Microchip Technology Inc (MCHP)

Net profit margin

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	US$ in thousands	1,906,900	2,237,700	1,285,500	349,400	570,600
Revenue	US$ in thousands	7,634,400	8,438,700	6,820,900	5,438,400	5,274,200
Net profit margin		24.98%	26.52%	18.85%	6.42%	10.82%

March 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $1,906,900K ÷ $7,634,400K
= 24.98%

The net profit margin of Microchip Technology Inc has exhibited fluctuations over the past five years. In the fiscal year ending March 31, 2024, the net profit margin was recorded at 24.98%, showing a slight decrease from the previous year's margin of 26.52%. Prior to that, the margin had experienced a more significant increase from 18.85% in 2022 to 26.52% in 2023.

Looking further back, there was a notable improvement in profitability from 6.42% in 2021 to 10.82% in 2020. This indicates a pattern of volatility in the company's net profit margin, with periods of both growth and decline. It is essential for stakeholders to monitor these fluctuations closely to assess the company's ability to generate profits relative to its revenue.