Microchip Technology Inc (MCHP)
Profitability ratios
Return on sales
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 56.07% | 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% |
| Operating profit margin | 6.73% | 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% |
| 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% |
| Net profit margin | -0.06% | 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% |
Microchip Technology Inc has shown an upward trend in its profitability ratios over time.
1. Gross profit margin has steadily increased from 61.30% in June 2020 to 67.85% in June 2023 before declining slightly to 56.07% in March 2025.
2. Operating profit margin has exhibited a similar upward trajectory, starting at 13.19% in June 2020, peaking at 38.54% in September 2023, and then decreasing to 6.73% in March 2025.
3. Pretax margin has consistently improved from 3.79% in June 2020 to 36.29% in September 2023, before dropping to 0.88% in March 2025.
4. Net profit margin also saw a general increase, reaching a peak of 28.14% in September 2023. However, it declined to -0.06% in March 2025, likely indicating a negative profit outcome for that period.
Overall, the profitability ratios of Microchip Technology Inc demonstrate a positive trend over the years, with fluctuations in certain periods reflecting variations in the company's financial performance.
Return on investment
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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% |
| 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% |
| Return on total capital | — | 10.75% | 18.42% | 29.54% | 38.68% | 44.80% | 49.60% | 48.74% | 47.92% | 44.49% | 40.91% | 34.58% | 29.51% | 24.55% | 20.53% | 18.54% | 15.79% | 14.75% | 12.16% | 12.13% |
| 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% |
Microchip Technology Inc's profitability ratios show a positive trend over the past few years. The Operating Return on Assets (Operating ROA) has steadily increased from 4.07% in June 2020 to 20.11% in June 2023, before declining slightly to 19.61% in December 2023. This indicates the company's ability to generate operating profits from its assets has improved significantly.
Similarly, the Return on Assets (ROA) shows an upward trajectory, starting at 3.78% in June 2020 and peaking at 14.53% in June 2023. Despite a slight decrease in the latest available data point, the ROA reflects the company's efficiency in generating profits relative to its total assets.
The Return on Total Capital has also shown a positive trend, increasing from 12.13% in June 2020 to 48.74% in June 2023, before declining to 44.80% by December 2023. This ratio signifies the company's ability to generate returns for all its capital providers, including debt and equity holders.
Moreover, the Return on Equity (ROE) has shown a consistent improvement, rising from 11.70% in June 2020 to 35.09% in June 2023, before slightly dropping to 33.28% by December 2023. The ROE reflects how efficiently the company is utilizing shareholder equity to generate profits.
Overall, Microchip Technology Inc's profitability ratios reflect a strong performance, with consistent growth in returns generated from its assets, capital, and equity over the analyzed period.
See also:
Microchip Technology Inc Profitability Ratios (Quarterly Data)