Microchip Technology Inc (MCHP)

Net 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
Net income (ttm)	US$ in thousands	-2,700	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
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
Net profit margin		-0.06%	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%

March 31, 2025 calculation

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

Net profit margin is a key financial ratio that indicates the percentage of revenue that translates into profit after all expenses are deducted. For Microchip Technology Inc, the trend in net profit margin shows fluctuations over the periods mentioned in the data provided.

The net profit margin improved significantly from June 2022 to March 2023, peaking at 28.14% in September 2023. This period marked a phase of strong profitability for the company. However, the net profit margin then started declining, reaching 6.49% by December 2024. The margin further decreased to a negative value of -0.06% in March 2025, indicating that the company reported a net loss relative to its revenue during that period.

Overall, while there were periods of robust profitability for Microchip Technology Inc, the downward trend in net profit margin towards the end of the timeline suggests challenges in maintaining or improving profitability in some quarters. Further analysis of the company's expenses, revenues, and operating efficiency may provide insights into the factors influencing these fluctuations in net profit margin.