Microchip Technology Inc (MCHP)

Return on assets (ROA)

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Net income	US$ in thousands	1,906,900	2,237,700	1,285,500	349,400	570,600
Total assets	US$ in thousands	15,873,200	16,370,300	16,199,500	16,478,800	17,426,100
ROA		12.01%	13.67%	7.94%	2.12%	3.27%

March 31, 2024 calculation

ROA = Net income ÷ Total assets
= $1,906,900K ÷ $15,873,200K
= 12.01%

Analyzing Microchip Technology Inc's return on assets (ROA) over the five-year period reveals fluctuations in the company's efficiency in generating profits from its assets. The ROA has shown an overall positive trend, with an increase from 3.27% in 2020 to 12.01% in 2024. This indicates that the company has become more effective in utilizing its assets to generate earnings for shareholders.

In 2021, there was a significant improvement in ROA to 2.12% from the previous year, suggesting enhanced asset management strategies. Subsequently, there was a notable jump to 7.94% in 2022, indicating further progress in asset efficiency. The highest ROA of 13.67% was achieved in 2023, reflecting the company's peak performance in utilizing its assets to create value.

Overall, Microchip Technology Inc's ROA demonstrates a positive trajectory, reflecting increased efficiency in utilizing assets to generate earnings. This trend signals favorable asset management practices, indicating a potentially strong financial performance for the company in recent years.