Microchip Technology Inc (MCHP)

Return on total capital

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	2,564,200	3,158,700	3,440,200	3,312,200	3,113,600	2,801,300	2,489,900	2,067,100	1,739,500	1,424,900	1,024,600	877,100	696,400	635,200	662,200	663,200	647,700	773,900	836,200	752,300
Long-term debt	US$ in thousands	5,000,400	4,033,300	4,414,700	4,632,200	5,041,700	6,588,700	6,304,900	7,563,900	7,687,400	7,868,500	8,200,600	8,527,400	7,581,200	7,647,800	8,181,400	7,730,000	8,873,400	8,179,700	8,415,300	8,711,400
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
Return on total capital		21.99%	28.42%	30.22%	28.89%	26.95%	21.71%	20.07%	15.26%	12.81%	10.42%	7.37%	6.24%	5.39%	4.91%	4.86%	5.01%	4.48%	5.61%	6.07%	5.37%

March 31, 2024 calculation

Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $2,564,200K ÷ ($5,000,400K + $6,657,800K)
= 21.99%

Microchip Technology Inc's return on total capital has shown a fluctuating trend over the past few quarters. The company experienced a significant increase in return on total capital from December 2023 to September 2023, reaching a peak of 30.22%. However, this was followed by a slight decline in the subsequent quarter to 28.89%. Despite some fluctuations, the return on total capital has generally been on an upward trajectory since September 2021, reflecting improved efficiency in generating profits from the company's total capital. The latest figure for March 2024 stands at 21.99%, indicating that Microchip continues to deliver strong returns on its invested capital.