Microchip Technology Inc (MCHP)

Fixed asset turnover

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Revenue	US$ in thousands	7,634,400	8,438,700	6,820,900	5,438,400	5,274,200
Property, plant and equipment	US$ in thousands	1,194,600	1,177,900	967,900	854,700	876,100
Fixed asset turnover		6.39	7.16	7.05	6.36	6.02

March 31, 2024 calculation

Fixed asset turnover = Revenue ÷ Property, plant and equipment
= $7,634,400K ÷ $1,194,600K
= 6.39

The fixed asset turnover ratio for Microchip Technology Inc has shown a fluctuating trend over the past five years. The ratio decreased from 6.02 in March 2020 to 6.36 in March 2021, indicating a temporary drop in efficiency in utilizing fixed assets. However, the ratio improved significantly to 7.05 in March 2022, suggesting the company was able to generate more revenue from its fixed assets. In the following year, the ratio slightly declined to 7.16 before dropping to 6.39 in March 2024, indicating a decrease in the company's ability to generate sales relative to its investment in fixed assets. Overall, while there have been fluctuations in the fixed asset turnover ratio, Microchip Technology Inc has generally maintained a relatively high level of efficiency in generating sales from its fixed assets over the past five years.