Operating Profit Margin
since 2005
Calculation
Microchip Technology Inc., operating profit margin, long-term trends, calculation
| Operating profit margin | = | 100 | × | Operating income1 | ÷ | Net sales1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 27.12% | = | 100 | × | 1,849,600) | ÷ | 6,820,900) |
| Mar 31, 2021 | 18.35% | = | 100 | × | 998,100) | ÷ | 5,438,400) |
| Mar 31, 2020 | 12.27% | = | 100 | × | 647,100) | ÷ | 5,274,200) |
| Mar 31, 2019 | 13.35% | = | 100 | × | 714,300) | ÷ | 5,349,500) |
| Mar 31, 2018 | 23.52% | = | 100 | × | 936,300) | ÷ | 3,980,800) |
| Mar 31, 2017 | 8.09% | = | 100 | × | 275,817) | ÷ | 3,407,807) |
| Mar 31, 2016 | 16.21% | = | 100 | × | 352,345) | ÷ | 2,173,334) |
| Mar 31, 2015 | 19.82% | = | 100 | × | 425,620) | ÷ | 2,147,036) |
| Mar 31, 2014 | 23.76% | = | 100 | × | 458,864) | ÷ | 1,931,217) |
| Mar 31, 2013 | 11.29% | = | 100 | × | 178,553) | ÷ | 1,581,623) |
| Mar 31, 2012 | 28.67% | = | 100 | × | 396,516) | ÷ | 1,383,176) |
| Mar 31, 2011 | 31.88% | = | 100 | × | 474,183) | ÷ | 1,487,205) |
| Mar 31, 2010 | 25.85% | = | 100 | × | 244,959) | ÷ | 947,729) |
| Mar 31, 2009 | 25.83% | = | 100 | × | 233,328) | ÷ | 903,297) |
| Mar 31, 2008 | 29.13% | = | 100 | × | 301,665) | ÷ | 1,035,737) |
| Mar 31, 2007 | 33.45% | = | 100 | × | 347,811) | ÷ | 1,039,671) |
| Mar 31, 2006 | 35.17% | = | 100 | × | 326,364) | ÷ | 927,893) |
| Mar 31, 2005 | 30.54% | = | 100 | × | 258,647) | ÷ | 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 operational profitability of the entity exhibited significant volatility over the seventeen-year period ending March 31, 2022, characterized by distinct cycles of contraction and recovery despite a consistent long-term increase in net sales.
- Initial Performance and Early Contractions (2005–2010)
- Operating margins remained relatively robust between 2005 and 2007, peaking at 35.17% in 2006. A subsequent decline occurred through 2009, where margins reached a local low of 25.83%, coinciding with a dip in net sales. A stabilization period followed in 2010 at 25.85%.
- Mid-Term Volatility and Margin Compression (2011–2017)
- Following a recovery to 31.88% in 2011, a period of instability ensued. A sharp drop to 11.29% was recorded in 2013. Despite a temporary rebound to 23.76% in 2014, a multi-year downward trend followed, culminating in a period-low operating profit margin of 8.09% in 2017. This phase is notable because net sales grew from 1.49 billion to 3.41 billion, indicating that operating expenses increased at a rate exceeding revenue growth during this window.
- Recent Recovery and Expansion (2018–2022)
- A significant recovery began in 2018 with a jump to 23.52%. Although margins experienced a secondary decline to 12.27% by 2020, the period concluded with a strong upward trajectory. By March 31, 2022, the operating profit margin reached 27.12%, supported by the highest recorded net sales of 6.82 billion and operating income of 1.85 billion.
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Comparison to Competitors
Microchip Technology Inc., operating 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. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 27.12% | 5.36% | 27.29% | 30.20% | 42.84% | 3.70% | 31.24% | -7.79% | 31.54% | 37.31% | 35.88% | 50.63% |
| Mar 31, 2021 | 18.35% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | -8.70% | 22.68% | 27.18% | 29.16% | 48.84% |
| Mar 31, 2020 | 12.27% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | -9.02% | 14.01% | 26.07% | 26.58% | 40.76% |
| Mar 31, 2019 | 13.35% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 1.51% | 31.51% | 32.47% | 31.59% | 39.79% |
| Mar 31, 2018 | 23.52% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 17.84% | 49.34% | 33.05% | 3.26% | 42.53% |
| Mar 31, 2017 | 8.09% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 4.31% | 28.88% | 27.99% | 11.73% | 40.66% |
| Mar 31, 2016 | 16.21% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | -29.96% | 1.35% | 14.91% | 27.57% | 35.89% |
| Mar 31, 2015 | 19.82% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 11.03% | 18.52% | 16.21% | 22.85% | 32.88% |
| Mar 31, 2014 | 23.76% | -2.82% | 26.27% | 16.75% | 10.26% | 27.47% | 14.71% | 8.24% | 18.87% | 12.01% | 28.50% | 30.26% |
| Mar 31, 2013 | 11.29% | 1.94% | 28.59% | 5.75% | 21.90% | 23.32% | 3.28% | 9.30% | 2.60% | 15.15% | 29.08% | 23.20% |
| Mar 31, 2012 | 28.67% | -19.48% | 30.51% | 4.71% | 24.62% | 27.44% | 8.92% | 17.81% | -7.51% | 16.22% | 29.72% | 15.38% |
| Mar 31, 2011 | 31.88% | 5.60% | 35.81% | 22.80% | 25.00% | 32.37% | 24.84% | 24.95% | 8.59% | 7.22% | 33.60% | 21.78% |
| Mar 31, 2010 | 25.85% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 11.90% | 18.73% | -2.97% | 29.87% | 32.32% |
| Mar 31, 2009 | 25.83% | 12.29% | 14.14% | -7.85% | 3.23% | 16.26% | -25.20% | 5.60% | -34.87% | -2.06% | 21.37% | 19.09% |
| Mar 31, 2008 | 29.13% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -3.65% | -27.31% | 20.41% | 33.48% | 19.49% |
| Mar 31, 2007 | 33.45% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | 0.05% | -4.92% | 14.78% | 32.50% | 25.28% |
| Mar 31, 2006 | 35.17% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 21.54% | 6.64% | 14.32% | 35.74% | 23.62% |
| Mar 31, 2005 | 30.54% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 13.22% | 4.46% | 5.65% | 42.06% | 20.84% |
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).