Microchip Technology Inc (MCHP)

Pretax margin

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Earnings before tax but after interest (EBT) (ttm)	US$ in thousands	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	255,800	300,200	207,300
Revenue (ttm)	US$ in thousands	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	5,277,600	5,364,900	5,459,600
Pretax margin		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%	4.85%	5.60%	3.80%

March 31, 2024 calculation

Pretax margin = EBT (ttm) ÷ Revenue (ttm)
= $2,365,900K ÷ $7,634,400K
= 30.99%

The pretax margin of Microchip Technology Inc has shown a generally upward trend over the past few quarters, indicating improved profitability before taxes. The trend began at 3.80% in June 2019 and gradually increased to 30.99% in March 2024. This upward trend suggests that the company has implemented effective cost management strategies or experienced revenue growth. The highest pretax margin was observed in Dec 2023 at 34.75%, while the lowest was in June 2019 at 3.80%. Overall, the increasing pretax margin indicates an improvement in the company's operational efficiency and profitability over time. Further analysis of the underlying factors contributing to this trend would provide deeper insights into the company's financial performance.