Net Profit Margin
since 2005
Calculation
Microchip Technology Inc., net profit margin, long-term trends, calculation
| Net profit margin | = | 100 | × | Net income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 18.85% | = | 100 | × | 1,285,500) | ÷ | 6,820,900) |
| Mar 31, 2021 | 6.42% | = | 100 | × | 349,400) | ÷ | 5,438,400) |
| Mar 31, 2020 | 10.82% | = | 100 | × | 570,600) | ÷ | 5,274,200) |
| Mar 31, 2019 | 6.65% | = | 100 | × | 355,900) | ÷ | 5,349,500) |
| Mar 31, 2018 | 6.42% | = | 100 | × | 255,400) | ÷ | 3,980,800) |
| Mar 31, 2017 | 4.83% | = | 100 | × | 164,639) | ÷ | 3,407,807) |
| Mar 31, 2016 | 14.91% | = | 100 | × | 324,132) | ÷ | 2,173,334) |
| Mar 31, 2015 | 17.19% | = | 100 | × | 369,009) | ÷ | 2,147,036) |
| Mar 31, 2014 | 20.47% | = | 100 | × | 395,281) | ÷ | 1,931,217) |
| Mar 31, 2013 | 8.05% | = | 100 | × | 127,389) | ÷ | 1,581,623) |
| Mar 31, 2012 | 24.34% | = | 100 | × | 336,705) | ÷ | 1,383,176) |
| Mar 31, 2011 | 28.17% | = | 100 | × | 418,950) | ÷ | 1,487,205) |
| Mar 31, 2010 | 22.90% | = | 100 | × | 217,005) | ÷ | 947,729) |
| Mar 31, 2009 | 27.55% | = | 100 | × | 248,820) | ÷ | 903,297) |
| Mar 31, 2008 | 28.75% | = | 100 | × | 297,748) | ÷ | 1,035,737) |
| Mar 31, 2007 | 34.34% | = | 100 | × | 357,029) | ÷ | 1,039,671) |
| Mar 31, 2006 | 26.12% | = | 100 | × | 242,369) | ÷ | 927,893) |
| Mar 31, 2005 | 25.24% | = | 100 | × | 213,785) | ÷ | 846,936) |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$ in thousands
The net profit margin of Microchip Technology Inc. exhibited significant volatility over the seventeen-year period ending March 31, 2022. While net sales demonstrated a consistent and substantial upward trajectory, the ability to convert those sales into net income fluctuated markedly, transitioning from a period of high stability and profitability to a phase of margin compression and subsequent partial recovery.
- Early Performance and Peak Profitability (2005–2012)
- During the initial phase, margins remained relatively strong, peaking at 34.34% in 2007. For the majority of this period, the net profit margin fluctuated between 22.90% and 34.34%, indicating a high level of operational efficiency relative to sales volume.
- Margin Contraction and Trough (2013–2017)
- A sharp decline in profitability is observed starting in 2013, when the net profit margin dropped to 8.05%. This downward trend persisted through 2017, reaching a historical low of 4.83%, despite a concurrent and significant increase in total net sales.
- Recent Volatility and Recovery (2018–2022)
- The period from 2018 to 2022 was characterized by fluctuation and a gradual return to higher profitability. Following several years of margins remaining in the 6% to 10% range, a substantial increase to 18.85% was recorded by March 31, 2022, coinciding with the highest recorded net sales of 6.82 billion US dollars.
- Relationship Between Revenue Growth and Profitability
- An inverse relationship between sales growth and margin percentage is evident between 2014 and 2017. During this window, net sales grew from approximately 1.93 billion to 3.41 billion US dollars, yet the net profit margin decreased from 20.47% to 4.83%. This suggests that the increase in scale during this specific period was accompanied by disproportionately higher operating expenses or pricing pressures that eroded bottom-line efficiency.
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Comparison to Competitors
Microchip Technology Inc., net profit margin, long-term trends, comparison to competitors
| Microchip Technology Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 18.85% | 5.59% | 22.88% | 25.31% | 34.62% | 12.71% | 36.06% | 26.73% | -9.44% | 28.24% | 36.23% | 29.27% | 43.68% |
| Mar 31, 2021 | 6.42% | 19.24% | 19.00% | 25.53% | 24.54% | 25.14% | 30.04% | 26.72% | -9.34% | 21.16% | 25.98% | 26.94% | 42.35% |
| Mar 31, 2020 | 10.82% | 25.50% | 21.79% | 21.04% | 12.39% | 26.84% | 20.96% | 22.42% | 58.70% | 12.54% | 25.61% | 22.09% | 38.69% |
| Mar 31, 2019 | 6.65% | 5.07% | 22.75% | 18.52% | 12.05% | 29.25% | 25.73% | 22.70% | -6.25% | 26.97% | 35.34% | 18.07% | 34.88% |
| Mar 31, 2018 | 6.42% | 5.20% | 24.12% | 19.20% | 58.80% | 29.72% | 19.87% | 21.49% | 21.62% | 46.51% | 31.37% | -21.40% | 35.35% |
| Mar 31, 2017 | 4.83% | 0.81% | 14.24% | 23.62% | 9.59% | 15.30% | 26.61% | 21.19% | 0.91% | 25.04% | 24.11% | 11.06% | 24.61% |
| Mar 31, 2016 | 14.91% | -11.63% | 25.18% | 15.90% | -13.13% | 17.37% | 23.60% | 15.53% | -29.77% | -2.23% | 12.26% | 24.22% | 26.89% |
| Mar 31, 2015 | 17.19% | -16.54% | 20.29% | 14.26% | 19.99% | 20.63% | 13.01% | 12.47% | 11.74% | 17.90% | 13.47% | 20.85% | 22.97% |
| Mar 31, 2014 | 20.47% | -7.32% | 21.97% | 11.82% | 6.16% | 20.95% | 19.89% | 13.72% | 9.26% | 18.61% | 10.65% | 30.08% | 21.63% |
| Mar 31, 2013 | 8.05% | -1.57% | 25.57% | 3.41% | 21.90% | 18.25% | 19.11% | 3.16% | 9.68% | 13.12% | 13.14% | 27.56% | 17.71% |
| Mar 31, 2012 | 24.34% | -21.82% | 24.11% | 1.25% | 23.82% | 20.63% | 23.83% | 6.33% | 18.13% | -12.53% | 14.53% | 31.95% | 13.72% |
| Mar 31, 2011 | 28.17% | 7.48% | 28.98% | 18.31% | 23.63% | 23.97% | 25.02% | 22.35% | 25.03% | 1.90% | 7.14% | 28.48% | 16.28% |
| Mar 31, 2010 | 22.90% | 7.25% | 25.79% | 9.82% | 19.83% | 26.28% | 11.66% | 16.25% | 12.59% | 21.81% | -2.04% | 29.54% | 23.11% |
| Mar 31, 2009 | 27.55% | 5.63% | 12.30% | -6.09% | -2.96% | 12.44% | -34.43% | -27.08% | 4.99% | -38.21% | -0.88% | 15.28% | 14.10% |
| Mar 31, 2008 | 28.75% | -53.34% | 30.44% | 11.82% | — | 14.08% | 14.24% | 17.75% | -3.95% | -27.72% | 19.46% | 28.36% | 15.36% |
| Mar 31, 2007 | 34.34% | -56.19% | 19.52% | 17.57% | — | 18.20% | 19.34% | 26.72% | -0.54% | -5.63% | 14.63% | 37.23% | 19.20% |
| Mar 31, 2006 | 26.12% | -2.94% | 21.35% | 16.54% | — | 14.26% | 18.37% | 20.45% | 19.84% | 7.74% | 12.74% | 32.82% | 30.45% |
| Mar 31, 2005 | 25.24% | 2.83% | 17.36% | 17.30% | — | 22.31% | 22.38% | 19.92% | 11.57% | 3.85% | 4.99% | 37.78% | 17.35% |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Microchip Technology Inc., net profit margin, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Microchip Technology Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Mar 31, 2022 | 18.85% | 25.04% |
| Mar 31, 2021 | 6.42% | 25.45% |
| Mar 31, 2020 | 10.82% | 23.53% |
| Mar 31, 2019 | 6.65% | 24.08% |
| Mar 31, 2018 | 6.42% | 27.58% |
| Mar 31, 2017 | 4.83% | 16.90% |
| Mar 31, 2016 | 14.91% | 13.44% |
| Mar 31, 2015 | 17.19% | 18.27% |
| Mar 31, 2014 | 20.47% | 19.57% |
| Mar 31, 2013 | 8.05% | 17.41% |
| Mar 31, 2012 | 24.34% | 15.96% |
| Mar 31, 2011 | 28.17% | 20.49% |
| Mar 31, 2010 | 22.90% | 21.44% |
| Mar 31, 2009 | 27.55% | 6.08% |
| Mar 31, 2008 | 28.75% | 9.29% |
| Mar 31, 2007 | 34.34% | 13.69% |
| Mar 31, 2006 | 26.12% | 17.71% |
| Mar 31, 2005 | 25.24% | 19.00% |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Industry (Information Technology)
Microchip Technology Inc., net profit margin, long-term trends, comparison to industry (information technology)
| Microchip Technology Inc. | Information Technology | |
|---|---|---|
| Mar 31, 2022 | 18.85% | 22.27% |
| Mar 31, 2021 | 6.42% | 23.48% |
| Mar 31, 2020 | 10.82% | 19.76% |
| Mar 31, 2019 | 6.65% | 19.73% |
| Mar 31, 2018 | 6.42% | 18.59% |
| Mar 31, 2017 | 4.83% | 17.77% |
| Mar 31, 2016 | 14.91% | 17.58% |
| Mar 31, 2015 | 17.19% | 18.32% |
| Mar 31, 2014 | 20.47% | 19.33% |
| Mar 31, 2013 | 8.05% | 20.15% |
| Mar 31, 2012 | 24.34% | 20.07% |
| Mar 31, 2011 | 28.17% | 20.71% |
| Mar 31, 2010 | 22.90% | 20.19% |
| Mar 31, 2009 | 27.55% | 14.45% |
| Mar 31, 2008 | 28.75% | 15.07% |
| Mar 31, 2007 | 34.34% | 15.71% |
| Mar 31, 2006 | 26.12% | 16.26% |
| Mar 31, 2005 | 25.24% | 16.64% |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).