Microchip Technology Inc (MCHP)
Pretax margin
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before tax but after interest (EBT) (ttm) | US$ in thousands | 38,900 | 406,900 | 937,300 | 1,679,400 | 2,365,900 | 2,968,000 | 3,245,900 | 3,111,400 | 2,909,700 | 2,587,100 | 2,266,400 | 1,832,100 | 1,482,500 | 1,147,700 | 723,000 | 547,000 | 339,500 | 240,900 | 234,700 | 199,400 |
| Revenue (ttm) | US$ in thousands | 4,401,600 | 4,756,900 | 5,496,600 | 6,587,100 | 7,634,400 | 8,541,300 | 8,944,800 | 8,763,700 | 8,438,700 | 8,050,200 | 7,638,500 | 7,215,100 | 6,820,900 | 6,443,800 | 6,038,400 | 5,698,100 | 5,438,400 | 5,297,700 | 5,233,000 | 5,261,300 |
| Pretax margin | 0.88% | 8.55% | 17.05% | 25.50% | 30.99% | 34.75% | 36.29% | 35.50% | 34.48% | 32.14% | 29.67% | 25.39% | 21.73% | 17.81% | 11.97% | 9.60% | 6.24% | 4.55% | 4.48% | 3.79% |
March 31, 2025 calculation
Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $38,900K ÷ $4,401,600K
= 0.88%
The pretax margin of Microchip Technology Inc has shown a fluctuating trend over the analyzed period. Starting from a relatively low value of 3.79% on June 30, 2020, the pretax margin gradually increased, reaching its peak of 36.29% on September 30, 2023. This upward trend indicates an improvement in the company's efficiency in generating profits before accounting for taxes.
However, the pretax margin started to decline from September 30, 2023, dropping to 0.88% on March 31, 2025. This significant decrease might suggest potential challenges faced by the company in maintaining profitability levels. It is essential for stakeholders to monitor this metric closely to assess Microchip Technology Inc's ability to manage its operating expenses and generate earnings before tax effectively.
Overall, fluctuations in the pretax margin reflect the evolving financial performance of Microchip Technology Inc and underline the importance of careful financial management in a dynamic business environment.
Peer comparison
Mar 31, 2025