Return on Assets (ROA)
since 2005
Calculation
Microchip Technology Inc., ROA, long-term trends, calculation
| ROA | = | 100 | × | Net income1 | ÷ | Total assets1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 7.94% | = | 100 | × | 1,285,500) | ÷ | 16,199,500) |
| Mar 31, 2021 | 2.12% | = | 100 | × | 349,400) | ÷ | 16,478,800) |
| Mar 31, 2020 | 3.27% | = | 100 | × | 570,600) | ÷ | 17,426,100) |
| Mar 31, 2019 | 1.94% | = | 100 | × | 355,900) | ÷ | 18,350,000) |
| Mar 31, 2018 | 3.09% | = | 100 | × | 255,400) | ÷ | 8,257,200) |
| Mar 31, 2017 | 2.14% | = | 100 | × | 164,639) | ÷ | 7,686,881) |
| Mar 31, 2016 | 5.82% | = | 100 | × | 324,132) | ÷ | 5,567,515) |
| Mar 31, 2015 | 7.72% | = | 100 | × | 369,009) | ÷ | 4,780,713) |
| Mar 31, 2014 | 9.72% | = | 100 | × | 395,281) | ÷ | 4,067,630) |
| Mar 31, 2013 | 3.31% | = | 100 | × | 127,389) | ÷ | 3,851,405) |
| Mar 31, 2012 | 10.92% | = | 100 | × | 336,705) | ÷ | 3,083,776) |
| Mar 31, 2011 | 14.12% | = | 100 | × | 418,950) | ÷ | 2,968,058) |
| Mar 31, 2010 | 8.62% | = | 100 | × | 217,005) | ÷ | 2,516,313) |
| Mar 31, 2009 | 10.28% | = | 100 | × | 248,820) | ÷ | 2,421,439) |
| Mar 31, 2008 | 11.85% | = | 100 | × | 297,748) | ÷ | 2,512,307) |
| Mar 31, 2007 | 15.73% | = | 100 | × | 357,029) | ÷ | 2,269,541) |
| Mar 31, 2006 | 10.31% | = | 100 | × | 242,369) | ÷ | 2,350,596) |
| Mar 31, 2005 | 11.76% | = | 100 | × | 213,785) | ÷ | 1,817,554) |
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 Return on Assets (ROA) exhibits a long-term downward trajectory from 2005 through 2021, followed by a notable recovery in 2022. Asset utilization efficiency peaked early in the observed period before entering a prolonged phase of compression driven by a significant expansion of the total asset base.
- Early Performance and Peak Efficiency (2005–2012)
- During this interval, the organization maintained relatively high asset efficiency, with ROA fluctuating between 8.62% and 15.73%. The peak occurred in 2007, with ROA reaching 15.73% supported by a net income of $357 million. Throughout these years, the total asset base remained relatively stable, generally staying below $3.1 billion, which facilitated the maintenance of double-digit returns.
- Structural Decline and Asset Expansion (2013–2021)
- A significant shift began in 2013, marked by a sharp decline in ROA to 3.31%. Although net income recovered in subsequent years, ROA continued a general downward trend, reaching a nadir of 1.94% in 2019. This compression is primarily attributed to a massive increase in total assets, which surged from approximately $8.2 billion in 2018 to over $18.3 billion in 2019. The rapid expansion of the balance sheet significantly outpaced net income growth, resulting in a dilution of overall asset productivity.
- Recent Recovery and Profitability Surge (2022)
- The most recent fiscal year indicates a strong reversal of the prior downward trend. Net income increased substantially to $1.285 billion, the highest value in the recorded period. This surge in profitability, occurring alongside a slight contraction in total assets to $16.199 billion, resulted in ROA rising to 7.94%, representing the most significant improvement in asset efficiency since 2014.
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Comparison to Competitors
Microchip Technology Inc., ROA, 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 | 7.94% | 1.95% | 5.46% | 24.41% | 15.69% | 4.40% | 26.37% | 26.78% | -1.90% | 13.11% | 22.07% | 26.39% | 32.16% |
| Mar 31, 2021 | 2.12% | 25.46% | 2.66% | 22.80% | 8.91% | 11.80% | 20.23% | 24.59% | -2.58% | 9.96% | 15.05% | 21.93% | 31.48% |
| Mar 31, 2020 | 3.27% | 27.78% | 5.69% | 16.19% | 3.90% | 13.65% | 13.11% | 15.47% | 14.23% | 5.01% | 16.15% | 14.60% | 28.91% |
| Mar 31, 2019 | 1.94% | 5.66% | 6.37% | 14.22% | 4.04% | 15.42% | 13.05% | 18.26% | -1.79% | 12.91% | 31.15% | 13.31% | 27.84% |
| Mar 31, 2018 | 3.09% | 7.40% | 7.31% | 18.64% | 24.46% | 16.45% | 14.28% | 19.08% | 11.06% | 32.59% | 27.11% | -14.88% | 32.56% |
| Mar 31, 2017 | 2.14% | 1.21% | 3.44% | 17.68% | 3.11% | 7.79% | 16.74% | 14.00% | 0.45% | 14.40% | 16.93% | 3.77% | 20.87% |
| Mar 31, 2016 | 5.82% | -14.97% | 10.81% | 11.80% | -3.48% | 9.10% | 14.20% | 7.45% | -14.91% | -1.00% | 8.33% | 10.90% | 21.88% |
| Mar 31, 2015 | 7.72% | -21.23% | 9.87% | 9.00% | 12.88% | 11.08% | 7.59% | 7.00% | 7.40% | 12.01% | 8.76% | 10.38% | 18.40% |
| Mar 31, 2014 | 9.72% | -10.70% | 9.17% | 8.14% | 2.51% | 12.73% | 10.52% | 7.91% | 5.78% | 13.53% | 6.07% | 16.40% | 15.92% |
| Mar 31, 2013 | 3.31% | -1.91% | 10.55% | 2.13% | 16.16% | 10.42% | 10.27% | 1.57% | 5.83% | 6.22% | 8.77% | 15.06% | 11.42% |
| Mar 31, 2012 | 10.92% | -29.58% | 11.59% | 0.90% | 19.67% | 13.05% | 14.82% | 2.11% | 10.66% | -7.20% | 10.46% | 14.20% | 8.79% |
| Mar 31, 2011 | 14.12% | 9.91% | 16.44% | 13.90% | 22.57% | 18.20% | 16.99% | 17.84% | 14.26% | 1.13% | 5.63% | 11.70% | 10.91% |
| Mar 31, 2010 | 8.62% | 9.49% | 16.45% | 8.57% | 19.24% | 18.14% | 5.43% | 13.94% | 6.84% | 12.59% | -1.90% | 10.62% | 24.09% |
| Mar 31, 2009 | 10.28% | 3.35% | 7.28% | -3.19% | -2.23% | 8.23% | -14.50% | -15.48% | 3.34% | -16.02% | -0.90% | 5.80% | 12.13% |
| Mar 31, 2008 | 11.85% | -40.36% | 25.44% | 8.73% | — | 10.43% | 7.41% | 15.65% | -2.51% | -12.06% | 21.28% | 12.86% | 16.10% |
| Mar 31, 2007 | 15.73% | -29.26% | 16.72% | 16.05% | — | 12.54% | 11.42% | 32.63% | -0.27% | -2.16% | 16.78% | 17.86% | 20.98% |
| Mar 31, 2006 | 10.31% | -1.26% | 13.78% | 16.00% | — | 10.43% | 8.31% | 14.51% | 9.43% | 3.34% | 15.80% | 16.24% | 31.16% |
| Mar 31, 2005 | 11.76% | 2.27% | 9.05% | 10.74% | — | 17.93% | 11.71% | 20.66% | 5.08% | 2.35% | 6.16% | 17.17% | 15.43% |
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., ROA, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Microchip Technology Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Mar 31, 2022 | 7.94% | 12.17% |
| Mar 31, 2021 | 2.12% | 13.29% |
| Mar 31, 2020 | 3.27% | 11.86% |
| Mar 31, 2019 | 1.94% | 12.98% |
| Mar 31, 2018 | 3.09% | 17.25% |
| Mar 31, 2017 | 2.14% | 8.34% |
| Mar 31, 2016 | 5.82% | 6.69% |
| Mar 31, 2015 | 7.72% | 10.65% |
| Mar 31, 2014 | 9.72% | 12.05% |
| Mar 31, 2013 | 3.31% | 10.05% |
| Mar 31, 2012 | 10.92% | 9.54% |
| Mar 31, 2011 | 14.12% | 13.83% |
| Mar 31, 2010 | 8.62% | 14.54% |
| Mar 31, 2009 | 10.28% | 3.60% |
| Mar 31, 2008 | 11.85% | 6.42% |
| Mar 31, 2007 | 15.73% | 9.30% |
| Mar 31, 2006 | 10.31% | 12.06% |
| Mar 31, 2005 | 11.76% | 13.79% |
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., ROA, long-term trends, comparison to industry (information technology)
| Microchip Technology Inc. | Information Technology | |
|---|---|---|
| Mar 31, 2022 | 7.94% | 14.33% |
| Mar 31, 2021 | 2.12% | 14.52% |
| Mar 31, 2020 | 3.27% | 11.46% |
| Mar 31, 2019 | 1.94% | 11.67% |
| Mar 31, 2018 | 3.09% | 10.94% |
| Mar 31, 2017 | 2.14% | 9.00% |
| Mar 31, 2016 | 5.82% | 9.68% |
| Mar 31, 2015 | 7.72% | 11.51% |
| Mar 31, 2014 | 9.72% | 12.33% |
| Mar 31, 2013 | 3.31% | 13.22% |
| Mar 31, 2012 | 10.92% | 14.06% |
| Mar 31, 2011 | 14.12% | 15.11% |
| Mar 31, 2010 | 8.62% | 14.45% |
| Mar 31, 2009 | 10.28% | 10.04% |
| Mar 31, 2008 | 11.85% | 11.87% |
| Mar 31, 2007 | 15.73% | 11.93% |
| Mar 31, 2006 | 10.31% | 12.20% |
| Mar 31, 2005 | 11.76% | 12.71% |
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).