Income Tax Expense (Benefit)
Effective Income Tax Rate (EITR)
Components of Deferred Tax Assets and Liabilities
Deferred Tax Assets and Liabilities, Classification
Adjustments to Financial Statements: Removal of Deferred Taxes
Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)
Adjusted Net Profit Margin
Adjusted Total Asset Turnover
Adjusted Financial Leverage
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Monolithic Power Systems Inc., income tax expense (benefit), continuing operations

US$ in thousands

12 months ended:	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Federal	72,576)	61,064)	95,176)	24,955)	2,842)
State	348)	4,257)	12)	35)	(1)
Foreign	11,155)	5,702)	5,019)	3,801)	3,814)
Current	84,079)	71,023)	100,207)	28,791)	6,655)
Federal	2,773)	(1,705)	(8,523)	4,929)	(1,221)
State	160)	(744)	—)	—)	—)
Foreign	(1,300,800)	9,893)	(4,419)	(3,524)	(467)
Deferred	(1,297,867)	7,444)	(12,942)	1,405)	(1,688)
Income tax expense (benefit), net	(1,213,788)	78,467)	87,265)	30,196)	4,967)

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).

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Item	Description	The company
Current	Amount of current income tax expense (benefit) pertaining to taxable income (loss) from continuing operations.	Monolithic Power Systems Inc. current decreased from 2022 to 2023 but then slightly increased from 2023 to 2024.
Deferred	Amount of deferred income tax expense (benefit) pertaining to income (loss) from continuing operations.	Monolithic Power Systems Inc. deferred increased from 2022 to 2023 but then decreased significantly from 2023 to 2024.
Income tax expense (benefit), net	Amount of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Monolithic Power Systems Inc. income tax expense (benefit), net decreased from 2022 to 2023 and from 2023 to 2024.

Monolithic Power Systems Inc., effective income tax rate (EITR) reconciliation

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
U.S. statutory federal tax rate	21.00%	21.00%	21.00%	21.00%	21.00%
Foreign income at lower rates	-21.40%	-21.90%	-22.80%	-23.20%	-15.20%
U.S. tax impact of foreign earnings and losses	15.10%	14.50%	16.30%	11.40%	11.10%
Changes in valuation allowance	626.60%	2.90%	0.20%	0.50%	1.60%
Stock-based compensation	1.90%	2.20%	2.80%	1.60%	-11.20%
Return to provision true-up adjustment	-0.10%	-2.00%	0.00%	-1.10%	0.00%
Tax attributes, net of reserves	-247.20%	-1.30%	-1.00%	-0.50%	-3.80%
Effects of intercompany transactions	-608.50%	0.00%	0.00%	0.00%	0.00%
Other adjustments	0.70%	0.10%	0.10%	1.40%	-0.60%
Effective tax rate	-211.90%	15.50%	16.60%	11.10%	2.90%

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).

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Item	Description	The company
Effective tax rate	Percentage of current income tax expense (benefit) and deferred income tax expense (benefit) pertaining to continuing operations.	Monolithic Power Systems Inc. effective tax rate decreased from 2022 to 2023 and from 2023 to 2024.

Monolithic Power Systems Inc., components of deferred tax assets and liabilities

US$ in thousands

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Tax attributes	1,465,666)	49,633)	41,037)	32,120)	24,651)
Depreciation and amortization	3,465,739)	—)	—)	—)	—)
Stock-based compensation	3,432)	3,404)	2,900)	2,027)	2,392)
Deferred compensation	11,202)	11,126)	9,844)	8,526)	7,895)
Other expenses not currently deductible	9,505)	7,755)	8,891)	5,151)	4,617)
Deferred tax assets, gross	4,955,544)	71,918)	62,672)	47,824)	39,555)
Valuation allowance	(3,624,567)	(35,008)	(20,321)	(19,520)	(18,190)
Deferred tax assets, net of valuation allowance	1,330,977)	36,910)	42,351)	28,304)	21,365)
Depreciation and amortization	—)	(6,420)	(5,927)	(5,067)	(1,600)
Undistributed foreign earnings	(953)	(817)	(358)	(375)	(77)
Other expenses currently deductible	(3,184)	(1,619)	(814)	(945)	(1,132)
Deferred tax liabilities	(4,137)	(8,856)	(7,099)	(6,387)	(2,809)
Net deferred tax assets (liabilities)	1,326,840)	28,054)	35,252)	21,917)	18,556)

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).

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Item	Description	The company
Deferred tax assets, gross	Amount before allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Monolithic Power Systems Inc. deferred tax assets, gross increased from 2022 to 2023 and from 2023 to 2024.
Deferred tax assets, net of valuation allowance	Amount after allocation of valuation allowances of deferred tax asset attributable to deductible temporary differences and carryforwards.	Monolithic Power Systems Inc. deferred tax assets, net of valuation allowance decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Net deferred tax assets (liabilities)	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, without jurisdictional netting.	Monolithic Power Systems Inc. net deferred tax assets (liabilities) decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Monolithic Power Systems Inc., deferred tax assets and liabilities, classification

US$ in thousands

		Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
	Deferred tax assets, net	1,326,840)	28,054)	35,252)	21,917)	18,556)

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).

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Item	Description	The company
Deferred tax assets, net	Amount, after allocation of valuation allowances and deferred tax liability, of deferred tax asset attributable to deductible differences and carryforwards, with jurisdictional netting and classified as noncurrent.	Monolithic Power Systems Inc. deferred tax assets, net decreased from 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

Monolithic Power Systems Inc., adjustments to financial statements

US$ in thousands

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Adjustment to Total Assets
Total assets (as reported)	3,617,097)	2,434,353)	2,058,885)	1,585,825)	1,208,491)
Less: Noncurrent deferred tax assets, net	1,326,840)	28,054)	35,252)	21,917)	18,556)
Total assets (adjusted)	2,290,257)	2,406,299)	2,023,633)	1,563,908)	1,189,935)
Adjustment to Stockholders’ Equity
Stockholders’ equity (as reported)	3,145,767)	2,049,939)	1,668,602)	1,243,985)	966,587)
Less: Net deferred tax assets (liabilities)	1,326,840)	28,054)	35,252)	21,917)	18,556)
Stockholders’ equity (adjusted)	1,818,927)	2,021,885)	1,633,350)	1,222,068)	948,031)
Adjustment to Net Income
Net income (as reported)	1,786,700)	427,374)	437,672)	242,023)	164,375)
Add: Deferred income tax expense (benefit)	(1,297,867)	7,444)	(12,942)	1,405)	(1,688)
Net income (adjusted)	488,833)	434,818)	424,730)	243,428)	162,687)

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).

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

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Monolithic Power Systems Inc., adjusted financial ratios

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
Net Profit Margin
Reported net profit margin	80.95%	23.47%	24.39%	20.04%	19.47%
Adjusted net profit margin	22.15%	23.88%	23.67%	20.15%	19.27%
Total Asset Turnover
Reported total asset turnover	0.61	0.75	0.87	0.76	0.70
Adjusted total asset turnover	0.96	0.76	0.89	0.77	0.71
Financial Leverage
Reported financial leverage	1.15	1.19	1.23	1.27	1.25
Adjusted financial leverage	1.26	1.19	1.24	1.28	1.26
Return on Equity (ROE)
Reported ROE	56.80%	20.85%	26.23%	19.46%	17.01%
Adjusted ROE	26.87%	21.51%	26.00%	19.92%	17.16%
Return on Assets (ROA)
Reported ROA	49.40%	17.56%	21.26%	15.26%	13.60%
Adjusted ROA	21.34%	18.07%	20.99%	15.57%	13.67%

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).

Financial ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Monolithic Power Systems Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.
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 deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
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 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Monolithic Power Systems Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Monolithic Power Systems Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

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

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	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,786,700)	427,374)	437,672)	242,023)	164,375)
Revenue	2,207,100)	1,821,072)	1,794,148)	1,207,798)	844,452)
Profitability Ratio
Net profit margin¹	80.95%	23.47%	24.39%	20.04%	19.47%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	488,833)	434,818)	424,730)	243,428)	162,687)
Revenue	2,207,100)	1,821,072)	1,794,148)	1,207,798)	844,452)
Profitability Ratio
Adjusted net profit margin²	22.15%	23.88%	23.67%	20.15%	19.27%

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).

2024 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 1,786,700 ÷ 2,207,100 = 80.95%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 488,833 ÷ 2,207,100 = 22.15%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Monolithic Power Systems Inc. adjusted net profit margin ratio improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Revenue	2,207,100)	1,821,072)	1,794,148)	1,207,798)	844,452)
Total assets	3,617,097)	2,434,353)	2,058,885)	1,585,825)	1,208,491)
Activity Ratio
Total asset turnover¹	0.61	0.75	0.87	0.76	0.70
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Revenue	2,207,100)	1,821,072)	1,794,148)	1,207,798)	844,452)
Adjusted total assets	2,290,257)	2,406,299)	2,023,633)	1,563,908)	1,189,935)
Activity Ratio
Adjusted total asset turnover²	0.96	0.76	0.89	0.77	0.71

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).

2024 Calculations

¹ Total asset turnover = Revenue ÷ Total assets
= 2,207,100 ÷ 3,617,097 = 0.61

² Adjusted total asset turnover = Revenue ÷ Adjusted total assets
= 2,207,100 ÷ 2,290,257 = 0.96

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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 deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Total assets	3,617,097)	2,434,353)	2,058,885)	1,585,825)	1,208,491)
Stockholders’ equity	3,145,767)	2,049,939)	1,668,602)	1,243,985)	966,587)
Solvency Ratio
Financial leverage¹	1.15	1.19	1.23	1.27	1.25
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted total assets	2,290,257)	2,406,299)	2,023,633)	1,563,908)	1,189,935)
Adjusted stockholders’ equity	1,818,927)	2,021,885)	1,633,350)	1,222,068)	948,031)
Solvency Ratio
Adjusted financial leverage²	1.26	1.19	1.24	1.28	1.26

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).

2024 Calculations

¹ Financial leverage = Total assets ÷ Stockholders’ equity
= 3,617,097 ÷ 3,145,767 = 1.15

² Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 2,290,257 ÷ 1,818,927 = 1.26

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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 2022 to 2023 but then increased from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,786,700)	427,374)	437,672)	242,023)	164,375)
Stockholders’ equity	3,145,767)	2,049,939)	1,668,602)	1,243,985)	966,587)
Profitability Ratio
ROE¹	56.80%	20.85%	26.23%	19.46%	17.01%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	488,833)	434,818)	424,730)	243,428)	162,687)
Adjusted stockholders’ equity	1,818,927)	2,021,885)	1,633,350)	1,222,068)	948,031)
Profitability Ratio
Adjusted ROE²	26.87%	21.51%	26.00%	19.92%	17.16%

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).

2024 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,786,700 ÷ 3,145,767 = 56.80%

² Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 488,833 ÷ 1,818,927 = 26.87%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted shareholders’ equity.	Monolithic Power Systems Inc. adjusted ROE deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

	Dec 31, 2024	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,786,700)	427,374)	437,672)	242,023)	164,375)
Total assets	3,617,097)	2,434,353)	2,058,885)	1,585,825)	1,208,491)
Profitability Ratio
ROA¹	49.40%	17.56%	21.26%	15.26%	13.60%
Adjusted for Deferred Taxes
Selected Financial Data (US$ in thousands)
Adjusted net income	488,833)	434,818)	424,730)	243,428)	162,687)
Adjusted total assets	2,290,257)	2,406,299)	2,023,633)	1,563,908)	1,189,935)
Profitability Ratio
Adjusted ROA²	21.34%	18.07%	20.99%	15.57%	13.67%

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).

2024 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,786,700 ÷ 3,617,097 = 49.40%

² Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 488,833 ÷ 2,290,257 = 21.34%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Monolithic Power Systems Inc. adjusted ROA deteriorated from 2022 to 2023 but then improved from 2023 to 2024 exceeding 2022 level.

Monolithic Power Systems Inc. (NASDAQ:MPWR)

Analysis of Income Taxes

Income Tax Expense (Benefit)

Effective Income Tax Rate (EITR)

Components of Deferred Tax Assets and Liabilities

Deferred Tax Assets and Liabilities, Classification

Adjustments to Financial Statements: Removal of Deferred Taxes

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

Adjusted Financial Ratios: Removal of Deferred Taxes (Summary)

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

Adjusted Net Profit Margin

Adjusted Total Asset Turnover

Adjusted Financial Leverage

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)