Microchip Technology Inc (MCHP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 57.95% | 60.32% | 63.37% | 65.44% | 67.03% | 67.93% | 67.85% | 67.52% | 67.07% | 66.52% | 65.86% | 65.23% | 64.50% | 63.73% | 62.97% | 62.13% | 61.65% | 61.26% | 61.30% | 61.47% |
| Operating profit margin | 13.67% | 20.90% | 28.65% | 33.68% | 37.06% | 38.54% | 37.86% | 36.93% | 35.00% | 33.00% | 30.24% | 27.12% | 24.96% | 22.17% | 20.16% | 18.35% | 16.06% | 14.07% | 13.19% | 12.27% |
| 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% |
| Net profit margin | 6.49% | 14.22% | 20.80% | 24.98% | 27.59% | 28.14% | 27.35% | 26.52% | 25.73% | 24.14% | 21.34% | 18.85% | 14.95% | 10.71% | 8.40% | 6.42% | 6.29% | 11.62% | 12.23% | 10.82% |
Microchip Technology Inc has shown a generally positive trend in its profitability ratios over the past few years.
- Gross profit margin has steadily increased from 61.47% on March 31, 2020, to 67.93% on September 30, 2023, before declining slightly to 57.95% on December 31, 2024. Despite the decrease in the last quarter of 2024, the company's gross profit margin remains relatively healthy.
- Operating profit margin has also shown an upward trajectory, rising from 12.27% on March 31, 2020, to a peak of 38.54% on September 30, 2023. However, there was a significant decline to 13.67% on December 31, 2024, indicating a potential issue with operating efficiency or cost management.
- Pretax margin has demonstrated a similar trend, increasing from 2.85% on March 31, 2020, to 36.29% on September 30, 2023. The margin then decreased to 8.55% on December 31, 2024, likely impacted by the decline in operating profit margin.
- Net profit margin has followed a pattern of growth, reaching a peak of 28.14% on September 30, 2023. However, there was a subsequent decline to 6.49% on December 31, 2024, indicating challenges in generating net income relative to revenue.
Overall, while Microchip Technology Inc has shown improvement in profitability ratios over the years, there are signs of a potential slowdown in profitability in the last quarter of 2024 that may warrant further investigation into the company's financial performance and strategic decisions.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 4.16% | 7.35% | 11.91% | 16.20% | 19.61% | 20.77% | 20.11% | 19.03% | 17.48% | 15.62% | 13.46% | 11.42% | 10.02% | 8.26% | 7.06% | 6.06% | 5.13% | 4.39% | 4.07% | 3.71% |
| Return on assets (ROA) | 1.98% | 5.00% | 8.65% | 12.01% | 14.60% | 15.16% | 14.53% | 13.67% | 12.85% | 11.42% | 9.50% | 7.94% | 6.00% | 3.99% | 2.94% | 2.12% | 2.01% | 3.63% | 3.78% | 3.27% |
| Return on total capital | 5.16% | 10.81% | 15.05% | 21.99% | 28.42% | 30.22% | 28.89% | 26.95% | 21.71% | 20.07% | 15.26% | 12.81% | 10.42% | 7.37% | 6.24% | 5.39% | 4.91% | 4.86% | 5.01% | 4.48% |
| Return on equity (ROE) | 5.12% | 12.45% | 21.38% | 28.64% | 33.28% | 36.12% | 35.09% | 34.35% | 32.82% | 30.22% | 25.76% | 21.81% | 16.60% | 11.35% | 8.67% | 6.55% | 6.29% | 11.17% | 11.70% | 10.22% |
Microchip Technology Inc's profitability ratios have shown a fluctuating trend over the past few years.
- Operating return on assets (Operating ROA) has been steadily increasing from 3.71% in March 2020 to a peak of 20.77% in September 2023, before slightly decreasing to 19.61% by December 2023 and further down to 4.16% by December 2024.
- Return on assets (ROA) saw a similar pattern of growth, reaching its peak at 15.16% in September 2023 before declining to 1.98% by December 2024.
- Return on total capital started at 4.48% in March 2020, increased significantly to 30.22% by September 2023, and then dropped to 5.16% by December 2024.
- Return on equity (ROE) had a steady upward trajectory, starting at 10.22% in March 2020, reaching a peak of 36.12% in September 2023, followed by a decline to 5.12% by December 2024.
Overall, Microchip Technology Inc's profitability ratios have shown volatility, with fluctuations in different ratios indicating varying levels of profitability and efficiency in asset utilization and capital management over the period.
See also:
Microchip Technology Inc Profitability Ratios (Quarterly Data)