Return on Equity (ROE)
since 2005
Calculation
Microchip Technology Inc., ROE, long-term trends, calculation
| ROE | = | 100 | × | Net income1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 21.81% | = | 100 | × | 1,285,500) | ÷ | 5,894,800) |
| Mar 31, 2021 | 6.55% | = | 100 | × | 349,400) | ÷ | 5,337,100) |
| Mar 31, 2020 | 10.22% | = | 100 | × | 570,600) | ÷ | 5,585,500) |
| Mar 31, 2019 | 6.73% | = | 100 | × | 355,900) | ÷ | 5,287,500) |
| Mar 31, 2018 | 7.79% | = | 100 | × | 255,400) | ÷ | 3,279,800) |
| Mar 31, 2017 | 5.03% | = | 100 | × | 164,639) | ÷ | 3,270,711) |
| Mar 31, 2016 | 15.07% | = | 100 | × | 324,132) | ÷ | 2,150,919) |
| Mar 31, 2015 | 18.05% | = | 100 | × | 369,009) | ÷ | 2,044,654) |
| Mar 31, 2014 | 18.51% | = | 100 | × | 395,281) | ÷ | 2,135,461) |
| Mar 31, 2013 | 6.59% | = | 100 | × | 127,389) | ÷ | 1,933,470) |
| Mar 31, 2012 | 16.91% | = | 100 | × | 336,705) | ÷ | 1,990,673) |
| Mar 31, 2011 | 23.12% | = | 100 | × | 418,950) | ÷ | 1,812,438) |
| Mar 31, 2010 | 14.15% | = | 100 | × | 217,005) | ÷ | 1,533,380) |
| Mar 31, 2009 | 25.11% | = | 100 | × | 248,820) | ÷ | 990,766) |
| Mar 31, 2008 | 28.73% | = | 100 | × | 297,748) | ÷ | 1,036,223) |
| Mar 31, 2007 | 17.81% | = | 100 | × | 357,029) | ÷ | 2,004,368) |
| Mar 31, 2006 | 14.04% | = | 100 | × | 242,369) | ÷ | 1,726,189) |
| Mar 31, 2005 | 14.39% | = | 100 | × | 213,785) | ÷ | 1,485,734) |
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 financial performance between March 31, 2005, and March 31, 2022, is characterized by significant volatility in net income and a long-term expansion of the stockholders' equity base, which together have created a fluctuating Return on Equity (ROE) profile.
- Net Income Trends
- Net income exhibited a general upward trajectory over the seventeen-year period, although the growth was non-linear. Initial growth peaked in 2007 at 357 million USD, followed by a period of instability with a notable low in 2013 (127 million USD) and another dip in 2017 (164 million USD). A substantial acceleration in profitability is observed in the final year of the period, with net income reaching a peak of 1.28 billion USD in 2022.
- Stockholders' Equity Dynamics
- The equity base grew from approximately 1.49 billion USD in 2005 to 5.89 billion USD by 2022. A significant contraction occurred between 2007 and 2009, where equity dropped from 2.00 billion USD to 990 million USD. Following 2010, a consistent expansion phase is observed, with equity increasing more than threefold between 2016 and 2022.
- Return on Equity (ROE) Interpretation
- ROE demonstrated high variability, with a peak of 28.73% in 2008. This specific peak correlates with the sharp reduction in stockholders' equity rather than a record high in net income, suggesting that the return was amplified by a smaller equity denominator. From 2017 to 2021, ROE remained relatively suppressed, fluctuating between a low of 5.03% and a high of 10.22%, as equity growth outpaced net income growth. However, a strong recovery is noted in 2022, with ROE rising to 21.81%, driven by the surge in net income.
Overall, the analysis indicates a transition from a period of high ROE driven by lean equity (2008-2009) to a period of equity accumulation and compressed returns (2017-2021), concluding with a significant improvement in capital efficiency in 2022.
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Comparison to Competitors
Microchip Technology Inc., ROE, 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 | 21.81% | 2.41% | 7.54% | 53.51% | 50.62% | 7.90% | 237.04% | 73.35% | -2.68% | 17.41% | 36.65% | 71.81% | 60.02% |
| Mar 31, 2021 | 6.55% | 42.18% | 3.66% | 48.08% | 26.99% | 20.83% | 61.53% | 64.85% | -3.29% | 13.34% | 25.64% | 90.88% | 58.27% |
| Mar 31, 2020 | 10.22% | 42.66% | 10.17% | 34.21% | 12.40% | 25.79% | 45.65% | 43.53% | 18.26% | 6.89% | 22.91% | 85.54% | 60.90% |
| Mar 31, 2019 | 6.73% | 12.06% | 11.64% | 32.94% | 10.92% | 27.16% | 44.21% | 46.89% | -2.45% | 17.59% | 44.33% | 89.35% | 56.33% |
| Mar 31, 2018 | 7.79% | 26.62% | 13.61% | 48.44% | 45.99% | 28.24% | 49.51% | 36.62% | 12.58% | 43.77% | 40.78% | -524.14% | 62.04% |
| Mar 31, 2017 | 5.03% | 7.04% | 7.16% | 36.73% | 8.34% | 13.91% | 69.82% | 24.90% | 0.53% | 27.33% | 28.91% | 8.02% | 35.62% |
| Mar 31, 2016 | 15.07% | -119.47% | 16.68% | 23.85% | -9.20% | 15.58% | 102.22% | 15.51% | -19.60% | -2.28% | 13.74% | 17.95% | 34.33% |
| Mar 31, 2015 | 18.05% | — | 13.74% | 18.09% | 28.94% | 18.70% | 86.88% | 12.85% | 8.46% | 23.57% | 14.27% | 16.78% | 30.02% |
| Mar 31, 2014 | 18.51% | -215.51% | 13.23% | 13.62% | 8.11% | 20.95% | 15.88% | 12.57% | 6.74% | 28.27% | 9.87% | 20.34% | 27.15% |
| Mar 31, 2013 | 6.59% | -15.26% | 14.21% | 3.61% | 19.13% | 16.51% | 15.60% | 2.54% | 6.84% | 13.02% | 11.65% | 18.99% | 20.01% |
| Mar 31, 2012 | 16.91% | -219.89% | 15.63% | 1.51% | 23.27% | 21.49% | 22.80% | 3.29% | 12.27% | -13.40% | 14.02% | 18.22% | 16.05% |
| Mar 31, 2011 | 23.12% | 30.88% | 22.85% | 21.89% | 27.52% | 28.19% | 27.77% | 29.30% | 16.37% | 1.97% | 7.96% | 15.81% | 20.42% |
| Mar 31, 2010 | 14.15% | 46.50% | 22.25% | 12.44% | 27.57% | 23.19% | 9.45% | 19.61% | 8.00% | 23.07% | -2.55% | 15.57% | 30.93% |
| Mar 31, 2009 | 25.11% | 46.91% | 9.80% | -4.30% | -4.23% | 10.48% | -23.96% | -20.79% | 3.85% | -39.43% | -1.25% | 7.84% | 15.12% |
| Mar 31, 2008 | 28.73% | — | 32.49% | 12.73% | — | 13.54% | 12.04% | 24.70% | -3.35% | -26.21% | 30.47% | 17.61% | 20.59% |
| Mar 31, 2007 | 17.81% | -113.01% | 21.25% | 21.87% | — | 16.31% | 14.88% | 58.30% | -0.37% | -4.13% | 22.36% | 20.86% | 26.64% |
| Mar 31, 2006 | 14.04% | -2.87% | 15.99% | 22.80% | — | 13.72% | 10.66% | 24.05% | 10.88% | 5.03% | 20.76% | 18.42% | 38.21% |
| Mar 31, 2005 | 14.39% | 4.94% | 11.24% | 13.55% | — | 23.95% | 15.33% | 28.06% | 5.67% | 3.22% | 8.52% | 19.27% | 19.47% |
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., ROE, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Microchip Technology Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Mar 31, 2022 | 21.81% | 21.59% |
| Mar 31, 2021 | 6.55% | 24.91% |
| Mar 31, 2020 | 10.22% | 24.28% |
| Mar 31, 2019 | 6.73% | 25.76% |
| Mar 31, 2018 | 7.79% | 32.95% |
| Mar 31, 2017 | 5.03% | 16.60% |
| Mar 31, 2016 | 15.07% | 12.61% |
| Mar 31, 2015 | 18.05% | 18.69% |
| Mar 31, 2014 | 18.51% | 19.37% |
| Mar 31, 2013 | 6.59% | 15.49% |
| Mar 31, 2012 | 16.91% | 14.85% |
| Mar 31, 2011 | 23.12% | 21.32% |
| Mar 31, 2010 | 14.15% | 20.49% |
| Mar 31, 2009 | 25.11% | 5.22% |
| Mar 31, 2008 | 28.73% | 9.53% |
| Mar 31, 2007 | 17.81% | 13.17% |
| Mar 31, 2006 | 14.04% | 16.33% |
| Mar 31, 2005 | 14.39% | 18.14% |
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., ROE, long-term trends, comparison to industry (information technology)
| Microchip Technology Inc. | Information Technology | |
|---|---|---|
| Mar 31, 2022 | 21.81% | 38.03% |
| Mar 31, 2021 | 6.55% | 41.64% |
| Mar 31, 2020 | 10.22% | 35.38% |
| Mar 31, 2019 | 6.73% | 35.94% |
| Mar 31, 2018 | 7.79% | 30.23% |
| Mar 31, 2017 | 5.03% | 23.19% |
| Mar 31, 2016 | 15.07% | 23.00% |
| Mar 31, 2015 | 18.05% | 25.97% |
| Mar 31, 2014 | 18.51% | 25.43% |
| Mar 31, 2013 | 6.59% | 24.73% |
| Mar 31, 2012 | 16.91% | 26.09% |
| Mar 31, 2011 | 23.12% | 29.03% |
| Mar 31, 2010 | 14.15% | 27.62% |
| Mar 31, 2009 | 25.11% | 20.05% |
| Mar 31, 2008 | 28.73% | 25.24% |
| Mar 31, 2007 | 17.81% | 23.67% |
| Mar 31, 2006 | 14.04% | 22.58% |
| Mar 31, 2005 | 14.39% | 21.92% |
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).