Microchip Technology Inc (MCHP)
Total 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 |
| Total assets | US$ in thousands | 15,873,200 | 16,370,300 | 16,199,500 | 16,478,800 | 17,426,100 |
| Total asset turnover | 0.48 | 0.52 | 0.42 | 0.33 | 0.30 |
March 31, 2024 calculation
Total asset turnover = Revenue ÷ Total assets
= $7,634,400K ÷ $15,873,200K
= 0.48
Total asset turnover measures how efficiently a company utilizes its assets to generate revenue. A higher ratio indicates better asset utilization.
Microchip Technology Inc's total asset turnover has fluctuated over the past five years. It decreased from 0.30 in 2020 to 0.33 in 2021, suggesting a slight improvement in asset utilization. Subsequently, the ratio improved further to 0.42 in 2022, indicating more efficient use of assets. However, in 2023, the ratio slightly declined to 0.52, before dropping significantly to 0.48 in 2024.
The decreasing trend in total asset turnover since 2023 may raise concerns about Microchip's ability to generate sales relative to its asset base. Further analysis is required to understand the underlying factors influencing this trend and to determine the overall effectiveness of the company in managing its assets.
Peer comparison
Mar 31, 2024