Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

Analysis of Profitability Ratios

Microsoft Excel

Profitability Ratios (Summary)

Microchip Technology Inc., profitability ratios

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Return on Sales
Gross profit margin 65.23% 62.13% 61.47% 54.80% 60.81% 51.56%
Operating profit margin 27.12% 18.35% 12.27% 13.35% 23.52% 8.09%
Net profit margin 18.85% 6.42% 10.82% 6.65% 6.42% 4.83%
Return on Investment
Return on equity (ROE) 21.81% 6.55% 10.22% 6.73% 7.79% 5.03%
Return on assets (ROA) 7.94% 2.12% 3.27% 1.94% 3.09% 2.14%

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).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Microchip Technology Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Microchip Technology Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Microchip Technology Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Microchip Technology Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
ROA A profitability ratio calculated as net income divided by total assets. Microchip Technology Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Gross Profit Margin

Microchip Technology Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Gross profit 4,449,600 3,378,800 3,242,100 2,931,300 2,420,700 1,757,196
Net sales 6,820,900 5,438,400 5,274,200 5,349,500 3,980,800 3,407,807
Profitability Ratio
Gross profit margin1 65.23% 62.13% 61.47% 54.80% 60.81% 51.56%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 44.93% 48.25% 44.53% 42.61%
Analog Devices Inc. 62.70% 61.83% 65.87% 67.00% 68.27%
Applied Materials Inc. 46.51% 47.32% 44.72% 43.72% 45.31%
Broadcom Inc. 66.55% 61.36% 56.58% 55.24% 51.48%
Intel Corp. 42.61% 55.45% 56.01% 58.56%
KLA Corp. 61.00% 59.93% 57.81% 59.08% 64.14%
Lam Research Corp. 45.69% 46.53% 45.88% 45.15% 46.63%
Micron Technology Inc. 45.18% 37.62% 30.57% 45.72% 58.87%
NVIDIA Corp. 64.93% 62.34% 61.99% 61.21%
ON Semiconductor Corp. 48.97% 40.27% 32.65% 35.77%
Qualcomm Inc. 57.84% 57.51% 60.67% 64.57% 54.94%
Texas Instruments Inc. 68.76% 67.47% 64.10% 63.71%

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).

1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 4,449,600 ÷ 6,820,900 = 65.23%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Microchip Technology Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Operating Profit Margin

Microchip Technology Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Operating income 1,849,600 998,100 647,100 714,300 936,300 275,817
Net sales 6,820,900 5,438,400 5,274,200 5,349,500 3,980,800 3,407,807
Profitability Ratio
Operating profit margin1 27.12% 18.35% 12.27% 13.35% 23.52% 8.09%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 5.36% 22.20% 14.02% 9.37%
Analog Devices Inc. 27.29% 23.12% 26.74% 28.55% 30.35%
Applied Materials Inc. 30.20% 29.87% 25.37% 22.93% 27.80%
Broadcom Inc. 42.84% 31.03% 16.80% 15.24% 24.63%
Intel Corp. 3.70% 24.62% 30.41% 30.62%
KLA Corp. 39.67% 35.97% 25.87% 30.41% 38.08%
Lam Research Corp. 31.24% 30.64% 26.62% 25.53% 29.01%
Micron Technology Inc. 31.54% 22.68% 14.01% 31.51% 49.34%
NVIDIA Corp. 37.31% 27.18% 26.07% 32.47%
ON Semiconductor Corp. 28.34% 19.10% 6.64% 7.84%
Qualcomm Inc. 35.88% 29.16% 26.58% 31.59% 3.26%
Texas Instruments Inc. 50.63% 48.84% 40.76% 39.79%
Operating Profit Margin, Sector
Semiconductors & Semiconductor Equipment 27.37% 28.08% 25.44% 27.87%
Operating Profit Margin, Industry
Information Technology 28.47% 28.76% 24.95% 25.42%

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).

1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,849,600 ÷ 6,820,900 = 27.12%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Microchip Technology Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

Net Profit Margin

Microchip Technology Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Net income 1,285,500 349,400 570,600 355,900 255,400 164,639
Net sales 6,820,900 5,438,400 5,274,200 5,349,500 3,980,800 3,407,807
Profitability Ratio
Net profit margin1 18.85% 6.42% 10.82% 6.65% 6.42% 4.83%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 5.59% 19.24% 25.50% 5.07%
Analog Devices Inc. 22.88% 19.00% 21.79% 22.75% 24.12%
Applied Materials Inc. 25.31% 25.53% 21.04% 18.52% 19.20%
Broadcom Inc. 34.62% 24.54% 12.39% 12.05% 58.80%
Intel Corp. 12.71% 25.14% 26.84% 29.25%
KLA Corp. 36.06% 30.04% 20.96% 25.73% 19.87%
Lam Research Corp. 26.73% 26.72% 22.42% 22.70% 21.49%
Micron Technology Inc. 28.24% 21.16% 12.54% 26.97% 46.51%
NVIDIA Corp. 36.23% 25.98% 25.61% 35.34%
ON Semiconductor Corp. 22.85% 14.98% 4.46% 3.84%
Qualcomm Inc. 29.27% 26.94% 22.09% 18.07% -21.40%
Texas Instruments Inc. 43.68% 42.35% 38.69% 34.88%
Net Profit Margin, Sector
Semiconductors & Semiconductor Equipment 25.47% 25.57% 22.66% 23.96%
Net Profit Margin, Industry
Information Technology 24.07% 25.56% 21.38% 22.17%

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).

1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,285,500 ÷ 6,820,900 = 18.85%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Microchip Technology Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Return on Equity (ROE)

Microchip Technology Inc., ROE calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Net income 1,285,500 349,400 570,600 355,900 255,400 164,639
Stockholders’ equity 5,894,800 5,337,100 5,585,500 5,287,500 3,279,800 3,270,711
Profitability Ratio
ROE1 21.81% 6.55% 10.22% 6.73% 7.79% 5.03%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 2.41% 42.18% 42.66% 12.06%
Analog Devices Inc. 7.54% 3.66% 10.17% 11.64% 13.61%
Applied Materials Inc. 53.51% 48.08% 34.21% 32.94% 48.44%
Broadcom Inc. 50.62% 26.99% 12.40% 10.92% 45.99%
Intel Corp. 7.90% 20.83% 25.79% 27.16%
KLA Corp. 237.04% 61.53% 45.65% 44.21% 49.51%
Lam Research Corp. 73.35% 64.85% 43.53% 46.89% 36.62%
Micron Technology Inc. 17.41% 13.34% 6.89% 17.59% 43.77%
NVIDIA Corp. 36.65% 25.64% 22.91% 44.33%
ON Semiconductor Corp. 30.74% 22.02% 6.62% 6.41%
Qualcomm Inc. 71.81% 90.88% 85.54% 89.35% -524.14%
Texas Instruments Inc. 60.02% 58.27% 60.90% 56.33%
ROE, Sector
Semiconductors & Semiconductor Equipment 22.84% 25.72% 24.23% 26.49%
ROE, Industry
Information Technology 38.69% 42.56% 35.29% 36.68%

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).

1 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,285,500 ÷ 5,894,800 = 21.81%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Microchip Technology Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Return on Assets (ROA)

Microchip Technology Inc., ROA calculation, comparison to benchmarks

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Net income 1,285,500 349,400 570,600 355,900 255,400 164,639
Total assets 16,199,500 16,478,800 17,426,100 18,350,000 8,257,200 7,686,881
Profitability Ratio
ROA1 7.94% 2.12% 3.27% 1.94% 3.09% 2.14%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 1.95% 25.46% 27.78% 5.66%
Analog Devices Inc. 5.46% 2.66% 5.69% 6.37% 7.31%
Applied Materials Inc. 24.41% 22.80% 16.19% 14.22% 18.64%
Broadcom Inc. 15.69% 8.91% 3.90% 4.04% 24.46%
Intel Corp. 4.40% 11.80% 13.65% 15.42%
KLA Corp. 26.37% 20.23% 13.11% 13.05% 14.28%
Lam Research Corp. 26.78% 24.59% 15.47% 18.26% 19.08%
Micron Technology Inc. 13.11% 9.96% 5.01% 12.91% 32.59%
NVIDIA Corp. 22.07% 15.05% 16.15% 31.15%
ON Semiconductor Corp. 15.88% 10.49% 2.70% 2.51%
Qualcomm Inc. 26.39% 21.93% 14.60% 13.31% -14.88%
Texas Instruments Inc. 32.16% 31.48% 28.91% 27.84%
ROA, Sector
Semiconductors & Semiconductor Equipment 12.74% 13.56% 11.62% 13.13%
ROA, Industry
Information Technology 15.14% 15.65% 12.15% 12.80%

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).

1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,285,500 ÷ 16,199,500 = 7.94%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Microchip Technology Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.