Microchip Technology Inc (MCHP)

Return on assets (ROA)

		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
Net income (ttm)	US$ in thousands	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	570,600	645,400	383,500	370,900
Total assets	US$ in thousands	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	17,426,100	17,588,600	17,858,500	18,246,400
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%

March 31, 2024 calculation

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

Microchip Technology Inc's return on assets (ROA) has shown a generally positive trend over the past several quarters, indicating effective asset utilization and profitability. The ROA has been consistently increasing from 2.03% in Jun 2019 to 14.60% in Dec 2023. This suggests that the company has been able to generate more earnings relative to its total assets as time has progressed.

The ROA peaked at 15.16% in Sep 2023, reflecting a strong performance in converting assets into net income. Despite a slight decrease in the most recent quarter to 12.01% in Mar 2024, the overall upward trajectory is a positive indicator of the company's operational efficiency and profitability.

The substantial improvement in ROA from 2.03% in Jun 2019 to 14.60% in Dec 2023 signifies enhanced productivity and effective management of assets by Microchip Technology Inc. This trend suggests that the company has been successful in maximizing returns on its investments and is generating significant profits relative to its asset base.