Monolithic Power Systems Inc., adjustment to net income

US$ in thousands

12 months ended:	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net income (as reported)	427,374)	437,672)	242,023)	164,375)	108,839)
Add: Change in unrealized gains and losses on available-for-sale securities, net of tax	5,543)	(6,664)	(2,664)	1,466)	1,773)
Net income (adjusted)	432,917)	431,008)	239,359)	165,841)	110,612)

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Monolithic Power Systems Inc., adjusted profitability ratios

	Dec 31, 2023	Dec 31, 2022	Dec 31, 2021	Dec 31, 2020	Dec 31, 2019
Net Profit Margin
Reported net profit margin	23.47%	24.39%	20.04%	19.47%	17.33%
Adjusted net profit margin	23.77%	24.02%	19.82%	19.64%	17.62%
Return on Equity (ROE)
Reported ROE	20.85%	26.23%	19.46%	17.01%	14.07%
Adjusted ROE	21.12%	25.83%	19.24%	17.16%	14.30%
Return on Assets (ROA)
Reported ROA	17.56%	21.26%	15.26%	13.60%	11.38%
Adjusted ROA	17.78%	20.93%	15.09%	13.72%	11.57%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Monolithic Power Systems Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated from 2022 to 2023.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by 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 adjusted net income divided by 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.

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	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)
Revenue	1,821,072)	1,794,148)	1,207,798)	844,452)	627,921)
Profitability Ratio
Net profit margin¹	23.47%	24.39%	20.04%	19.47%	17.33%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	432,917)	431,008)	239,359)	165,841)	110,612)
Revenue	1,821,072)	1,794,148)	1,207,798)	844,452)	627,921)
Profitability Ratio
Adjusted net profit margin²	23.77%	24.02%	19.82%	19.64%	17.62%

2023 Calculations

¹ Net profit margin = 100 × Net income ÷ Revenue
= 100 × 427,374 ÷ 1,821,072 = 23.47%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Revenue
= 100 × 432,917 ÷ 1,821,072 = 23.77%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Monolithic Power Systems Inc. adjusted net profit margin ratio improved from 2021 to 2022 but then slightly deteriorated 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	432,917)	431,008)	239,359)	165,841)	110,612)
Stockholders’ equity	2,049,939)	1,668,602)	1,243,985)	966,587)	773,491)
Profitability Ratio
Adjusted ROE²	21.12%	25.83%	19.24%	17.16%	14.30%

2023 Calculations

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

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 432,917 ÷ 2,049,939 = 21.12%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by 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: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	432,917)	431,008)	239,359)	165,841)	110,612)
Total assets	2,434,353)	2,058,885)	1,585,825)	1,208,491)	956,375)
Profitability Ratio
Adjusted ROA²	17.78%	20.93%	15.09%	13.72%	11.57%

2023 Calculations

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

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 432,917 ÷ 2,434,353 = 17.78%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by 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)

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