MPWRNEUTRAL

MPWR Return on Equity (ROE) Analysis

22.0%

Updated 6h ago·SEC filings & market data

Key Takeaway

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so MPWR’s 22.0% means it earns $0.22 for every $1 of invested equity.

Sector Performance

71th percentile

MPWR

22.0%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

19.6%(Jul 2026)

↑ Improving

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Deep Analysis

Return on Equity (ROE) measures how much profit a company generates from each dollar of shareholders’ equity, so MPWR’s 22.0% means it earns $0.22 for every $1 of invested equity.

This is above the sector median of 13.6%, placing MPWR at the 70th percentile among its peers. The metric’s trend direction is N/A, and the year-over-year change is also N/A, but the quarter-over-quarter change is +12.2% (from 19.6% to 22.0%). The high level relative to peers suggests strong current profitability, while the limited trend data—only one prior value—leaves the durability of that performance uncertain. The positive quarterly jump reduces immediate risk, but the absence of a longer track record tempers the opportunity signal. This metric supports the overall NEUTRAL verdict: the ROE level is favorable, yet the sparse trend evidence does not justify a bullish or bearish lean.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about MPWR?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are MPWR's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.