Microchip Technology Inc (MCHP)

Return on assets (ROA)

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Net income	US$ in thousands	-2,700	1,906,900	2,237,700	1,285,500	349,400
Total assets	US$ in thousands	15,374,600	15,873,200	16,370,300	16,199,500	16,478,800
ROA		-0.02%	12.01%	13.67%	7.94%	2.12%

March 31, 2025 calculation

ROA = Net income ÷ Total assets
= $-2,700K ÷ $15,374,600K
= -0.02%

Microchip Technology Inc has shown a fluctuation in its return on assets (ROA) over the given period. Initially, in March 2021, the ROA stood at 2.12%, indicating a relatively lower return on its assets. However, there was a significant improvement in financial performance in the subsequent years, with ROA reaching 7.94% by March 2022, and further increasing to 13.67% by March 2023, demonstrating a commendable growth in asset efficiency.

In the following years, there was a slight decrease in ROA, dropping to 12.01% by March 2024. Notably, by March 2025, the company experienced a negative ROA of -0.02%, suggesting a potential decline in asset utilization efficiency or profitability challenges. It is essential for Microchip Technology Inc to assess the reasons behind this decline and take appropriate measures to enhance its asset management and operational performance to improve its return on assets in the future.