Microchip Technology Inc (MCHP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 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% | 61.56% | 60.44% | 56.86% |
| Operating profit margin | 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% | 14.61% | 15.55% | 13.80% |
| 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% |
| Net profit margin | 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% | 12.23% | 7.15% | 6.79% |
Microchip Technology Inc's profitability ratios have shown a general trend of improvement over the past few quarters. The company's gross profit margin has been relatively stable, ranging between 60.44% and 67.93%. This indicates that the company has been effectively managing its cost of goods sold.
The operating profit margin has shown a steady increase from around 13.19% to 38.54% over the same period. This suggests that Microchip has been able to control its operating expenses and improve operational efficiency to generate higher levels of operating income.
The pretax margin has also shown an upward trend, increasing from around 2.85% to 36.29%. This indicates that the company has been able to generate higher levels of pre-tax income relative to total revenue.
The net profit margin, representing the company's bottom line profitability, has shown improvement as well, increasing from around 6.29% to 28.14%. This indicates that Microchip has been able to efficiently manage its expenses and generate higher levels of net income relative to total revenue.
Overall, Microchip Technology Inc's profitability ratios demonstrate an improving trend, reflecting effective cost management and operational efficiency, leading to increased profitability over the quarters analyzed.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 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% | 4.38% | 4.67% | 4.13% |
| Return on assets (ROA) | 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% | 3.67% | 2.15% | 2.03% |
| Return on total capital | 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% | 5.61% | 6.07% | 5.37% |
| Return on equity (ROE) | 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% | 11.49% | 7.15% | 7.01% |
Microchip Technology Inc has shown consistent and improving profitability ratios over the periods analyzed.
- Operating return on assets (Operating ROA) has generally increased from 4.13% in December 2019 to 20.11% in June 2023, indicating the company is generating significant operating profits relative to its total assets.
- Return on assets (ROA) has also been on an upward trend, rising from 2.01% in December 2020 to 14.53% in June 2023, suggesting the company is efficiently utilizing its assets to generate profits.
- Return on total capital has shown a similar positive trajectory, increasing from 4.86% in September 2020 to 28.89% in June 2023, indicating the company's ability to generate returns for both equity and debt holders.
- Return on equity (ROE) has consistently improved, rising from 7.01% in December 2019 to 35.09% in June 2023, demonstrating strong profitability for shareholders.
Overall, Microchip Technology Inc's profitability ratios reflect a consistent and improving performance, with a focus on efficient asset utilization and generating returns for both equity and debt holders.
See also:
Microchip Technology Inc Profitability Ratios (Quarterly Data)