Microchip Technology Inc (MCHP)

Operating profit margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Operating income (ttm)	US$ in thousands	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	647,100	771,000	834,500	753,600
Revenue (ttm)	US$ in thousands	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	5,277,600	5,364,900	5,459,600
Operating profit margin		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%	12.27%	14.61%	15.55%	13.80%

March 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $2,571,000K ÷ $7,634,400K
= 33.68%

The operating profit margin of Microchip Technology Inc has shown a fluctuating trend over the past several quarters. It reached its highest point of 38.54% in September 2023 before experiencing a slight decline in the subsequent quarters. Despite the fluctuations, the operating profit margin has generally been above 30% since December 2021, indicating a strong profitability performance. This suggests that the company has been effective in controlling its operating expenses relative to its revenue generation during this period. It is essential for the company to continue monitoring and managing its operating costs and revenue streams to sustain and potentially improve its profitability in the future.