Microchip Technology Inc (MCHP)

Net profit margin

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	-2,700	1,906,900	2,237,700	1,285,500	349,400
Revenue	US$ in thousands	4,401,600	7,634,400	8,438,700	6,820,900	5,438,400
Net profit margin		-0.06%	24.98%	26.52%	18.85%	6.42%

March 31, 2025 calculation

Net profit margin = Net income ÷ Revenue
= $-2,700K ÷ $4,401,600K
= -0.06%

Microchip Technology Inc's net profit margin has shown variability over the past five years. The margin increased from 6.42% on March 31, 2021, to 18.85% on March 31, 2022, indicating an improving profitability trend. Subsequently, there was a notable surge in the net profit margin to 26.52% by March 31, 2023, further enhancing the company's profitability.

However, the net profit margin experienced a slight decline to 24.98% by March 31, 2024, although the margin remained at a relatively high level. Furthermore, there was a concerning decrease in the net profit margin to -0.06% by March 31, 2025, indicating that the company may have incurred losses during that period.

Overall, while Microchip Technology Inc demonstrated significant improvements in profitability from 2021 to 2023, the negative net profit margin in 2025 raises potential red flags regarding the company's financial performance and operational efficiency. Regular monitoring and analysis of the net profit margin will be crucial for assessing the company's financial health and sustainability.