Microchip Technology Inc (MCHP)

Fixed asset turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	4,756,900	5,496,600	6,587,100	7,634,400	8,541,300	8,944,800	8,763,700	8,438,700	8,050,200	7,638,500	7,215,100	6,820,900	6,443,800	6,038,400	5,698,100	5,438,400	5,297,700	5,233,000	5,261,300	5,274,200
Property, plant and equipment	US$ in thousands	1,152,100	1,171,200	1,196,200	1,194,600	1,208,300	1,206,900	1,185,700	1,177,900	1,113,700	1,088,300	994,900	967,900	929,900	923,700	892,200	854,700	827,400	822,100	844,000	876,100
Fixed asset turnover		4.13	4.69	5.51	6.39	7.07	7.41	7.39	7.16	7.23	7.02	7.25	7.05	6.93	6.54	6.39	6.36	6.40	6.37	6.23	6.02

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $4,756,900K ÷ $1,152,100K
= 4.13

The fixed asset turnover ratio of Microchip Technology Inc has shown a generally increasing trend from March 31, 2020, to June 30, 2022, reaching its peak at 7.39 as of June 30, 2023. This indicates that the company is efficiently utilizing its fixed assets to generate revenue. However, the ratio experienced a decline in the following periods, dropping to 4.13 by December 31, 2024. This significant decrease may suggest a potential shift in the company's operational efficiency in utilizing its fixed assets to generate sales. Further analysis of the company's financial performance and business operations is recommended to understand the factors contributing to this decline and to assess the company's overall financial health.