Microchip Technology Inc (MCHP)

Pretax margin

		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	Mar 31, 2020
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	150,400
Revenue (ttm)	US$ in thousands	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	5,274,200
Pretax margin		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%	2.85%

December 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $406,900K ÷ $4,756,900K
= 8.55%

The pretax margin of Microchip Technology Inc has shown a generally increasing trend from March 31, 2020, at 2.85%, to December 31, 2023, at 34.75%. During this period, there was substantial growth in the company's pretax margin, reaching its peak at 36.29% on September 30, 2023. However, starting from March 31, 2024, the pretax margin started to decline, dropping to 8.55% by December 31, 2024.

Overall, the company experienced a period of significant improvement in profitability as reflected in the increasing pretax margin, showcasing efficient cost management and revenue generation strategies. The subsequent decrease in the pretax margin in the latter part of the provided data period may indicate potential challenges or shifts in the company's financial performance that should be further investigated.