Micron Technology Inc (MU)

Net profit margin

Aug 31, 2024 Aug 29, 2024 Aug 31, 2023 Sep 1, 2022 Aug 31, 2022
Net income US$ in thousands 778,000 778,000 -5,833,000 8,687,000 8,687,000
Revenue US$ in thousands 25,111,000 25,170,000 15,540,000 30,527,000 30,758,000
Net profit margin 3.10% 3.09% -37.54% 28.46% 28.24%

August 31, 2024 calculation

Net profit margin = Net income ÷ Revenue
= $778,000K ÷ $25,111,000K
= 3.10%

Net profit margin is a key financial ratio that indicates a company's profitability by measuring the percentage of revenue that translates into profit after all expenses have been deducted. Analyzing the net profit margin trend of Micron Technology Inc over the years from August 31, 2022, to August 31, 2024, reveals fluctuations and a significant decline in profitability.

As of August 31, 2022, Micron had a net profit margin of 28.24%, indicating that the company was able to convert 28.24% of its revenue into profit. This figure slightly increased to 28.46% as of September 1, 2022, showing sustained profitability in the short term.

However, the net profit margin took a sharp downturn by August 31, 2023, plummeting to -37.54%. A negative net profit margin suggests that the company incurred a net loss during that period, which raises concerns about its ability to generate profits and manage expenses effectively.

Fortunately, Micron was able to recover from this loss as of August 29, 2024, when its net profit margin improved to 3.09%. The marginal increase to 3.10% by August 31, 2024, demonstrates a gradual stabilization in profitability, although it still remains relatively low compared to the earlier periods.

In conclusion, while Micron Technology Inc experienced fluctuations in its net profit margin over the years, including a significant decline in profitability in 2023, the company has shown signs of recovery and stability in more recent periods. It is essential for investors and stakeholders to monitor these trends closely to assess the company's financial performance and sustainability.


See also:

Micron Technology Inc Net Profit Margin