Microchip Technology Inc (MCHP)

Pretax margin

Mar 31, 2025 Mar 31, 2024 Mar 31, 2023 Mar 31, 2022 Mar 31, 2021
Earnings before tax but after interest (EBT) US$ in thousands 38,900 2,365,900 2,909,700 1,482,500 339,500
Revenue US$ in thousands 4,401,600 7,634,400 8,438,700 6,820,900 5,438,400
Pretax margin 0.88% 30.99% 34.48% 21.73% 6.24%

March 31, 2025 calculation

Pretax margin = EBT ÷ Revenue
= $38,900K ÷ $4,401,600K
= 0.88%

The pretax margin of Microchip Technology Inc has shown a fluctuating trend over the past five years, ranging from 0.88% in March 31, 2025, to a peak of 34.48% in March 31, 2023. This indicates a significant level of variability in the company's ability to generate profits before taxes relative to its total revenue. The year 2023 stands out as a particularly strong performance period, with a substantial increase in pretax margin compared to the preceding and subsequent years. It would be advisable for stakeholders to further investigate the factors influencing these fluctuations in order to gain a deeper understanding of the company's financial performance.