Microchip Technology Inc (MCHP)

Operating profit margin

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Operating income	US$ in thousands	296,300	2,571,000	3,116,000	1,849,600	998,100
Revenue	US$ in thousands	4,401,600	7,634,400	8,438,700	6,820,900	5,438,400
Operating profit margin		6.73%	33.68%	36.93%	27.12%	18.35%

March 31, 2025 calculation

Operating profit margin = Operating income ÷ Revenue
= $296,300K ÷ $4,401,600K
= 6.73%

Based on the data provided, Microchip Technology Inc's operating profit margin has fluctuated over the past five years.

The operating profit margin increased significantly from 18.35% as of March 31, 2021, to 27.12% as of March 31, 2022, indicating improved operational efficiency or cost control measures.

This upward trend continued as the operating profit margin rose further to 36.93% as of March 31, 2023, suggesting that the company was able to generate higher profits relative to its operating costs during that period.

However, there was a slight downturn in the operating profit margin to 33.68% as of March 31, 2024, possibly due to changes in the company's cost structure or market conditions.

The most significant decline occurred in the latest period, with the operating profit margin dropping to 6.73% as of March 31, 2025. This sharp decrease could indicate challenges faced by the company in maintaining profitability, such as increased operating expenses or a decrease in revenue.

Overall, Microchip Technology Inc's operating profit margin has shown mixed performance over the past five years, with periods of improvement followed by declines. It will be essential for the company to monitor and address the factors influencing its operating profit margin to sustain profitability in the future.