Microchip Technology Inc (MCHP)
Operating return on assets (Operating ROA)
| 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 |
| Total assets | US$ in thousands | — | 15,632,200 | 15,622,300 | 15,839,700 | 15,873,200 | 16,143,000 | 16,601,400 | 16,494,600 | 16,370,300 | 16,116,100 | 16,141,100 | 16,208,400 | 16,199,500 | 16,047,200 | 16,215,000 | 16,277,800 | 16,478,800 | 16,576,100 | 16,770,900 | 17,028,100 |
| Operating ROA | — | 4.16% | 7.35% | 11.91% | 16.20% | 19.61% | 20.77% | 20.11% | 19.03% | 17.48% | 15.62% | 13.46% | 11.42% | 10.02% | 8.26% | 7.06% | 6.06% | 5.13% | 4.39% | 4.07% |
March 31, 2025 calculation
Operating ROA = Operating income (ttm) ÷ Total assets
= $296,300K ÷ $—K
= —
Operating return on assets (operating ROA) is a key financial ratio that indicates the efficiency of a company in generating profits from its assets used in operations. The trend analysis of Microchip Technology Inc's operating ROA from June 30, 2020, to March 31, 2025, reveals fluctuations and overall performance.
Microchip's operating ROA steadily increased from 4.07% on June 30, 2020, to a peak of 20.77% on September 30, 2023. This upward trend indicates an improvement in the company's ability to generate operating income relative to its assets during this period.
However, there was a notable decline in operating ROA starting from December 31, 2023, reaching 4.16% by December 31, 2024. This significant drop could be a cause for concern as it suggests a decrease in profitability relative to the company's asset base.
The absence of data for March 31, 2025, hinders a clear understanding of the latest trend. It is crucial to monitor future performance to assess whether the decline in operating ROA is a temporary setback or a more persistent issue that requires attention.
Overall, Microchip Technology Inc's operating ROA experienced fluctuations but generally showed an upward trajectory until the recent decline. Further analysis of the company's operational efficiency and asset utilization is recommended to understand the factors driving these changes in profitability.
Peer comparison
Mar 31, 2025