Microchip Technology Inc (MCHP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	7,078,300	6,657,800	6,513,600	5,894,800	5,337,100
ROE		-0.04%	28.64%	34.35%	21.81%	6.55%

March 31, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $-2,700K ÷ $7,078,300K
= -0.04%

Microchip Technology Inc's return on equity (ROE) has shown significant fluctuations over the past five years. The ROE increased from 6.55% in March 2021 to 21.81% in March 2022, indicating an improvement in the company's ability to generate profits from shareholders' equity.

In the following year, by March 2023, the ROE rose even further to 34.35%, reflecting a substantial increase in profitability relative to the shareholders' investment. This strong performance suggests effective management of assets and efficient utilization of equity.

However, in March 2024, the ROE decreased to 28.64%, although still at a relatively high level compared to the starting point. This could indicate a slight reduction in profitability, but the company's ability to generate returns for its shareholders remained robust.

The most recent data point in March 2025 shows a negative ROE of -0.04%, which is a concerning development. A negative ROE implies that the company is not generating profits from its equity, potentially indicating operational challenges or financial difficulties that need to be addressed.

Overall, the trend in Microchip Technology Inc's ROE demonstrates both periods of strong performance and some noticeable fluctuations. It is important for stakeholders to closely monitor the company's financial health and performance to understand the factors driving these changes in ROE.