Stock Analysis on Net
Stock Analysis on Net

Monolithic Power Systems Inc. (NASDAQ:MPWR)

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Monolithic Power Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Sep 30, 2024 18.47% = 15.21% × 1.21
Jun 30, 2024 18.72% = 15.52% × 1.21
Mar 31, 2024 19.40% = 15.90% × 1.22
Dec 31, 2023 20.85% = 17.56% × 1.19
Sep 30, 2023 23.12% = 19.31% × 1.20
Jun 30, 2023 24.62% = 20.39% × 1.21
Mar 31, 2023 26.34% = 21.01% × 1.25
Dec 31, 2022 26.23% = 21.26% × 1.23
Sep 30, 2022 25.56% = 20.26% × 1.26
Jun 30, 2022 23.59% = 18.80% × 1.25
Mar 31, 2022 20.83% = 16.11% × 1.29
Dec 31, 2021 19.46% = 15.26% × 1.27
Sep 30, 2021 18.25% = 14.19% × 1.29
Jun 30, 2021 18.30% = 14.50% × 1.26
Mar 31, 2021 17.04% = 13.30% × 1.28
Dec 31, 2020 17.01% = 13.60% × 1.25
Sep 30, 2020 16.83% = 13.25% × 1.27
Jun 30, 2020 15.06% = 11.94% × 1.26
Mar 31, 2020 14.56% = 11.75% × 1.24
Dec 31, 2019 14.07% = 11.38% × 1.24
Sep 30, 2019 — = — × 1.25
Jun 30, 2019 — = — × 1.23
Mar 31, 2019 — = — × 1.25

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Monolithic Power Systems Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Sep 30, 2024 18.47% = 21.29% × 0.71 × 1.21
Jun 30, 2024 18.72% = 21.70% × 0.72 × 1.21
Mar 31, 2024 19.40% = 22.44% × 0.71 × 1.22
Dec 31, 2023 20.85% = 23.47% × 0.75 × 1.19
Sep 30, 2023 23.12% = 24.61% × 0.78 × 1.20
Jun 30, 2023 24.62% = 24.50% × 0.83 × 1.21
Mar 31, 2023 26.34% = 25.06% × 0.84 × 1.25
Dec 31, 2022 26.23% = 24.39% × 0.87 × 1.23
Sep 30, 2022 25.56% = 23.42% × 0.87 × 1.26
Jun 30, 2022 23.59% = 22.40% × 0.84 × 1.25
Mar 31, 2022 20.83% = 20.75% × 0.78 × 1.29
Dec 31, 2021 19.46% = 20.04% × 0.76 × 1.27
Sep 30, 2021 18.25% = 19.22% × 0.74 × 1.29
Jun 30, 2021 18.30% = 19.13% × 0.76 × 1.26
Mar 31, 2021 17.04% = 18.65% × 0.71 × 1.28
Dec 31, 2020 17.01% = 19.47% × 0.70 × 1.25
Sep 30, 2020 16.83% = 19.78% × 0.67 × 1.27
Jun 30, 2020 15.06% = 18.60% × 0.64 × 1.26
Mar 31, 2020 14.56% = 18.15% × 0.65 × 1.24
Dec 31, 2019 14.07% = 17.33% × 0.66 × 1.24
Sep 30, 2019 — = — × — × 1.25
Jun 30, 2019 — = — × — × 1.23
Mar 31, 2019 — = — × — × 1.25

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on equity ratio (ROE) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.

Two-Component Disaggregation of ROA

Monolithic Power Systems Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Sep 30, 2024 15.21% = 21.29% × 0.71
Jun 30, 2024 15.52% = 21.70% × 0.72
Mar 31, 2024 15.90% = 22.44% × 0.71
Dec 31, 2023 17.56% = 23.47% × 0.75
Sep 30, 2023 19.31% = 24.61% × 0.78
Jun 30, 2023 20.39% = 24.50% × 0.83
Mar 31, 2023 21.01% = 25.06% × 0.84
Dec 31, 2022 21.26% = 24.39% × 0.87
Sep 30, 2022 20.26% = 23.42% × 0.87
Jun 30, 2022 18.80% = 22.40% × 0.84
Mar 31, 2022 16.11% = 20.75% × 0.78
Dec 31, 2021 15.26% = 20.04% × 0.76
Sep 30, 2021 14.19% = 19.22% × 0.74
Jun 30, 2021 14.50% = 19.13% × 0.76
Mar 31, 2021 13.30% = 18.65% × 0.71
Dec 31, 2020 13.60% = 19.47% × 0.70
Sep 30, 2020 13.25% = 19.78% × 0.67
Jun 30, 2020 11.94% = 18.60% × 0.64
Mar 31, 2020 11.75% = 18.15% × 0.65
Dec 31, 2019 11.38% = 17.33% × 0.66
Sep 30, 2019 — = — × —
Jun 30, 2019 — = — × —
Mar 31, 2019 — = — × —

Based on: 10-Q (reporting date: 2024-09-30), 10-Q (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-K (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-Q (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-K (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-K (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-K (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-K (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-Q (reporting date: 2019-03-31).

The primary reason for the decrease in return on assets ratio (ROA) over Q3 2024 is the decrease in profitability measured by net profit margin ratio.