Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Microchip Technology Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
The analysis of the quarterly financial data reveals several key trends in profitability and efficiency metrics over the observed periods.
- Gross Profit Margin
- The gross profit margin demonstrates a general upward trajectory from mid-2017 through the end of 2022. Starting at around 55.67%, it exhibits fluctuations but maintains an overall increasing pattern, reaching above 67% by the last reported quarter. This indicates improving cost management or enhanced pricing power resulting in higher retained revenue from sales.
- Operating Profit Margin
- The operating profit margin also rises consistently over the timeframe, beginning near 15.54% and climbing steadily to achieve approximately 35% in the final period. Despite occasional short-term declines, the overall trend signifies improved operational efficiency and possibly better control over operating expenses relative to income.
- Net Profit Margin
- The net profit margin presents more volatility compared to gross and operating margins. It starts at about 12.53%, experiences several fluctuations— including a significant dip below 3% during 2018—before resuming a positive upward trend, culminating in around 25.73% in the last quarter. This suggests variable impacts from non-operating factors such as taxes, interest, or extraordinary items during the periods, but a generally improving bottom-line profitability over time.
- Return on Equity (ROE)
- The ROE mirrors the pattern of net profit margin, beginning at 13.15%, dipping markedly in early 2018, then recovering and progressively rising to reach roughly 32.82% by the end of 2022. This improvement underscores enhanced effectiveness in generating shareholder returns, likely driven by both profitability gains and efficient equity utilization.
- Return on Assets (ROA)
- The ROA shows a similar but less pronounced pattern. It starts at 5.69%, drops significantly in 2018, then gradually climbs to around 12.85% at the close of the dataset. This indicates better asset utilization to generate profits, though its overall lower percentage compared to ROE suggests greater leverage or capital structure effects.
In summary, the financial indicators reflect a company improving its profitability margins and returns over the examined quarters, despite interim periods of volatility. The consistent upward movement in gross profit margin and operating profit margin points to strengthened core operating performance. Meanwhile, the recovery and growth in net profit margin, ROE, and ROA highlight enhanced overall financial effectiveness and shareholder value generation over time.
Return on Sales
Return on Investment
Gross Profit Margin
Microchip Technology Inc., gross profit margin calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Gross profit | 1,470,800) | 1,397,900) | 1,309,900) | 1,220,400) | 1,153,300) | 1,068,300) | 1,007,600) | 926,800) | 845,800) | 807,900) | 798,300) | 813,900) | 785,500) | 827,500) | 815,200) | 820,400) | 779,600) | 689,300) | 642,000) | 615,108) | 607,059) | 614,094) | 584,439) | |||||||
| Net sales | 2,169,200) | 2,073,200) | 1,963,600) | 1,844,200) | 1,757,500) | 1,649,800) | 1,569,400) | 1,467,100) | 1,352,100) | 1,309,500) | 1,309,700) | 1,326,400) | 1,287,400) | 1,337,800) | 1,322,600) | 1,329,800) | 1,374,700) | 1,432,500) | 1,212,500) | 1,002,315) | 994,205) | 1,012,139) | 972,141) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Gross profit margin1 | 67.07% | 66.52% | 65.86% | 65.23% | 64.50% | 63.73% | 62.97% | 62.13% | 61.65% | 61.26% | 61.30% | 61.47% | 61.55% | 60.44% | 56.86% | 54.80% | 54.28% | 55.01% | 58.71% | 60.81% | 60.25% | 59.03% | 55.67% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 45.01% | 43.70% | 43.98% | 44.93% | 46.55% | 48.01% | 48.53% | 48.25% | 46.82% | 45.71% | 44.79% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 65.23% | 65.69% | 65.62% | 62.70% | 58.63% | 58.33% | 57.81% | 61.83% | 68.04% | 67.36% | 66.37% | 65.87% | 65.39% | 65.56% | 66.43% | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 46.40% | 46.35% | 46.39% | 46.51% | 47.05% | 47.51% | 47.67% | 47.32% | 46.69% | 45.83% | 44.96% | 44.72% | 44.23% | 44.04% | 43.81% | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 68.28% | 67.71% | 66.98% | 66.55% | 65.68% | 64.42% | 62.95% | 61.36% | 60.18% | 58.98% | 57.54% | 56.58% | 55.70% | 55.21% | 55.32% | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | 38.14% | 38.27% | 38.34% | 42.61% | 46.56% | 49.85% | 54.32% | 55.45% | 56.27% | 55.59% | 54.62% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 60.16% | 60.69% | 61.23% | 61.00% | 60.86% | 60.77% | 60.27% | 59.93% | 59.38% | 58.80% | 58.43% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 44.65% | 45.31% | 45.74% | 45.69% | 45.93% | 46.30% | 46.19% | 46.53% | 46.49% | 46.59% | 46.43% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | 9.03% | 27.51% | 41.34% | 45.18% | 46.89% | 45.81% | 41.37% | 37.62% | 33.66% | 30.70% | 31.37% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 57.84% | 60.45% | 65.26% | 64.93% | 64.40% | 63.76% | 62.43% | 62.34% | 62.62% | 62.84% | 63.47% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 56.31% | 56.46% | 57.22% | 57.84% | 57.99% | 58.51% | 58.16% | 57.51% | 59.82% | 59.99% | 60.17% | 60.67% | 56.96% | 65.07% | 65.22% | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 64.46% | 66.29% | 67.64% | 68.76% | 69.51% | 69.26% | 68.68% | 67.47% | 66.36% | 65.46% | 64.70% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Gross profit margin = 100
× (Gross profitQ3 2023
+ Gross profitQ2 2023
+ Gross profitQ1 2023
+ Gross profitQ4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × (1,470,800 + 1,397,900 + 1,309,900 + 1,220,400)
÷ (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200)
= 67.07%
2 Click competitor name to see calculations.
The financial data reveals several notable trends over the examined periods. Net sales exhibited an overall upward trajectory, increasing from approximately $972 million in mid-2017 to around $2.17 billion by the end of 2022. This growth suggests steady expansion in the company's revenue-generating activities across the analyzed timeframe, with occasional minor fluctuations.
Gross profit followed a similar increasing pattern, rising from roughly $584 million in mid-2017 to approximately $1.47 billion by the end of 2022. This represents a substantial increase in absolute profitability, indicating enhanced capacity to generate profit from net sales over time.
Examining gross profit margin percentages provides additional insights. The gross profit margin started at 55.67% in mid-2017 and generally increased each quarter, reaching 67.07% by the conclusion of 2022. This consistent improvement demonstrates increasing efficiency in cost management or a favorable product mix, allowing the company to retain a higher portion of net sales as gross profit. The margin fluctuated slightly within specific quarters but maintained an upward trend overall.
- Net Sales
- Steady growth over the analyzed period, nearly doubling over five and a half years, with some short-term fluctuations.
- Gross Profit
- Consistent increase aligned with net sales growth, representing solid improvement in profit generation capabilities.
- Gross Profit Margin
- Marked upward trend from mid-2017 through end-2022, indicating enhanced operational efficiency or advantageous pricing strategies.
In summary, the data indicates robust top-line growth accompanied by improved profitability and margin expansion. These trends reflect positively on the company's operational performance and cost control effectiveness during the periods under review.
Operating Profit Margin
Microchip Technology Inc., operating profit margin calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Operating income (loss) | 811,600) | 755,100) | 701,300) | 549,500) | 515,000) | 416,300) | 368,800) | 308,000) | 245,600) | 226,200) | 218,300) | 160,700) | 131,200) | 183,600) | 171,600) | 284,600) | 194,700) | 102,700) | 132,300) | 244,057) | 245,246) | 225,399) | 221,598) | |||||||
| Net sales | 2,169,200) | 2,073,200) | 1,963,600) | 1,844,200) | 1,757,500) | 1,649,800) | 1,569,400) | 1,467,100) | 1,352,100) | 1,309,500) | 1,309,700) | 1,326,400) | 1,287,400) | 1,337,800) | 1,322,600) | 1,329,800) | 1,374,700) | 1,432,500) | 1,212,500) | 1,002,315) | 994,205) | 1,012,139) | 972,141) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Operating profit margin1 | 35.00% | 33.00% | 30.24% | 27.12% | 24.96% | 22.17% | 20.16% | 18.35% | 16.06% | 14.07% | 13.19% | 12.27% | 14.61% | 15.55% | 13.80% | 13.35% | 13.42% | 15.60% | 20.07% | 23.52% | 21.81% | 19.33% | 15.54% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | -0.41% | -1.73% | 0.73% | 5.36% | 11.48% | 16.83% | 20.86% | 22.20% | 20.27% | 18.83% | 16.23% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 33.43% | 33.06% | 32.15% | 27.29% | 20.49% | 20.42% | 18.87% | 23.12% | 31.59% | 30.06% | 28.83% | 26.74% | 24.91% | 25.30% | 26.56% | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 28.92% | 29.28% | 29.64% | 30.20% | 31.03% | 31.80% | 31.37% | 29.87% | 28.47% | 26.49% | 25.30% | 25.37% | 24.26% | 23.58% | 23.20% | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 45.00% | 45.19% | 44.23% | 42.84% | 40.47% | 37.37% | 34.35% | 31.03% | 28.16% | 24.83% | 20.81% | 16.80% | 15.27% | 14.85% | 15.90% | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | -6.86% | -7.01% | -6.16% | 3.70% | 12.16% | 18.88% | 25.87% | 24.62% | 25.93% | 26.00% | 26.17% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 39.00% | 39.86% | 40.05% | 39.67% | 39.30% | 38.90% | 37.26% | 35.97% | 34.43% | 28.42% | 27.28% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 30.76% | 31.76% | 31.71% | 31.24% | 31.18% | 31.60% | 31.06% | 30.64% | 29.55% | 28.68% | 28.02% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | -15.14% | 8.73% | 25.27% | 31.54% | 34.38% | 31.86% | 27.17% | 22.68% | 17.60% | 15.21% | 15.19% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 20.79% | 26.93% | 33.69% | 37.31% | 35.34% | 33.36% | 28.62% | 27.18% | 27.17% | 27.13% | 29.41% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 26.03% | 30.91% | 33.66% | 35.88% | 35.82% | 32.65% | 30.88% | 29.16% | 31.74% | 30.35% | 29.04% | 26.58% | 17.52% | 32.49% | 32.59% | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 44.03% | 46.54% | 48.77% | 50.63% | 51.84% | 51.52% | 50.55% | 48.84% | 47.02% | 45.19% | 42.73% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Operating profit margin = 100
× (Operating income (loss)Q3 2023
+ Operating income (loss)Q2 2023
+ Operating income (loss)Q1 2023
+ Operating income (loss)Q4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × (811,600 + 755,100 + 701,300 + 549,500)
÷ (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200)
= 35.00%
2 Click competitor name to see calculations.
- Net Sales
- The net sales displayed an overall upward trend throughout the observed period. Starting at approximately 972 million US dollars in mid-2017, the figure rose steadily, reaching over 2.16 billion US dollars by the end of 2022. Despite minor fluctuations, particularly during 2018 and 2019, the general pattern was consistent growth, reflecting an expanding revenue base.
- Operating Income (Loss)
- Operating income showed some variability initially, with a decline observed during 2018, especially in the mid-year quarters. However, from 2019 onwards, operating income experienced significant and consistent increases. From a low of around 131 million US dollars in late 2019, it grew robustly to exceed 811 million US dollars by the end of 2022, indicating improving operational profitability and possibly enhanced cost management or higher-margin sales.
- Operating Profit Margin
- The operating profit margin started at 15.54% in June 2017 and showed a fluctuating but generally upward trajectory. After a dip in 2018, margins gradually strengthened from 2019 forward, reaching an impressive 35% by the final quarter in 2022. This improvement indicates increasing efficiency in converting sales into operating profit, likely driven by both revenue growth and disciplined operational expense control.
- Summary of Trends and Insights
- Across the examined timeframe, the company demonstrated sustained growth in sales accompanied by marked improvements in operating profitability. The initial volatility in operating income and margins during 2018 suggests some underlying challenges during that period, but these were clearly overcome in subsequent years. The steady rise in operating profit margin highlights enhanced operational leverage and potentially higher value product offerings or cost optimizations. Overall, the data reflects a company successfully scaling its revenue base while simultaneously improving its profitability metrics.
Net Profit Margin
Microchip Technology Inc., net profit margin calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | 580,300) | 546,200) | 507,200) | 437,900) | 352,800) | 242,000) | 252,800) | 116,000) | 36,200) | 73,600) | 123,600) | 99,900) | 311,100) | 108,900) | 50,700) | 174,700) | 49,200) | 96,300) | 35,700) | 146,743) | (251,086) | 189,156) | 170,587) | |||||||
| Net sales | 2,169,200) | 2,073,200) | 1,963,600) | 1,844,200) | 1,757,500) | 1,649,800) | 1,569,400) | 1,467,100) | 1,352,100) | 1,309,500) | 1,309,700) | 1,326,400) | 1,287,400) | 1,337,800) | 1,322,600) | 1,329,800) | 1,374,700) | 1,432,500) | 1,212,500) | 1,002,315) | 994,205) | 1,012,139) | 972,141) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| Net profit margin1 | 25.73% | 24.14% | 21.34% | 18.85% | 14.95% | 10.71% | 8.40% | 6.42% | 6.29% | 11.62% | 12.23% | 10.82% | 12.23% | 7.15% | 6.79% | 6.65% | 6.53% | 0.60% | 2.85% | 6.42% | 6.33% | 16.23% | 12.53% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.94% | -0.11% | 1.71% | 5.59% | 9.96% | 14.51% | 17.98% | 19.24% | 26.72% | 25.76% | 25.24% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 29.23% | 28.16% | 27.27% | 22.88% | 17.00% | 16.84% | 15.18% | 19.00% | 26.15% | 25.16% | 23.99% | 21.79% | 20.14% | 20.05% | 21.06% | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 24.27% | 24.36% | 24.57% | 25.31% | 26.42% | 27.20% | 27.10% | 25.53% | 24.54% | 22.35% | 21.19% | 21.04% | 19.58% | 18.89% | 18.83% | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 39.25% | 39.06% | 37.19% | 34.62% | 31.96% | 29.76% | 27.47% | 24.54% | 22.90% | 19.11% | 16.01% | 12.39% | 10.70% | 10.97% | 11.64% | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | -3.11% | -1.71% | -5.06% | 12.71% | 19.13% | 26.03% | 31.68% | 25.14% | 26.89% | 23.91% | 23.93% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 33.01% | 33.77% | 33.28% | 36.06% | 36.41% | 36.57% | 36.52% | 30.04% | 28.77% | 22.52% | 21.76% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 26.08% | 26.91% | 26.96% | 26.73% | 27.13% | 27.78% | 27.07% | 26.72% | 26.07% | 24.85% | 23.60% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | -16.02% | 6.99% | 22.78% | 28.24% | 30.61% | 28.95% | 24.86% | 21.16% | 16.20% | 13.60% | 13.59% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 20.85% | 26.03% | 32.02% | 36.23% | 33.81% | 32.33% | 27.66% | 25.98% | 25.89% | 25.94% | 28.18% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 22.33% | 25.67% | 27.40% | 29.27% | 30.52% | 28.42% | 27.71% | 26.94% | 28.25% | 27.28% | 25.21% | 22.09% | 13.72% | 16.36% | 17.31% | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 39.21% | 40.84% | 42.33% | 43.68% | 44.21% | 43.78% | 43.34% | 42.35% | 41.61% | 40.12% | 40.04% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
Net profit margin = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ (Net salesQ3 2023
+ Net salesQ2 2023
+ Net salesQ1 2023
+ Net salesQ4 2022)
= 100 × (580,300 + 546,200 + 507,200 + 437,900)
÷ (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200)
= 25.73%
2 Click competitor name to see calculations.
- Net Income (Loss)
- The net income exhibits substantial volatility, with a recorded loss in the quarter ending December 31, 2017, followed by mostly positive results throughout the subsequent periods. From mid-2018 onwards, net income generally demonstrates an upward trend, accelerating markedly after mid-2021. By the end of the series, net income peaks at 580,300 thousand US dollars, indicating substantial profit growth in recent quarters.
- Net Sales
- Net sales show a steady increasing pattern over the entire period. Starting at just under one billion dollars in mid-2017, sales progressively rise every quarter, with only minor fluctuations. The growth becomes increasingly noticeable from early 2020, reaching over two billion dollars by the fourth quarter of 2022. This trend highlights consistent expansion in revenue generation.
- Net Profit Margin
- The net profit margin percentage displays an overall strengthening trend with periods of fluctuation. Initially, margins vary between approximately 0.6% and 16.23%, showing some inconsistency. However, from 2019 onward, there is a clear improvement with margins steadily increasing, culminating in a margin above 25% at the last recorded quarter. This indicates enhanced profitability relative to sales over time.
- General Insights
- The data reveals continuous revenue growth accompanied by improving profitability, as reflected in both rising net income and net profit margins. The sharp recovery and growth after the loss episode in late 2017 suggest effective operational or strategic adjustments. The consistent increase in net sales underpins this profit expansion, pointing to successful business growth and potentially improved cost management or pricing strategies over the examined periods.
Return on Equity (ROE)
Microchip Technology Inc., ROE calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | 580,300) | 546,200) | 507,200) | 437,900) | 352,800) | 242,000) | 252,800) | 116,000) | 36,200) | 73,600) | 123,600) | 99,900) | 311,100) | 108,900) | 50,700) | 174,700) | 49,200) | 96,300) | 35,700) | 146,743) | (251,086) | 189,156) | 170,587) | |||||||
| Stockholders’ equity | 6,311,600) | 6,103,100) | 5,977,900) | 5,894,800) | 5,803,300) | 5,702,900) | 5,519,900) | 5,337,100) | 5,297,000) | 5,443,700) | 5,501,300) | 5,585,500) | 5,616,600) | 5,361,300) | 5,288,300) | 5,287,500) | 5,161,100) | 5,170,200) | 5,123,800) | 3,279,800) | 3,185,075) | 3,546,124) | 3,412,554) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROE1 | 32.82% | 30.22% | 25.76% | 21.81% | 16.60% | 11.35% | 8.67% | 6.55% | 6.29% | 11.17% | 11.70% | 10.22% | 11.49% | 7.15% | 7.01% | 6.73% | 6.35% | 0.53% | 2.35% | 7.79% | 7.71% | 17.03% | 13.15% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROE, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.38% | -0.05% | 0.72% | 2.41% | 4.17% | 5.67% | 6.13% | 42.18% | 55.62% | 48.63% | 44.51% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 10.45% | 10.06% | 9.39% | 7.54% | 5.15% | 4.43% | 3.43% | 3.66% | 13.87% | 12.83% | 11.63% | 10.17% | 9.44% | 9.59% | 10.37% | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 42.69% | 45.93% | 48.06% | 53.51% | 55.06% | 58.35% | 55.09% | 48.08% | 44.00% | 36.95% | 33.62% | 34.21% | 33.30% | 32.31% | 32.64% | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 63.03% | 62.20% | 54.90% | 50.62% | 48.50% | 42.58% | 34.09% | 26.99% | 24.94% | 20.40% | 16.49% | 12.40% | 10.54% | 10.48% | 10.83% | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | -1.61% | -0.91% | -2.91% | 7.90% | 13.32% | 18.88% | 23.87% | 20.83% | 23.42% | 21.78% | 23.30% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 130.76% | 136.01% | 156.01% | 237.04% | 77.19% | 73.76% | 70.61% | 61.53% | 59.60% | 46.59% | 46.99% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 58.49% | 61.71% | 65.45% | 73.35% | 75.35% | 70.88% | 73.28% | 64.85% | 64.42% | 53.86% | 48.15% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | -6.41% | 3.41% | 12.55% | 17.41% | 20.12% | 18.86% | 16.04% | 13.34% | 9.77% | 7.86% | 7.51% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 27.90% | 32.45% | 35.93% | 36.65% | 34.49% | 33.48% | 28.37% | 25.64% | 24.95% | 24.36% | 25.34% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 41.68% | 53.52% | 62.58% | 71.81% | 80.15% | 83.73% | 88.12% | 90.88% | 112.56% | 108.05% | 91.17% | 85.54% | 83.00% | 132.94% | 94.02% | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 42.70% | 48.22% | 54.16% | 60.02% | 61.52% | 60.86% | 58.62% | 58.27% | 60.23% | 60.30% | 60.73% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
ROE = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ Stockholders’ equity
= 100 × (580,300 + 546,200 + 507,200 + 437,900)
÷ 6,311,600 = 32.82%
2 Click competitor name to see calculations.
The financial data reveals several key trends over the observed quarters. Net income displays significant volatility, exhibiting both sharp decreases and strong recovery phases. After a notable loss in the fourth quarter of 2017, net income stabilizes and shows a generally upward trajectory from early 2019 onward, culminating in a substantial increase by the end of 2022.
Stockholders' equity displays a more consistent growth pattern throughout the periods. It experiences some fluctuations, particularly dipping around late 2017 and early 2018, but thereafter demonstrates steady growth, indicative of retained earnings accumulation or equity financing contributing to the company's financial stability.
Return on equity (ROE) trends align with movements in net income, starting moderately, then declining to a low point in mid-2018, before gradually increasing with some fluctuations. From 2019 forward, ROE exhibits a strengthening trend, indicating improved efficiency in generating profit from equity. The upward momentum in ROE through 2022 suggests enhanced profitability and operational effectiveness.
- Net Income (US$ in thousands)
- Net income shows high variability with a significant loss in late 2017, followed by recovery phases and generally increasing profitability from 2019 through 2022. Peaks occur notably at the end of 2019 and consistently rise thereafter, reaching the highest values in 2022.
- Stockholders’ Equity (US$ in thousands)
- Equity values maintain an overall upward trend with minor periods of decline. The sustained increase over time signals the strengthening of the company’s capital base and potential retention of earnings supporting long-term growth.
- Return on Equity (ROE, %)
- ROE exhibits an initial decrease with fluctuating lows through mid-2018, followed by a steady improvement beginning in 2019. The rate of return on equity accelerates markedly in the final quarters, reaching peak levels in 2022 that reflect growing profitability relative to shareholder investment.
In conclusion, the data supports a narrative of recovery and growth post-2017, with profitability and shareholder returns improving considerably by 2022. The consistent increase in equity values indicates financial solidity, while the rising ROE points to enhanced management effectiveness in utilizing the equity base to generate earnings.
Return on Assets (ROA)
Microchip Technology Inc., ROA calculation (quarterly data)
| Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | Dec 31, 2018 | Sep 30, 2018 | Jun 30, 2018 | Mar 31, 2018 | Dec 31, 2017 | Sep 30, 2017 | Jun 30, 2017 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | ||||||||||||||||||||||||||||||
| Net income (loss) | 580,300) | 546,200) | 507,200) | 437,900) | 352,800) | 242,000) | 252,800) | 116,000) | 36,200) | 73,600) | 123,600) | 99,900) | 311,100) | 108,900) | 50,700) | 174,700) | 49,200) | 96,300) | 35,700) | 146,743) | (251,086) | 189,156) | 170,587) | |||||||
| Total assets | 16,116,100) | 16,141,100) | 16,208,400) | 16,199,500) | 16,047,200) | 16,215,000) | 16,277,800) | 16,478,800) | 16,576,100) | 16,770,900) | 17,028,100) | 17,426,100) | 17,588,600) | 17,858,500) | 18,246,400) | 18,350,000) | 18,155,700) | 18,667,100) | 19,248,800) | 8,257,200) | 8,123,793) | 8,055,198) | 7,887,891) | |||||||
| Profitability Ratio | ||||||||||||||||||||||||||||||
| ROA1 | 12.85% | 11.42% | 9.50% | 7.94% | 6.00% | 3.99% | 2.94% | 2.12% | 2.01% | 3.63% | 3.78% | 3.27% | 3.67% | 2.15% | 2.03% | 1.94% | 1.81% | 0.15% | 0.63% | 3.09% | 3.02% | 7.50% | 5.69% | |||||||
| Benchmarks | ||||||||||||||||||||||||||||||
| ROA, Competitors2 | ||||||||||||||||||||||||||||||
| Advanced Micro Devices Inc. | 0.31% | -0.04% | 0.58% | 1.95% | 3.35% | 4.64% | 5.07% | 25.46% | 35.59% | 32.14% | 28.70% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Analog Devices Inc. | 7.60% | 7.32% | 6.83% | 5.46% | 3.75% | 3.23% | 2.50% | 2.66% | 7.86% | 7.23% | 6.56% | 5.69% | 5.15% | 5.21% | 5.67% | — | — | — | — | — | — | — | — | |||||||
| Applied Materials Inc. | 21.19% | 22.31% | 23.07% | 24.41% | 25.40% | 26.54% | 25.76% | 22.80% | 21.68% | 18.40% | 16.55% | 16.19% | 15.05% | 13.37% | 14.30% | — | — | — | — | — | — | — | — | |||||||
| Broadcom Inc. | 19.44% | 19.10% | 17.54% | 15.69% | 14.20% | 12.45% | 10.69% | 8.91% | 8.00% | 6.47% | 5.14% | 3.90% | 3.13% | 3.08% | 3.26% | — | — | — | — | — | — | — | — | |||||||
| Intel Corp. | -0.87% | -0.50% | -1.54% | 4.40% | 7.61% | 11.21% | 13.96% | 11.80% | 12.56% | 12.00% | 12.35% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| KLA Corp. | 25.64% | 25.79% | 24.99% | 26.37% | 26.21% | 25.57% | 24.46% | 20.23% | 18.68% | 13.93% | 13.85% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Lam Research Corp. | 25.55% | 26.68% | 25.91% | 26.78% | 27.37% | 27.51% | 27.40% | 24.59% | 22.64% | 19.28% | 17.33% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Micron Technology Inc. | -4.43% | 2.42% | 9.11% | 13.11% | 15.18% | 14.17% | 12.02% | 9.96% | 7.38% | 5.91% | 5.59% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| NVIDIA Corp. | 14.71% | 17.80% | 20.92% | 22.07% | 20.20% | 18.32% | 17.30% | 15.05% | 14.23% | 13.46% | 14.27% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
| Qualcomm Inc. | 17.58% | 21.80% | 23.54% | 26.39% | 27.35% | 25.19% | 23.32% | 21.93% | 23.74% | 21.58% | 17.95% | 14.60% | 8.49% | 12.67% | 12.81% | — | — | — | — | — | — | — | — | |||||||
| Texas Instruments Inc. | 22.44% | 24.85% | 28.25% | 32.16% | 34.25% | 34.69% | 32.51% | 31.48% | 31.45% | 32.64% | 31.44% | — | — | — | — | — | — | — | — | — | — | — | — | |||||||
Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30).
1 Q3 2023 Calculation
ROA = 100
× (Net income (loss)Q3 2023
+ Net income (loss)Q2 2023
+ Net income (loss)Q1 2023
+ Net income (loss)Q4 2022)
÷ Total assets
= 100 × (580,300 + 546,200 + 507,200 + 437,900)
÷ 16,116,100 = 12.85%
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding profitability and asset management over the observed periods.
- Net Income
- Net income experienced significant fluctuations throughout the quarters. Initially, there was strong profitability with values generally above 100,000 thousand USD, except for a considerable loss in the December 31, 2017 quarter, where net income recorded a negative 251,086 thousand USD. Following this loss, net income recovered and showed moderate gains, with occasional volatility, before rising steadily from 2019 onward. From March 31, 2021, net income consistently increased each quarter, reaching a peak of 580,300 thousand USD by December 31, 2022, indicating improving operational performance and earnings stability.
- Total Assets
- Total assets showed a marked shift during the period. Initially, assets were relatively stable around 7.8 to 8.3 billion USD up to March 31, 2018. However, there was an abrupt increase in the following quarters, with total assets nearly doubling to approximately 19.2 billion USD by June 30, 2018. After this peak, the asset base gradually declined over the subsequent quarters, falling to about 16.1 billion USD by the end of 2022. This decline in assets might reflect asset sales, depreciation, or revaluation effects, suggesting a strategic reduction or realignment of asset holdings.
- Return on Assets (ROA)
- The ROA percentage demonstrated variable performance across the timeline. Early quarters displayed moderate ROA levels, fluctuating between 0.15% and 7.5%, with the lowest point coinciding with the period of net income loss. From 2019 onwards, ROA improved steadily, reflecting enhanced efficiency in generating profits from asset investment. By the final quarters, ROA reached an all-time high of approximately 12.85%, coinciding with increasing net income and reducing asset base, suggesting improved asset utilization and profitability.
In summary, the company showed resilience after a significant loss in late 2017, achieving sustained growth in net income while managing a decreasing asset base. The rising ROA throughout the later periods indicates more efficient asset use and stronger financial performance, although the reasons behind the substantial asset reduction would merit further investigation for comprehensive assessment.