Microchip Technology Inc (MCHP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	6,657,800	7,080,200	6,968,500	6,831,300	6,513,600	6,311,600	6,103,100	5,977,900	5,894,800	5,803,300	5,702,900	5,519,900	5,337,100	5,297,000	5,443,700	5,501,300	5,585,500	5,616,600	5,361,300	5,288,300
ROE		28.64%	33.28%	36.12%	35.09%	34.35%	32.82%	30.22%	25.76%	21.81%	16.60%	11.35%	8.67%	6.55%	6.29%	11.17%	11.70%	10.22%	11.49%	7.15%	7.01%

March 31, 2024 calculation

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

The return on equity (ROE) for Microchip Technology Inc has shown a generally positive trend over the past six quarters, starting at 6.29% in December 2020 and peaking at 36.12% in September 2023. The ROE then declined slightly to 28.64% in March 2024.

This upward trend in ROE reflects the company's ability to generate higher profits relative to its shareholders' equity. A higher ROE indicates that the company is more efficient in utilizing its equity to generate profits for its shareholders.

The ROE increase from 6.29% in December 2020 to 36.12% in September 2023 indicates a significant improvement in the company's profitability and efficiency. However, the subsequent decrease to 28.64% in March 2024 suggests a potential slowdown in the company's ability to generate returns.

Overall, Microchip Technology Inc has demonstrated a strong performance in terms of return on equity, with fluctuations reflecting changes in profitability and efficiency over the analyzed period.