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
- Net Income
- Net income showed a general upward trend with notable fluctuations. Starting at 213,785 thousand USD in 2005, it peaked at 418,950 thousand USD in 2011 before experiencing a significant decline to 127,389 thousand USD in 2013. After recovering sharply in 2014 to 395,281 thousand USD, net income trended downward until 2017, reaching 164,639 thousand USD. From 2018 onward, there was a strong recovery, culminating in a peak of 1,285,500 thousand USD in 2022, the highest value observed in the period.
- Net Sales
- Net sales demonstrated consistent growth over the entire period. Beginning at 846,936 thousand USD in 2005, sales rose steadily with minor fluctuations, reaching 2,173,334 thousand USD by 2016. A substantial increase occurred from 2017 onward, with sales climbing sharply from 3,407,807 thousand USD in 2017 to 6,820,900 thousand USD in 2022. This indicates strong revenue expansion, particularly in the latter years of the dataset.
- Net Profit Margin
- The net profit margin showed considerable variability. Initially, it remained relatively high, fluctuating between approximately 23% and 34% from 2005 to 2011. Following that period, there was a marked decline to single-digit percentages between 2013 and 2019, hitting a low of 4.83% in 2017. From 2020 onward, the margin improved substantially, reaching 18.85% in 2022, although it remained below the peak margins observed in the earlier years. This trend suggests challenges in maintaining profitability relative to sales during the middle years, followed by a recovery phase.
- Overall Insights
- The data reflects a company experiencing rapid revenue growth, especially after 2016, with net sales nearly tripling by 2022 compared to 2005. However, net income and profit margins exhibit more volatility. Periods of strong profitability in the early years gave way to declines in both absolute income and margin, possibly reflecting increased costs, investments, or competitive pressures. The strong rebound in both net income and profit margin from 2020 to 2022 indicates improved operational efficiency or favorable market conditions, resulting in record profitability despite already high sales levels.
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. | 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% | 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% | 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% | 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% | 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% | 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% | 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% | -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% | 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% | 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% | 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% | -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% | 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% | 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% | -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% | -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% | -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% | 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% | 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% | 25.54% |
| Mar 31, 2021 | 6.42% | 25.83% |
| Mar 31, 2020 | 10.82% | 23.10% |
| Mar 31, 2019 | 6.65% | 24.49% |
| Mar 31, 2018 | 6.42% | 27.65% |
| Mar 31, 2017 | 4.83% | 17.11% |
| Mar 31, 2016 | 14.91% | 14.20% |
| Mar 31, 2015 | 17.19% | 18.44% |
| Mar 31, 2014 | 20.47% | 19.81% |
| Mar 31, 2013 | 8.05% | 17.60% |
| Mar 31, 2012 | 24.34% | 15.90% |
| Mar 31, 2011 | 28.17% | 20.36% |
| Mar 31, 2010 | 22.90% | 21.68% |
| Mar 31, 2009 | 27.55% | 6.12% |
| Mar 31, 2008 | 28.75% | 9.71% |
| Mar 31, 2007 | 34.34% | 14.03% |
| Mar 31, 2006 | 26.12% | 17.67% |
| Mar 31, 2005 | 25.24% | 19.11% |
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% | 22.45% |
| Mar 31, 2021 | 6.42% | 23.62% |
| Mar 31, 2020 | 10.82% | 19.67% |
| Mar 31, 2019 | 6.65% | 19.85% |
| Mar 31, 2018 | 6.42% | 18.57% |
| Mar 31, 2017 | 4.83% | 17.85% |
| Mar 31, 2016 | 14.91% | 17.79% |
| Mar 31, 2015 | 17.19% | 18.37% |
| Mar 31, 2014 | 20.47% | 19.38% |
| Mar 31, 2013 | 8.05% | 20.20% |
| Mar 31, 2012 | 24.34% | 20.07% |
| Mar 31, 2011 | 28.17% | 20.67% |
| Mar 31, 2010 | 22.90% | 20.23% |
| Mar 31, 2009 | 27.55% | 14.52% |
| Mar 31, 2008 | 28.75% | 15.20% |
| Mar 31, 2007 | 34.34% | 15.81% |
| Mar 31, 2006 | 26.12% | 16.23% |
| Mar 31, 2005 | 25.24% | 16.66% |
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).