Adjustments to Financial Statements: Removal of Goodwill
Adjusted Financial Ratios: Removal of Goodwill (Summary)
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Monolithic Power Systems Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Adjustment to Total Assets
Total assets (as reported)	2,434,353)	2,058,885)	1,585,825)	1,208,491)	956,375)
Less: Goodwill	6,571)	6,571)	6,571)	6,571)	6,571)
Total assets (adjusted)	2,427,782)	2,052,314)	1,579,254)	1,201,920)	949,804)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	2,049,939)	1,668,602)	1,243,985)	966,587)	773,491)
Less: Goodwill	6,571)	6,571)	6,571)	6,571)	6,571)
Stockholders’ equity (adjusted)	2,043,368)	1,662,031)	1,237,414)	960,016)	766,920)

Based on: 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).

Monolithic Power Systems Inc., Financial Data: Reported vs. Adjusted

Download chart

Monolithic Power Systems Inc., adjusted financial ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Total Asset Turnover
Reported total asset turnover	0.75	0.87	0.76	0.70	0.66
Adjusted total asset turnover	0.75	0.87	0.76	0.70	0.66
Financial Leverage
Reported financial leverage	1.19	1.23	1.27	1.25	1.24
Adjusted financial leverage	1.19	1.23	1.28	1.25	1.24
Return on Equity (ROE)
Reported ROE	20.85%	26.23%	19.46%	17.01%	14.07%
Adjusted ROE	20.92%	26.33%	19.56%	17.12%	14.19%
Return on Assets (ROA)
Reported ROA	17.56%	21.26%	15.26%	13.60%	11.38%
Adjusted ROA	17.60%	21.33%	15.33%	13.68%	11.46%

Based on: 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).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Monolithic Power Systems Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Monolithic Power Systems Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Monolithic Power Systems Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Monolithic Power Systems Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Monolithic Power Systems Inc., Financial Ratios: Reported vs. Adjusted

Download chart

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Revenue	1,821,072)	1,794,148)	1,207,798)	844,452)	627,921)
Total assets	2,434,353)	2,058,885)	1,585,825)	1,208,491)	956,375)
Activity Ratio
Total asset turnover¹	0.75	0.87	0.76	0.70	0.66
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Revenue	1,821,072)	1,794,148)	1,207,798)	844,452)	627,921)
Adjusted total assets	2,427,782)	2,052,314)	1,579,254)	1,201,920)	949,804)
Activity Ratio
Adjusted total asset turnover²	0.75	0.87	0.76	0.70	0.66

Based on: 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).

2023 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 1,821,072 ÷ 2,434,353 = 0.75

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 1,821,072 ÷ 2,427,782 = 0.75

Download chart

Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Monolithic Power Systems Inc. adjusted total asset turnover ratio improved from 2021 to 2022 but then deteriorated significantly from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Total assets	2,434,353)	2,058,885)	1,585,825)	1,208,491)	956,375)
Stockholders’ equity	2,049,939)	1,668,602)	1,243,985)	966,587)	773,491)
Solvency Ratio
Financial leverage¹	1.19	1.23	1.27	1.25	1.24
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Adjusted total assets	2,427,782)	2,052,314)	1,579,254)	1,201,920)	949,804)
Adjusted stockholders’ equity	2,043,368)	1,662,031)	1,237,414)	960,016)	766,920)
Solvency Ratio
Adjusted financial leverage²	1.19	1.23	1.28	1.25	1.24

Based on: 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).

2023 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 2,434,353 ÷ 2,049,939 = 1.19

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 2,427,782 ÷ 2,043,368 = 1.19

Download chart

Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Monolithic Power Systems Inc. adjusted financial leverage ratio decreased from 2021 to 2022 and from 2022 to 2023.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	427,374)	437,672)	242,023)	164,375)	108,839)
Stockholders’ equity	2,049,939)	1,668,602)	1,243,985)	966,587)	773,491)
Profitability Ratio
ROE¹	20.85%	26.23%	19.46%	17.01%	14.07%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	427,374)	437,672)	242,023)	164,375)	108,839)
Adjusted stockholders’ equity	2,043,368)	1,662,031)	1,237,414)	960,016)	766,920)
Profitability Ratio
Adjusted ROE²	20.92%	26.33%	19.56%	17.12%	14.19%

Based on: 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).

2023 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 427,374 ÷ 2,049,939 = 20.85%

² Adjusted ROE = 100 × Net income ÷ Adjusted stockholders’ equity
= 100 × 427,374 ÷ 2,043,368 = 20.92%

Download chart

Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as net income divided by adjusted shareholders’ equity.	Monolithic Power Systems Inc. adjusted ROE improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
As Reported
Selected Financial Data (US$ in thousands)
Net income	427,374)	437,672)	242,023)	164,375)	108,839)
Total assets	2,434,353)	2,058,885)	1,585,825)	1,208,491)	956,375)
Profitability Ratio
ROA¹	17.56%	21.26%	15.26%	13.60%	11.38%
Adjusted for Goodwill
Selected Financial Data (US$ in thousands)
Net income	427,374)	437,672)	242,023)	164,375)	108,839)
Adjusted total assets	2,427,782)	2,052,314)	1,579,254)	1,201,920)	949,804)
Profitability Ratio
Adjusted ROA²	17.60%	21.33%	15.33%	13.68%	11.46%

Based on: 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).

2023 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 427,374 ÷ 2,434,353 = 17.56%

² Adjusted ROA = 100 × Net income ÷ Adjusted total assets
= 100 × 427,374 ÷ 2,427,782 = 17.60%

Download chart

Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as net income divided by adjusted total assets.	Monolithic Power Systems Inc. adjusted ROA improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023 not reaching 2021 level.

Monolithic Power Systems Inc. (NASDAQ:MPWR)

Analysis of Goodwill and Intangible Assets

Adjustments to Financial Statements: Removal of Goodwill

Monolithic Power Systems Inc., Financial Data: Reported vs. Adjusted

Adjusted Financial Ratios: Removal of Goodwill (Summary)

Monolithic Power Systems Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)