Microchip Technology Inc (MCHP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,657,800	6,513,600	5,894,800	5,337,100	5,585,500
ROE		28.64%	34.35%	21.81%	6.55%	10.22%

March 31, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,906,900K ÷ $6,657,800K
= 28.64%

Microchip Technology Inc's return on equity (ROE) has shown a fluctuating trend over the past five years. In fiscal year 2024, the company's ROE stood at 28.64%, marking a decrease from the previous year's figure of 34.35%. Despite the decrease, the ROE remains at a relatively high level, indicating that the company is generating substantial returns for its shareholders.

The ROE experienced a significant improvement from fiscal year 2021 to fiscal year 2022, increasing from 6.55% to 21.81%. This surge suggests that the company may have made effective strategic decisions or operational improvements during this period, leading to higher returns on equity.

Overall, Microchip Technology Inc's ROE performance demonstrates a mix of fluctuations and improvements over the years, reflecting the company's ability to effectively utilize its equity to generate profits for its shareholders.