Microchip Technology Inc (MCHP)

Operating 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
Operating income (ttm)	US$ in thousands	296,300	650,100	1,148,600	1,887,000	2,571,000	3,165,500	3,447,700	3,317,800	3,116,000	2,817,500	2,520,900	2,182,100	1,849,600	1,608,100	1,338,700	1,148,600	998,100	850,800	736,400	693,800
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
Operating profit margin		6.73%	13.67%	20.90%	28.65%	33.68%	37.06%	38.54%	37.86%	36.93%	35.00%	33.00%	30.24%	27.12%	24.96%	22.17%	20.16%	18.35%	16.06%	14.07%	13.19%

March 31, 2025 calculation

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

The operating profit margin of Microchip Technology Inc has shown a fluctuating trend over the reported periods. Starting at 13.19% as of June 30, 2020, the margin steadily increased, reaching its peak at 38.54% on September 30, 2023. However, after this peak, the margin started to decline, dropping to 6.73% as of March 31, 2025.

The company's operating profit margin reflects the proportion of revenue that translates into operating profit, indicating efficiency in managing operating expenses relative to sales. The general trend of increasing margins from 2020 to 2023 suggests improved operational efficiency and profitability.

The decline observed in the latter part of the period may indicate potential challenges or changes in the company's operational dynamics. It would be important to further investigate the reasons behind the decrease to determine its impact on Microchip Technology Inc's future financial performance and sustainability.