Microchip Technology Inc (MCHP)

Net profit margin

		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
Net income (ttm)	US$ in thousands	308,800	781,600	1,369,800	1,906,900	2,356,200	2,517,300	2,396,900	2,237,700	2,071,600	1,844,100	1,539,900	1,285,500	963,600	647,000	478,600	349,400	333,300	608,200	643,500	570,600
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
Net profit margin		6.49%	14.22%	20.80%	24.98%	27.59%	28.14%	27.35%	26.52%	25.73%	24.14%	21.34%	18.85%	14.95%	10.71%	8.40%	6.42%	6.29%	11.62%	12.23%	10.82%

December 31, 2024 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $308,800K ÷ $4,756,900K
= 6.49%

Microchip Technology Inc's net profit margin has shown fluctuations over the past few years, ranging from a low of 6.29% in December 2020 to a high of 28.14% in September 2023. The net profit margin measures the company's net income as a percentage of its total revenue. An increasing trend in the net profit margin indicates that the company is effectively managing its expenses and generating more profit from its sales.

The net profit margin saw a significant improvement from March 2022 to December 2023, increasing from 18.85% to 27.59%. However, there was a slight decline in the margin in the following periods, dropping to 6.49% by December 2024. This decline may suggest that the company faced challenges in controlling costs or experienced lower revenue generation relative to expenses during that period.

Overall, Microchip Technology Inc's net profit margin has shown variability, with periods of both growth and decline. Investors and stakeholders should closely monitor the company's profitability trends to assess its financial performance and sustainability.