Microchip Technology Inc (MCHP)

Gross profit margin

		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
Gross profit (ttm)	US$ in thousands	2,467,900	2,756,700	3,315,300	4,174,200	4,995,700	5,725,100	6,075,900	5,946,400	5,697,900	5,399,000	5,081,500	4,751,900	4,449,600	4,156,000	3,848,500	3,588,100	3,378,800	3,265,900	3,205,600	3,225,200
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
Gross profit margin		56.07%	57.95%	60.32%	63.37%	65.44%	67.03%	67.93%	67.85%	67.52%	67.07%	66.52%	65.86%	65.23%	64.50%	63.73%	62.97%	62.13%	61.65%	61.26%	61.30%

March 31, 2025 calculation

Gross profit margin = Gross profit (ttm) ÷ Revenue (ttm)
= $2,467,900K ÷ $4,401,600K
= 56.07%

The gross profit margin of Microchip Technology Inc has shown a fluctuating trend over the analyzed period, ranging from a low of 57.95% on December 31, 2024, to a high of 67.93% on September 30, 2023.

There was a general increasing trend in the gross profit margin from June 2022 to September 2023, indicating improving profitability and efficiency in the company's production and sales activities. However, after reaching the peak in September 2023, the gross profit margin started to decline.

The decrease in the gross profit margin from September 2023 to March 2025 reflects potential challenges faced by Microchip Technology Inc in maintaining profitability, possibly due to factors such as increased costs, pricing pressures, or changes in sales mix.

It is essential for the company to closely monitor its cost structure and revenue streams to sustain or improve its gross profit margin in the future, ensuring sustainable profitability and financial health.