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.
Peer comparison
Aug 31, 2024