Microchip Technology Inc (MCHP)

Total 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
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	17,426,100
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	0.30

December 31, 2024 calculation

Total asset turnover = Revenue (ttm) ÷ Total assets
= $4,756,900K ÷ $15,632,200K
= 0.30

Microchip Technology Inc's total asset turnover has shown a fluctuating trend over the analyzed period, ranging from 0.30 to 0.54. The total asset turnover measures the efficiency of the company in managing its assets to generate revenue. A higher total asset turnover indicates that the company is more efficient in using its assets to generate sales.

From March 31, 2020, to March 31, 2024, the total asset turnover initially saw a steady increase from 0.30 to 0.53, indicating an improvement in asset utilization. However, a notable decrease was observed by the end of December 31, 2024, dropping back to 0.30. This significant drop may suggest a decline in the company's ability to generate revenue relative to its total assets.

It is important for Microchip Technology Inc to analyze the factors contributing to the fluctuations in its total asset turnover and implement strategies to enhance asset efficiency to sustain and improve its profitability in the future.