Microchip Technology Inc (MCHP)
Return on total capital
| 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 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 394,900 | 648,100 | 1,156,000 | 1,892,200 | 2,575,300 | 3,172,200 | 3,456,700 | 3,329,300 | 3,121,400 | 2,808,300 | 2,496,900 | 2,067,100 | 1,739,500 | 1,424,900 | 1,170,900 | 1,023,400 | 842,700 | 781,500 | 662,200 | 667,100 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| 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 |
| Return on total capital | — | 10.75% | 18.42% | 29.54% | 38.68% | 44.80% | 49.60% | 48.74% | 47.92% | 44.49% | 40.91% | 34.58% | 29.51% | 24.55% | 20.53% | 18.54% | 15.79% | 14.75% | 12.16% | 12.13% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $394,900K ÷ ($—K + $—K)
= —
Microchip Technology Inc's return on total capital has shown a positive trend over the period from June 30, 2020, to March 31, 2024. The ratio increased steadily from 12.13% in June 2020 to a peak of 49.60% in September 30, 2023, reflecting strong performance in utilizing its total capital effectively to generate returns.
However, there was a notable decline in the return on total capital from this peak, dropping to 10.75% by December 31, 2024. This decrease could raise concerns about the company's ability to maintain high returns on the capital it deploys. The data for March 31, 2025 is not available.
Overall, Microchip Technology Inc's return on total capital has exhibited both positive growth and fluctuations, indicating fluctuations in the company's capital efficiency and profitability over the analyzed period. It would be important to closely monitor future financial reports to understand the factors influencing these changes in the return on total capital.
Peer comparison
Mar 31, 2025