Microchip Technology Inc (MCHP)

Operating 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
Operating income (ttm)	US$ in thousands	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	647,100
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
Operating profit margin		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%	12.27%

December 31, 2024 calculation

Operating profit margin = Operating income (ttm) ÷ Revenue (ttm)
= $650,100K ÷ $4,756,900K
= 13.67%

The operating profit margin of Microchip Technology Inc has shown a generally increasing trend from March 31, 2020 to June 30, 2023, demonstrating operational efficiency and effective cost management. The margin steadily climbed from 12.27% in March 2020 to a peak of 37.86% by June 30, 2023, indicating the company's ability to generate profit from core business operations.

However, there was a slight decline in the operating profit margin in the subsequent periods, with a decrease to 37.06% by December 31, 2023, and a more significant drop to 13.67% by December 31, 2024. These declines may suggest potential challenges or changes impacting the company's operational performance during these periods.

It is important for stakeholders to monitor the operating profit margin closely to assess the company's ability to maintain profitability and efficiency in its operations. Further analysis of the factors influencing these fluctuations in the operating profit margin would be beneficial in understanding the company's financial performance and future prospects.