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
- Net Sales
- Net sales show a generally increasing trend over the analyzed period. Starting from approximately 847 million USD in 2005, there is a steady growth with occasional fluctuations, reaching about 6.82 billion USD in 2022. Notable jumps are seen between 2013 and 2014, and again from 2016 to 2019, indicating accelerated revenue growth phases.
- Operating Income
- Operating income exhibits a more volatile pattern compared to net sales. While it generally trends upwards from around 259 million USD in 2005 to nearly 1.85 billion USD in 2022, there are significant fluctuations in several years. Peaks occur in 2011 and 2018, with a marked dip in 2013. The substantial rise from 2017 onward suggests improved operational efficiency or cost management in the later years.
- Operating Profit Margin
- The operating profit margin fluctuates significantly across the years. It starts at 30.54% in 2005, increases to a peak of 35.17% in 2006, then generally declines with intermittent recoveries. The margin declines to a low of 8.09% in 2017, before rising again to 27.12% in 2022. This volatility indicates varying profitability efficiency relative to sales, potentially influenced by changing cost structures, market conditions, or investment phases.
- Overall Analysis
- The data reflects a company experiencing considerable growth in net sales accompanied by fluctuating profitability measures. The operating income does not consistently correlate linearly with sales increases, suggesting periods of margin compression possibly due to higher costs or strategic investments. The significant recovery in operating margins and income in the final years implies a successful turnaround or optimization in operations.
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. | Micron Technology Inc. | Monolithic Power Systems 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% | 31.54% | 29.36% | 37.31% | 35.88% | 50.63% |
| Mar 31, 2021 | 18.35% | 22.20% | 23.12% | 29.87% | 31.03% | 24.62% | 30.64% | 22.68% | 21.73% | 27.18% | 29.16% | 48.84% |
| Mar 31, 2020 | 12.27% | 14.02% | 26.74% | 25.37% | 16.80% | 30.41% | 26.62% | 14.01% | 18.81% | 26.07% | 26.58% | 40.76% |
| Mar 31, 2019 | 13.35% | 9.37% | 28.55% | 22.93% | 15.24% | 30.62% | 25.53% | 31.51% | 16.33% | 32.47% | 31.59% | 39.79% |
| Mar 31, 2018 | 23.52% | 6.97% | 30.35% | 27.80% | 24.63% | 32.91% | 29.01% | 49.34% | 19.49% | 33.05% | 3.26% | 42.53% |
| Mar 31, 2017 | 8.09% | 3.83% | 20.66% | 26.61% | 13.51% | 28.58% | 23.74% | 28.88% | 16.44% | 27.99% | 11.73% | 40.66% |
| Mar 31, 2016 | 16.21% | -8.71% | 30.05% | 19.88% | -3.09% | 21.68% | 18.25% | 1.35% | 14.01% | 14.91% | 27.57% | 35.89% |
| Mar 31, 2015 | 19.82% | -12.05% | 24.19% | 17.53% | 23.92% | 25.29% | 14.98% | 18.52% | 12.33% | 16.21% | 22.85% | 32.88% |
| Mar 31, 2014 | 23.76% | -2.82% | 26.27% | 16.75% | 10.26% | 27.47% | 14.71% | 18.87% | 12.49% | 12.01% | 28.50% | 30.26% |
| Mar 31, 2013 | 11.29% | 1.94% | 28.59% | 5.75% | 21.90% | 23.32% | 3.28% | 2.60% | 10.04% | 15.15% | 29.08% | 23.20% |
| Mar 31, 2012 | 28.67% | -19.48% | 30.51% | 4.71% | 24.62% | 27.44% | 8.92% | -7.51% | 8.08% | 16.22% | 29.72% | 15.38% |
| Mar 31, 2011 | 31.88% | 5.60% | 35.81% | 22.80% | 25.00% | 32.37% | 24.84% | 8.59% | 6.83% | 7.22% | 33.60% | 21.78% |
| Mar 31, 2010 | 25.85% | 13.06% | 32.59% | 14.49% | 22.26% | 35.73% | 19.94% | 18.73% | 13.94% | -2.97% | 29.87% | 32.32% |
| Mar 31, 2009 | 25.83% | 12.29% | 14.14% | -7.85% | 3.23% | 16.26% | -25.20% | -34.87% | 11.84% | -2.06% | 21.37% | 19.09% |
| Mar 31, 2008 | 29.13% | -33.66% | 24.20% | 16.67% | — | 23.82% | 20.58% | -27.31% | 14.02% | 20.41% | 33.48% | 19.49% |
| Mar 31, 2007 | 33.45% | -47.65% | 22.24% | 24.36% | — | 21.43% | 30.34% | -4.92% | 7.22% | 14.78% | 32.50% | 25.28% |
| Mar 31, 2006 | 35.17% | -0.83% | 21.44% | 22.04% | — | 15.97% | 24.74% | 6.64% | 1.18% | 14.32% | 35.74% | 23.62% |
| Mar 31, 2005 | 30.54% | 3.96% | 21.60% | 20.71% | — | 31.14% | 26.02% | 4.46% | 6.52% | 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).