Microchip Technology Inc (MCHP)

Total asset turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	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	5,277,600	5,364,900	5,459,600
Total assets	US$ in thousands	15,873,200	16,143,000	16,601,400	16,494,600	16,370,300	16,116,100	16,141,100	16,208,400	16,199,500	16,047,200	16,215,000	16,277,800	16,478,800	16,576,100	16,770,900	17,028,100	17,426,100	17,588,600	17,858,500	18,246,400
Total asset turnover		0.48	0.53	0.54	0.53	0.52	0.50	0.47	0.45	0.42	0.40	0.37	0.35	0.33	0.32	0.31	0.31	0.30	0.30	0.30	0.30

March 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $7,634,400K ÷ $15,873,200K
= 0.48

Total asset turnover is a financial ratio that measures a company's ability to generate revenue from its assets. It shows how efficiently a company is using its assets to generate sales. In the case of Microchip Technology Inc, the total asset turnover has shown fluctuating trends over the past few years.

The total asset turnover ratio for Microchip has been ranging between 0.30 and 0.54 over the past 20 quarters. The ratio measures how many dollars in revenue the company generates for each dollar of assets it holds. A higher total asset turnover ratio indicates that the company is more efficient in generating revenue from its assets.

From the data provided, there seems to be an upward trend in the total asset turnover ratio during the most recent quarters, indicating that Microchip is becoming more efficient in utilizing its assets to generate sales. However, the ratio has fluctuated over time and has not shown consistent improvement.

It's important to analyze the trend over a longer period to understand the company's overall asset efficiency. Further investigation into the company's operational and strategic changes may provide insights into the fluctuations in the total asset turnover ratio.