Micron Technology Inc (MU)
Profitability ratios
Return on sales
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|
| Gross profit margin | 22.30% | -9.31% | 45.53% | 37.84% | 30.78% |
| Operating profit margin | 5.18% | -37.78% | 31.78% | 22.81% | 14.11% |
| Pretax margin | 4.88% | -37.20% | 31.37% | 22.71% | 13.94% |
| Net profit margin | 3.09% | -38.36% | 28.46% | 21.28% | 12.62% |
The profitability ratios of Micron Technology Inc show fluctuations over the past five years. The gross profit margin has varied significantly, with a sharp decline in 2023 followed by a gradual recovery in the subsequent years. The operating profit margin also experienced a substantial negative impact in 2023 but has improved since then, indicating better cost management and operational efficiency.
Similarly, the pretax margin and net profit margin both reflect the challenging year of 2023, with significant decreases in profitability. However, there has been a positive trend in profitability margins in the last two years, with improvements in overall profitability.
Overall, the company has shown resilience in recovering from a challenging period and has managed to enhance its profitability ratios in recent years. It is important for investors and stakeholders to continue monitoring these ratios to assess the company's financial health and performance in the future.
Return on investment
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 1.88% | -8.94% | 14.64% | 10.68% | 5.59% |
| Return on assets (ROA) | 1.12% | -9.08% | 13.11% | 9.96% | 5.01% |
| Return on total capital | 2.89% | -11.94% | 19.56% | 14.65% | 8.11% |
| Return on equity (ROE) | 1.72% | -13.22% | 17.41% | 13.34% | 6.89% |
Based on the provided profitability ratios for Micron Technology Inc from 2020 to 2024, we can observe the following trends:
1. Operating return on assets (Operating ROA) has shown improvement over the years, with the ratio increasing to 1.88% in 2024 from 5.59% in 2020. This indicates that the company's operating efficiency in utilizing its assets to generate profits has been on an upward trend.
2. Return on assets (ROA) has also exhibited a similar positive trend, increasing from 5.01% in 2020 to 1.12% in 2024. This indicates that Micron Technology Inc has been able to generate more profits relative to its total assets over the years.
3. Return on total capital has shown a consistent increase from 8.11% in 2020 to 2.89% in 2024. This suggests that the company has been able to generate higher returns in proportion to the total capital employed in its operations.
4. Return on equity (ROE) has demonstrated a positive trajectory, increasing from 6.89% in 2020 to 1.72% in 2024. This indicates that the company has been successful in generating returns for its shareholders' equity.
Overall, the profitability ratios for Micron Technology Inc have shown positive improvements over the years, indicating enhanced operational efficiency and profitability. It suggests that the company has been able to effectively utilize its assets and capital to generate returns for both its shareholders and investors.