Microchip Technology Inc (MCHP)
Pretax margin
| Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) | US$ in thousands | 2,365,900 | 2,909,700 | 1,482,500 | 339,500 | 150,400 |
| Revenue | US$ in thousands | 7,634,400 | 8,438,700 | 6,820,900 | 5,438,400 | 5,274,200 |
| Pretax margin | 30.99% | 34.48% | 21.73% | 6.24% | 2.85% |
March 31, 2024 calculation
Pretax margin = EBT ÷ Revenue
= $2,365,900K ÷ $7,634,400K
= 30.99%
The pretax margin of Microchip Technology Inc has shown a fluctuating trend over the past five years. Starting from a relatively low level of 2.85% in March 2020, the pretax margin has demonstrated significant improvement, reaching 30.99% in March 2024. This indicates that the company has been effectively managing its operating expenses and generating higher levels of operating income in relation to its total revenue.
The upward trajectory of the pretax margin from 6.24% in March 2021 to 30.99% in March 2024 reflects the company's ability to increase profitability and efficiency in its operations over the period. However, it is noteworthy that there was a slight decrease in the pretax margin from 34.48% in March 2023 to 21.73% in March 2022, indicating a temporary dip in profitability during that specific year.
Overall, the consistent improvement in the pretax margin over the five-year period highlights Microchip Technology Inc's efforts to enhance its cost management strategies and streamline its operations to boost profitability.
Peer comparison
Mar 31, 2024