Microchip Technology Inc (MCHP)

Total asset turnover

		Mar 31, 2025	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
Revenue (ttm)	US$ in thousands	4,401,600	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
Total assets	US$ in thousands	—	15,632,200	15,622,300	15,839,700	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
Total asset turnover		—	0.30	0.35	0.42	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

March 31, 2025 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,401,600K ÷ $—K
= —

The total asset turnover of Microchip Technology Inc has shown a fluctuating trend over the past few years. It was 0.31 as of June 30, 2020, and remained relatively stable at this level until December 31, 2020. Subsequently, there has been a gradual increase in the total asset turnover ratio, reaching 0.53 on June 30, 2023.

However, there was a decline in the ratio to 0.30 by December 31, 2024. This could indicate a decrease in the efficiency of utilizing assets to generate revenue during that period. The sudden drop in the total asset turnover ratio raises concerns about the company's ability to generate sales relative to its asset base. Furthermore, the absence of data for March 31, 2025, makes it challenging to assess the most recent performance in terms of asset turnover efficiency.

Overall, it is essential for Microchip Technology Inc to closely monitor and manage its asset turnover to ensure effective utilization of its assets in generating revenue and maintaining profitability.