Microchip Technology Inc (MCHP)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	—	6,031,500	6,275,900	6,406,000	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
ROE		—	5.12%	12.45%	21.38%	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%

March 31, 2025 calculation

ROE = Net income (ttm) ÷ Total stockholders’ equity
= $-2,700K ÷ $—K
= —

Microchip Technology Inc's return on equity (ROE) has shown a fluctuating trend over the past few years. From June 30, 2020, to September 30, 2021, the ROE remained relatively stable between 11% and 8%, indicating a moderate performance in generating returns for shareholders. However, there was a significant improvement in ROE from December 31, 2021, to June 30, 2023, with the metric increasing steadily from 16.60% to 35.09%. This sharp rise suggests an enhanced efficiency in utilizing shareholder equity to generate profits during this period.

Subsequently, the ROE declined from June 30, 2023, to December 31, 2024, dropping to 5.12% by the end of December 2024. This decline may indicate potential challenges or inefficiencies in the company's operations or capital structure during this period. Moreover, the latest available data as of March 31, 2025, is missing, suggesting that the ROE for this quarter is not provided in the dataset.

Overall, the analysis of Microchip Technology Inc's ROE highlights periods of both strong performance and potential concerns regarding the company's ability to generate sufficient returns for its shareholders. It is essential to monitor future ROE figures to assess the company's financial health and efficiency in utilizing shareholder equity effectively.