Revenue Analysis
Total Revenue and Operating Revenue have shown a consistent increase from Q1 2023 to Q1 2024. Specifically, revenue grew from $451,065,000 in Q1 2023 to $457,885,000 in Q1 2024. Operating Revenue matches the Total Revenue, indicating all revenue stems from core operations. Gross Profit has also seen slight growth from $258,780,000 in Q1 2023 to $252,441,000 in Q1 2024, which shows a decrease in the most recent quarter but an overall upward trajectory compared with two years back.
Cost Management
Cost of Revenue has increased slightly from $192,285,000 in Q1 2023 to $205,444,000 in Q1 2024. Operating Expenses have also risen from $134,504,000 in Q1 2023 to $156,954,000 in Q1 2024. Total Expenses saw a gradual increase from $326,789,000 in Q1 2023 to $362,398,000 in Q1 2024, indicating heightened costs associated with increased operational scale.
Profitability Analysis
EBITDA has risen from $134,263,000 in Q1 2023 to $103,738,000 in Q1 2024, showing a cyclical decline over the years but considerably lower than peak values in previous quarters. Operating Income was $124,276,000 in Q1 2023, peaking at $135,566,000 in Q3 2023, and reducing to $95,487,000 in Q1 2024. Pretax Income follows a similar pattern. Net Income has a fluctuating pattern, with Q1 2024 recording $92,541,000, a decrease compared to $121,163,000 in Q3 2023.
Cash Flow Indicators
Reconciled Depreciation was constant around $9,987,000 in Q1 2023 and slightly decreased to $8,251,000 by Q1 2024 indicating a continued but slightly reduced depreciation cost. Interest Expense is consistently documented as Interest Income, implying net positive interest, favorable for the company’s cash flow.
Taxation
The Tax Rate has fluctuated, showing a high of 0.189 in Q4 2023 and a lower figure of 0.119 by Q1 2024. Tax Provisions also followed this trend, being $19,771,000 in Q1 2023 and lowering to $12,486,000 by Q1 2024. The Tax Effect of Unusual Items consistently remained at $0.0 for most quarters, minimizing the impact on taxable income adjustments.
Shareholder Metrics
The Diluted and Basic EPS figures have been relatively resilient, with Diluted EPS decreasing from 2.26 in Q1 2023 to 1.89 in Q1 2024, and Basic EPS decreasing from 2.32 to 1.90 across the same period. Average Shares have remained stable, with a minor increase in both Diluted and Basic Average Shares suggesting a slight dilution but generally steady shareholder count. Net Income Available to Common Stockholders aligns closely with the reported Net Income figures.
Conclusion
MPWR has shown growth in revenue and maintained its profitability despite increased costs and reduced net income in the short term. The consistent increase in operational expenses and COGS needs to be controlled to enhance profit margins. A stable shareholder payout via consistent EPS and prudent management of debt and cash flows, evidenced by net positive interest income, positions MPWR well for future stability and potential growth.