Microchip Technology Inc (MCHP)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	-2,700	308,800	781,600	1,369,800	1,906,900	2,356,200	2,517,300	2,396,900	2,237,700	2,071,600	1,844,100	1,539,900	1,285,500	963,600	647,000	478,600	349,400	333,300	608,200	643,500
Total assets	US$ in thousands	—	15,632,200	15,622,300	15,839,700	15,873,200	16,143,000	16,601,400	16,494,600	16,370,300	16,116,100	16,141,100	16,208,400	16,199,500	16,047,200	16,215,000	16,277,800	16,478,800	16,576,100	16,770,900	17,028,100
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%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $-2,700K ÷ $—K
= —

Microchip Technology Inc's return on assets (ROA) has shown volatility over the past few years. The ROA stood at 3.78% as of June 30, 2020, decreased slightly to 3.63% by September 30, 2020, and then dropped notably to 2.01% by December 31, 2020. However, there was a slight improvement in ROA to 2.12% by March 31, 2021.

Despite the fluctuations, Microchip's ROA started gaining momentum from June 30, 2021, when it increased to 2.94% and continued to rise consistently, reaching 15.16% by September 30, 2023. This upward trend showed the company was utilizing its assets more efficiently to generate profits.

The peak ROA was recorded at 15.16% as of September 30, 2023, after which there was a slight decline to 14.60% by December 31, 2023. There was a more significant drop to 12.01% by March 31, 2024, and a further decline to 8.65% by June 30, 2024, and to 5.00% by September 30, 2024.

The ROA fell sharply to 1.98% by December 31, 2024, indicating a potential decrease in profitability relative to its assets. However, the data for March 31, 2025, is missing, leaving uncertainty about the company's recent performance.

Overall, Microchip Technology Inc's ROA has fluctuated significantly, with periods of both growth and decline. It is essential for the company to sustain or improve its ROA to demonstrate efficient utilization of assets and continued profitability.