Microchip Technology Inc (MCHP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | 15,374,600 | 15,873,200 | 16,370,300 | 16,199,500 | 16,478,800 |
| Operating ROA | 1.93% | 16.20% | 19.03% | 11.42% | 6.06% |
March 31, 2025 calculation
Operating ROA = Operating income ÷ Total assets
= $296,300K ÷ $15,374,600K
= 1.93%
Based on the data provided, Microchip Technology Inc's operating return on assets (ROA) has shown some fluctuation over the five-year period.
1. March 31, 2021: The operating ROA was 6.06%, indicating that for every dollar of assets, the company generated 6.06 cents in operating income.
2. March 31, 2022: The operating ROA increased significantly to 11.42%, reflecting an improvement in the company's operational efficiency and profitability.
3. March 31, 2023: The operating ROA experienced a notable increase to 19.03%, indicating that Microchip Technology Inc effectively utilized its assets to generate operating income during this period.
4. March 31, 2024: The operating ROA slightly decreased to 16.20%, which could be a result of changes in the company's operating strategy or market conditions.
5. March 31, 2025: The operating ROA dropped significantly to 1.93%, suggesting a potential decline in the company's ability to generate operating income relative to its assets.
In summary, while Microchip Technology Inc's operating ROA has shown fluctuation over the years, it is important for the company to monitor and analyze the factors influencing these changes in order to maintain sustainable and profitable operations.
Peer comparison
Mar 31, 2025