Stock Analysis on Net
Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

Income Statement

The income statement presents information on the financial results of a company business activities over a period of time. The income statement communicates how much revenue the company generated during a period and what cost it incurred in connection with generating that revenue.

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Microchip Technology Inc., consolidated income statement

US$ in thousands

Microsoft Excel
12 months ended: Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Net sales
Cost of sales
Gross profit
Research and development
Selling, general and administrative
Amortization of acquired intangible assets
Employee separation costs
Gain on sale of assets
Impairment charges
Contract exit costs
Wafer fabrication restructuring
Other
Restructuring
Legal contingencies
Contingent consideration revaluation
Non-restructuring contract exit costs and other
Special charges and other, net
Operating expenses
Operating income
Losses on equity method investments
Interest income
Interest expense
Loss on settlement of debt
Other income (expense)
Other income (loss), net
Income before income taxes
Income tax (provision) benefit
Net income from continuing operations
Net loss from discontinued operations
Net income

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

The analysis of the financial data over the six-year period reveals several notable trends and fluctuations in company performance and expenses.

Net Sales and Gross Profit
Net sales demonstrated a strong upward trend, rising significantly from approximately 3.41 billion USD in 2017 to over 6.82 billion USD in 2022. Correspondingly, gross profit increased from around 1.76 billion USD in 2017 to nearly 4.45 billion USD in 2022, indicating improved profitability linked with revenue growth. The gross profit margin expansion reflects effective cost control or favorable sales mix.
Cost of Sales
Cost of sales fluctuated but generally increased in nominal terms, from approximately 1.65 billion USD in 2017 to about 2.37 billion USD in 2022. Despite this increase, gross profit growth outpaced cost of sales, suggesting improvements in operational efficiency or pricing power.
Operating Expenses
Operating expenses also rose significantly, peaking in 2020 and 2022 near 2.6 billion USD. Research and development expenses increased from about 545 million USD in 2017 to nearly 990 million USD in 2022, signifying sustained investment in innovation. Selling, general and administrative expenses showed less consistent movement but stayed close to 600-700 million USD range in recent years. Amortization of acquired intangible assets increased sharply by 2020 but receded slightly thereafter, indicating acquisitions impact.
Special Charges and Other Operating Items
Special charges and other net expenses fluctuated, with occasional significant restructuring and contract exit costs influencing results. Impairment charges appeared sporadically, highest in 2019 and negligible in later years. Legal contingencies and contract exit costs showed irregular impacts, with decreases in recent periods. Gains on sale of assets were small but positive in later years.
Operating Income
Operating income experienced variability with a notable dip in 2019 and 2020, followed by substantial growth reaching approximately 1.85 billion USD in 2022, the highest reported figure. This recovery aligns with strong top-line expansion and controlled expense growth.
Interest and Other Income/Expense Items
Interest income remained relatively minor compared to interest expense, which declined substantially from about 146 million USD in 2017 to 257 million USD in 2022. Loss on settlement of debt fluctuated, peaking notably in 2021. Other income (expense) items showed large negative values for most years but improved slightly in 2022, which contributed positively to pre-tax income trends.
Income Before Taxes and Net Income
Income before income taxes rose overall, showing a sharp increase from 2017 to 2018, a dip in subsequent years, and finally reaching a peak of about 1.48 billion USD in 2022. Income tax provision was volatile, with negative provisions (benefits) in some years and positive charges in others, reflecting complex tax circumstances. Consequently, net income from continuing operations grew from approximately 171 million USD in 2017 to about 1.29 billion USD in 2022, marking substantial profitability improvement.
Discontinued Operations
Net loss from discontinued operations was recorded only in 2017 and has been absent in later years, simplifying the income profile.

Overall, the data indicate significant growth in revenue and profitability over the period, supported by sustained investment in research and development and effective cost management. Some volatility in special charges, tax provisions, and financing costs suggests areas to monitor, but the general trajectory shows enhanced financial strength and operational performance.