
- Gross Profit Margin
- The gross profit margin shows some fluctuation but remains relatively stable. It improved from 55.18% in 2020 to a peak of 58.44% in 2022, then decreased somewhat in subsequent years to 55.32% in 2024. This pattern suggests initial improvements in cost efficiency or pricing power, followed by a marginal decline yet maintaining above 55%, reflecting a generally healthy profitability level on sales.
- Overall Analysis
- The combination of increasing revenue and gross profit alongside a stable gross profit margin indicates strong operational performance and efficient cost control over the observed period. The slight margin decline in the last two years may warrant further monitoring to ensure maintaining profitability as the company scales.
Operating Profit Margin
Monolithic Power Systems Inc., operating profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Operating income | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Operating profit margin1 | ||||||
| Benchmarks | ||||||
| Operating Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Operating Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Operating Profit Margin, Industry | ||||||
| Information Technology | ||||||
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
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
- Revenue Trend
- The revenue exhibits a consistent upward trend over the five-year period, rising from approximately $844 million in 2020 to an estimated $2.21 billion in 2024. This reflects strong growth, particularly notable between 2021 and 2022, where revenue increased by nearly 49%. Growth continues through 2023 and 2024, albeit at a slightly moderated pace.
- Operating Income Trend
- Operating income shows significant growth, increasing from about $159 million in 2020 to a forecasted $539 million in 2024. The most marked increase occurs between 2021 and 2022, with operating income doubling during this period. Although there is a slight dip in 2023, the figure rises again in 2024, remaining substantially higher than in prior years.
- Operating Profit Margin Analysis
- The operating profit margin rises from 18.81% in 2020 to a peak of 29.36% in 2022, reflecting improved operational efficiency and profitability at that time. However, in the subsequent years, the margin contracts to 26.45% in 2023 and further to 24.44% in 2024. Despite the decline from the peak, the margin remains significantly above the 2020 level, suggesting sustained profitability above earlier periods.
- Overall Insights
- The data indicates robust revenue and operating income growth over the five years, supported by generally strong operating margins. The peak in operating margin in 2022 suggests a period of enhanced profitability, followed by a moderate contraction that may imply increased costs or pricing pressures in later years. Nevertheless, the continued growth in both revenue and operating income, combined with higher-than-baseline margins, points to effective management of operations and scalability of the business.
Net Profit Margin
Monolithic Power Systems Inc., net profit margin calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Revenue | ||||||
| Profitability Ratio | ||||||
| Net profit margin1 | ||||||
| Benchmarks | ||||||
| Net Profit Margin, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| Net Profit Margin, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| Net Profit Margin, Industry | ||||||
| Information Technology | ||||||
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
Net profit margin = 100 × Net income ÷ Revenue
= 100 × ÷ =
2 Click competitor name to see calculations.
The financial data indicates a consistent upward trend in both revenue and net income over the analyzed periods. Revenue has grown from approximately $844 million in 2020 to over $2.2 billion in 2024, signaling a strong expansion in the company's sales or service income. Correspondingly, net income has also increased significantly, rising from about $164 million in 2020 to nearly $1.79 billion in 2024, which evidences a substantial improvement in profitability.
The net profit margin, which measures profitability relative to revenue, reflects a generally positive trajectory with some fluctuations. Starting at 19.47% in 2020, it slightly increased to just over 20% in 2021, then rose more noticeably to 24.39% in 2022. Despite a minor decline to 23.47% in 2023, the margin saw a sharp increase in 2024, reaching 80.95%. This considerable jump in the latest period indicates either a substantial improvement in cost efficiency, pricing strategy, or other income-affecting factors that dramatically enhanced profitability relative to revenue.
Overall, the data depicts a company experiencing robust growth in sales and profitability, culminating in a very high profit margin in the most recent reporting period. This trend suggests improved operational performance and possibly favorable market or internal conditions contributing to enhanced financial outcomes.
Return on Equity (ROE)
Monolithic Power Systems Inc., ROE calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Stockholders’ equity | ||||||
| Profitability Ratio | ||||||
| ROE1 | ||||||
| Benchmarks | ||||||
| ROE, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| ROE, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| ROE, Industry | ||||||
| Information Technology | ||||||
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
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income demonstrates a strong upward trend across the periods analyzed. Starting at $164,375 thousand in 2020, it increases significantly to $242,023 thousand in 2021 and continues to grow substantially to $437,672 thousand in 2022. Despite a slight decrease to $427,374 thousand in 2023, the figure then dramatically rises to $1,786,700 thousand in 2024, indicating a substantial increase in profitability in the most recent year.
- Stockholders’ Equity
- Stockholders’ equity shows consistent growth over the five-year period. Beginning at $966,587 thousand in 2020, it increases steadily each year, reaching $1,243,985 thousand in 2021, $1,668,602 thousand in 2022, and $2,049,939 thousand in 2023. In 2024, equity rises sharply to $3,145,767 thousand, indicating significant reinforcement of the capital base or retained earnings in that period.
- Return on Equity (ROE)
- The return on equity displays a generally positive trend with notable fluctuations. Starting at 17.01% in 2020, ROE increases to 19.46% in 2021 and peaks at 26.23% in 2022. A decline to 20.85% occurs in 2023, followed by a substantial surge to 56.8% in 2024. This final increase represents a remarkable improvement in profitability relative to shareholders’ equity, likely driven by the sharp growth in net income during the same period.
- Overall Analysis
- The period analyzed reveals continuous expansion in both net income and stockholders’ equity, coupled with a strong return on equity that peaks considerably in the last year. The substantial increase in net income and ROE in 2024 suggests enhanced operational efficiency or other favorable financial developments. The consistent growth in equity supports the company’s strengthening financial position over time. However, the volatility in ROE, especially the dip in 2023 before the sharp rise in 2024, indicates some variability in profitability that might warrant further detailed investigation.
Return on Assets (ROA)
Monolithic Power Systems Inc., ROA calculation, comparison to benchmarks
| Dec 31, 2024 | Dec 31, 2023 | Dec 31, 2022 | Dec 31, 2021 | Dec 31, 2020 | ||
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||
| Net income | ||||||
| Total assets | ||||||
| Profitability Ratio | ||||||
| ROA1 | ||||||
| Benchmarks | ||||||
| ROA, Competitors2 | ||||||
| Advanced Micro Devices Inc. | ||||||
| Analog Devices Inc. | ||||||
| Applied Materials Inc. | ||||||
| Broadcom Inc. | ||||||
| Intel Corp. | ||||||
| KLA Corp. | ||||||
| Lam Research Corp. | ||||||
| Micron Technology Inc. | ||||||
| NVIDIA Corp. | ||||||
| Qualcomm Inc. | ||||||
| Texas Instruments Inc. | ||||||
| ROA, Sector | ||||||
| Semiconductors & Semiconductor Equipment | ||||||
| ROA, Industry | ||||||
| Information Technology | ||||||
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
ROA = 100 × Net income ÷ Total assets
= 100 × ÷ =
2 Click competitor name to see calculations.
- Net Income
- The net income demonstrates a significant upward trend over the analyzed period. Starting at 164,375 thousand US dollars in 2020, it increased to 242,023 thousand in 2021 and then experienced a pronounced rise to 437,672 thousand in 2022. Although there was a slight decline to 427,374 thousand in 2023, the figure surged dramatically to 1,786,700 thousand by the end of 2024, indicating strong growth in profitability.
- Total Assets
- Total assets have consistently increased each year, suggesting expansion in the company's asset base. Beginning at 1,208,491 thousand US dollars in 2020, assets grew steadily to 1,585,825 thousand in 2021, 2,058,885 thousand in 2022, and 2,434,353 thousand in 2023. The most notable increase occurred by the end of 2024, with assets reaching 3,617,097 thousand, indicating substantial investment or accumulation of resources.
- Return on Assets (ROA)
- The ROA exhibits notable variability but an overall strong improvement over the period. Starting at 13.6% in 2020, it climbed to 15.26% in 2021 and further to a peak of 21.26% in 2022, suggesting increasing efficiency in asset utilization. A decline to 17.56% in 2023 may indicate some reduction in efficiency or margin pressures. However, the ROA sharply increased to 49.4% in 2024, reflecting an exceptional improvement in profitability relative to assets.