Microchip Technology Inc (MCHP)

Operating return on assets (Operating ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Operating income	US$ in thousands	2,571,000	3,116,000	1,849,600	998,100	647,100
Total assets	US$ in thousands	15,873,200	16,370,300	16,199,500	16,478,800	17,426,100
Operating ROA		16.20%	19.03%	11.42%	6.06%	3.71%

March 31, 2024 calculation

Operating ROA = Operating income ÷ Total assets
= $2,571,000K ÷ $15,873,200K
= 16.20%

Microchip Technology Inc's operating return on assets (operating ROA) has exhibited a positive trend over the past five years, indicating the company's ability to generate profits from its operating activities relative to its asset base. The operating ROA increased from 3.71% in March 2020 to 16.20% in March 2024, reflecting a significant improvement in the company's operational efficiency and asset utilization.

The consistent growth in operating ROA from 6.06% in March 2021 to 19.03% in March 2023 further underscores Microchip Technology Inc's effective management of assets to drive profitability. This upward trajectory suggests that the company has been successful in maximizing returns on its investments in operating assets over the years.

However, the slight decline in operating ROA from 19.03% in March 2023 to 16.20% in March 2024 may indicate a potential slowdown in the company's operational performance or asset efficiency during the most recent fiscal year. It is important for stakeholders to closely monitor future financial reports to assess whether this trend continues or if there are factors impacting the company's operating ROA.

Overall, Microchip Technology Inc's operating ROA demonstrates a positive performance trajectory, with a strong focus on optimizing asset utilization and operational profitability to enhance shareholder value.