Micron Technology Inc. (NASDAQ:MU)

The financial data reveals several notable trends in intangible assets and related components over the analysis period.

Product and Process Technology

The value showed an increase from 616 million USD in 2020 to a peak of 742 million USD in 2022. However, a decline followed in 2023, dropping to 613 million USD, with moderate recovery in 2024 and a slight decrease again in 2025, ending at 662 million USD. This pattern indicates some volatility, with an overall growth trend interrupted by fluctuations in the last three years.

Other Intangible Assets

Values for the 'Other' category appeared only in the final two years, recording 11 million USD in 2024 and 8 million USD in 2025. This suggests the emergence or recognition of new intangible components late in the timeline.

Intangible Assets, Gross Amount

The gross amount closely parallels the product and process technology values, rising steadily from 616 million USD in 2020 to 742 million USD in 2022, followed by a decline to 613 million USD in 2023 and a recovery up to 694 million USD in 2024 before slightly decreasing again in 2025. This pattern aligns with changes in specific intangible asset categories, reflecting an overall dynamic but generally upward trend in total intangible gross assets over the period.

Accumulated Amortization

Accumulated amortization remained relatively stable from 2020 to 2022, around -280 to -320 million USD, with an unexpected reduction in amortization in 2023 to -209 million USD. The figures rebound in 2024 and 2025 to -278 million and -217 million USD respectively, indicating fluctuating amortization expenses or adjustments in asset valuations during these years.

Net Intangible Assets

Calculated as gross intangible assets minus accumulated amortization, net intangible assets increased steadily from 334 million USD in 2020 to 421 million USD in 2022. A slight decline to 404 million USD occurred in 2023 before a consistent increase resumed through 2024 and 2025, reaching 453 million USD. This reflects a net growth in intangible asset value despite periodic adjustments in amortization.

Goodwill

Goodwill maintained a constant value of 1,228 million USD from 2020 through 2022, then declined to 1,150 million USD in 2023 and remained steady thereafter. The reduction in 2023 may indicate impairment or revaluation relating to acquired assets or business units.

Total Intangible Assets and Goodwill

The combined total showed a growth trajectory from 1,562 million USD in 2020 to a peak of 1,649 million USD in 2022. This total then decreased to 1,554 million USD in 2023 but gradually rebounded to 1,603 million USD by 2025. The overall trend demonstrates expansion in intangible asset value coupled with some volatility, substantially influenced by goodwill adjustments in 2023.

In summary, the data indicates growth in intangible assets and goodwill over the timeline, punctuated by fluctuations attributable to amortization changes and goodwill revaluation. The emergence of the 'Other' intangible category in later years may reflect diversification or recognition of new asset types. These trends suggest active management and periodic reassessment of intangible asset values across the analyzed periods.

The financial data over the reported periods reveals several notable trends and fluctuations in key balance sheet and income statement items.

Total Assets

Both reported and adjusted total assets demonstrate a generally upward trajectory from 2020 through 2025. Reported total assets increased from approximately $53.7 billion in 2020 to $82.8 billion in 2025, reflecting significant growth. Adjusted total assets exhibit a similar pattern, indicating consistent asset growth even after adjustments for goodwill.

Shareholders' Equity

Reported shareholders' equity follows an overall increasing trend, rising from around $39.0 billion in 2020 to $54.2 billion in 2025. Adjusted shareholders' equity shows parallel movement but at slightly lower levels due to adjustments. There is a dip in 2023 compared to 2022, where reported equity decreases from $49.9 billion to $44.1 billion before recovering in subsequent years.

Net Income (Loss) Attributable to Micron

Net income shows considerable volatility. After steady growth from $2.7 billion in 2020 to a peak of $8.7 billion in 2022, the company experiences a significant loss in 2023, with reported net income turning negative by approximately $5.8 billion and adjusted net income by about $5.7 billion. This loss interrupts the overall positive trajectory before net income returns to a positive $778 million in 2024 and climbs back to $8.5 billion in 2025.

Goodwill Adjustments

The close alignment between reported and adjusted figures for total assets, shareholders' equity, and net income suggests that goodwill adjustments have a relatively consistent impact across the periods. Adjusted values are slightly lower than reported values, reflecting the exclusion or modification of goodwill effects, but do not alter the fundamental trends observed.

In summary, the company demonstrates strong asset and equity growth over the long term, interrupted by a substantial net income loss in 2023. The swift recovery in net income thereafter indicates resilience. Goodwill adjustments moderate financial metrics without changing the overall financial health trends.

The financial performance over the analyzed periods reveals notable fluctuations across profitability, efficiency, and leverage metrics.

Net Profit Margin

The reported net profit margin exhibited a generally increasing trend from 2020 through 2022, rising from 12.54% to a peak of 28.24%. However, in the subsequent period, a significant decline occurred reaching a negative margin of -37.54% in 2023. The margin partially recovered in the following years, returning to positive territory with 3.1% and 22.84% respectively. The adjusted net profit margin followed a similar pattern, suggesting goodwill adjustments had minimal impact on this ratio.

Total Asset Turnover

The total asset turnover ratio remained relatively stable from 2020 to 2022, hovering near 0.4 to 0.47, indicating consistent asset utilization efficiency. A sharp drop to 0.24 was recorded in 2023, aligning with the reduction in profitability. Subsequent years saw a recovery to 0.36 and 0.45, nearing prior levels. Adjusted ratios were slightly higher but followed identical trends, reflecting stable operational efficiency when excluding goodwill effects.

Financial Leverage

Financial leverage ratios ranged between approximately 1.33 and 1.55, showing a gradual increase over time. Except for a small decline in 2021 and 2022, leverage rose noticeably in the 2023 and later periods. The consistent higher leverage in adjusted figures indicates that goodwill adjustments slightly increase the leverage ratio but do not alter its overall trend. This gradual increase suggests growing reliance on debt or increased use of equity relative to assets over the years.

Return on Equity (ROE)

ROE followed the net profit margin trend, increasing from around 7% in 2020 to nearly 18% in 2022, before plunging to negative values near -13% in 2023. Recovery was observed afterward, with ROE returning to positive values in 2024 and 2025, reaching approximately 16%. Adjusted ROE figures were marginally higher but mirrored the same trajectory, indicating that goodwill has a modest impact on equity returns.

Return on Assets (ROA)

ROA trends aligned closely with ROE and profit margin developments. A steady increase from 5% in 2020 to over 13% in 2022 was followed by a sharp decline to negative -9% in 2023. The subsequent periods saw a recovery to just above 10% by 2025. Adjusted ROA was slightly greater than reported ROA, signifying minor goodwill adjustment effects.

Overall, the data reflects a pattern of improving profitability and efficiency leading up to 2022, a significant downturn in 2023, and a partial to substantial recovery thereafter. The deterioration in 2023 across profitability, asset turnover, and returns indicates a potential operational or market challenge during that year. Despite rising financial leverage, the company managed to restore positive performance metrics in later years. Adjustments for goodwill generally produced marginally better outcomes but did not alter the fundamental trends observed.

Net Income (Loss) Attributable to Micron

The reported net income exhibited significant volatility over the examined periods. Initially, there was a positive and increasing trend from 2,687 million USD in 2020 to a peak of 8,687 million USD in 2022. A sharp reversal occurred in 2023 with a notable loss of 5,833 million USD. This loss was somewhat reduced in the adjusted figures to 5,732 million USD. In subsequent years, profitability returned, with 778 million USD in 2024 and a substantial recovery to 8,539 million USD in 2025, indicating a strong rebound.

Adjusted Net Income (Loss) Attributable to Micron

The adjusted net income mirrored the reported figures closely, indicating that adjustments primarily involved items not impacting core profitable operations dramatically. The negative mark in 2023 persisted after adjustments but was slightly mitigated. The sharp swings suggest external or non-recurring factors heavily influenced the 2023 results, while 2024–2025 showed a clear recovery trend in adjusted profitability.

Net Profit Margin (Reported)

The reported net profit margin followed a pattern consistent with net income fluctuations. Starting at 12.54% in 2020, it improved considerably through 2021 and 2022, reaching 28.24%, reflecting heightened profitability. The 2023 period saw a drastic deterioration to a negative margin of -37.54%, signaling deep operational or market challenges. Margins rebounded in 2024 to a marginal 3.1% and further improved markedly to 22.84% in 2025, signifying restoration of efficient profit generation.

Adjusted Net Profit Margin

The adjusted net profit margin showed a similar trajectory with minor differences in the 2023 period, where the margin was slightly less negative at -36.89%. This suggests that non-operational adjustments had a limited but material impact on margin calculation for that year. The recovery pattern post-2023 is evident, with margins improving to 3.1% and then to 22.84% in the following years, consistent with net income improvements.

Overall Insights

The data reveals a highly cyclical performance with strong growth phases followed by a pronounced downturn in 2023. The alignment of reported and adjusted figures implies that unusual or non-recurring items influenced the 2023 loss but did not entirely explain the scale of negative results. The swift recovery in 2024 and 2025 suggests effective management response and improved market conditions or operational efficiencies. The company demonstrated resilience by returning to profitability and margin levels approaching or exceeding prior highs within two years of the downturn.

Total Assets

The total assets have shown a consistent upward trajectory over the analyzed periods. Reported total assets increased from approximately 53.7 billion US dollars in 2020 to 82.8 billion US dollars by 2025, representing substantial growth. Similarly, adjusted total assets followed a comparable path, growing from 52.5 billion US dollars in 2020 to 81.6 billion US dollars in 2025. This steady increase indicates an expansion in the asset base, reflecting possible investments, acquisitions, or growth in operational scale.

Total Asset Turnover

The total asset turnover ratios reveal fluctuations across the periods. Reported total asset turnover started at 0.4 and improved to 0.47 by 2021, maintaining near this level in 2022 at 0.46. There was a pronounced decline in 2023 to 0.24, indicating a reduced efficiency in asset utilization during that year. Following this dip, the turnover ratio recovered to 0.36 in 2024 and further to 0.45 in 2025. Adjusted total asset turnover mirrors this trend closely, with ratios slightly higher but exhibiting the same pattern of increase, sharp decrease, and subsequent recovery. These fluctuations suggest variable operational efficiency or changing revenue generation relative to the asset base in certain years, particularly the notable downturn in 2023 before improvement in subsequent periods.

Overall Insights

The analysis highlights significant expansion in asset volume over the five-year span, signaling growth initiatives or accumulation of asset value. Despite growing assets, asset utilization efficiency experienced volatility, with a marked performance dip midway, followed by a recovery phase. The close alignment between reported and goodwill adjusted figures suggests that the adjustments for goodwill do not materially alter the observed trends. Management may need to focus on understanding and addressing the causes behind the temporary drop in asset turnover to sustain and enhance operational efficiency amid a growing asset base.

The analysis covers the financial position of the company over a six-year period, focusing on total assets, shareholders’ equity, and financial leverage ratios in both reported and goodwill-adjusted terms.

Total Assets

Reported total assets increased steadily from approximately $53.7 billion in 2020 to $82.8 billion in 2025. There was a slight dip in 2023 before continuing the upward trend. The adjusted total assets, which exclude goodwill, followed a very similar pattern, rising from around $52.4 billion in 2020 to $81.6 billion in 2025. The close alignment between reported and adjusted figures indicates that goodwill makes up a relatively small portion of total assets and that the asset base growth is substantive and consistent.

Shareholders’ Equity

Reported shareholders’ equity grew from about $39.0 billion in 2020 to $54.2 billion in 2025, reflecting an overall strengthening of the company’s net asset position. There was a marked decline in 2023, with equity dropping to roughly $44.1 billion, after peaking near $49.9 billion in 2022, before resuming growth. Adjusted shareholders’ equity exhibited the same trend, slightly lower in absolute terms, moving from $37.8 billion in 2020 to $53.0 billion in 2025. The decline in equity in 2023 could reflect impairments, losses, dividend payments, or other factors impacting net assets during that year.

Financial Leverage

The reported financial leverage ratio, defined as total assets divided by shareholders’ equity, declined slightly from 1.38 in 2020 to 1.33 in 2022, indicating a modest reduction in financial risk or reliance on debt financing. However, the ratio increased to 1.54 by 2024, reflecting a rise in leverage, before slightly stabilizing at 1.53 in 2025. The adjusted financial leverage showed nearly identical values and trends, starting at 1.39 in 2020, dipping to 1.34 in 2022, then rising sharply to 1.55 in 2024 and settling at 1.54 in 2025. The upward trend in leverage from 2022 onward suggests increased borrowing or other liabilities relative to equity, pointing to a potentially higher financial risk profile in the more recent years.

In summary, the company’s asset base has expanded considerably over the period, supported by growth in shareholders’ equity, albeit with a notable reduction in equity in 2023. The financial leverage has decreased during the early years but has increased since 2022, indicating a shift toward greater use of debt or liabilities in financing the company’s assets. The close alignment between reported and goodwill-adjusted figures suggests minor effects from goodwill on the financial structure.

The financial data indicates notable volatility in the company's profitability over the observed periods, particularly reflected in the net income figures and corresponding return on equity (ROE) metrics.

Net Income Trends

The reported net income shows a general upward trend from 2020 through 2022, increasing from approximately $2.7 billion to nearly $8.7 billion. However, this positive trajectory is disrupted in 2023, which reflects a substantial loss of about $5.8 billion, signaling a significant negative event or operational challenge impacting profitability. In subsequent years, net income rebounds, showing recovery with positive results of $778 million in 2024 and a strong resurgence to approximately $8.5 billion in 2025. The adjusted net income closely follows these patterns, indicating that goodwill adjustments do not materially alter the overall profitability trend.

Shareholders' Equity

Shareholders’ equity shows a steady increase over the five-year span, rising from roughly $38.0 billion in 2020 to $54.1 billion by 2025. This growth trend is consistent whether considering reported or adjusted figures, with adjusted equity slightly lower than reported equity across all periods, suggesting some reduction for goodwill adjustments but maintaining a similar progression. The steady equity base provides a relatively stable capital foundation amid fluctuating earnings.

Return on Equity (ROE)

The reported ROE demonstrates a pattern consistent with the volatility seen in net income. It rises from 6.89% in 2020 to a peak of 17.41% in 2022, reflecting strong profitability relative to shareholders’ equity. In 2023, ROE turns sharply negative at -13.22%, corresponding with the substantial loss reported that year. The subsequent years show recovery to low but positive ROE of around 1.72% in 2024 and a renewed increase to 15.76% in 2025. Adjusted ROE mirrors this behavior closely but tends to be slightly higher than reported ROE, indicating that adjustments for goodwill tend to modestly enhance the observed return ratios.

Overall, the data reveals a company experiencing a significant earnings disruption in 2023 but managing a robust recovery thereafter. The steady increase in shareholders’ equity suggests ongoing capital accumulation or retained earnings over time, supporting the potential for sustainable operations. The close alignment between reported and adjusted figures indicates that goodwill amortization or impairment has a limited effect on core profitability and equity measures, ensuring the reported trends are reflective of underlying business performance rather than accounting adjustments.

Net Income Trends

The reported net income attributable to the company showed an initial upward trajectory from 2,687 million USD in 2020 to a peak of 8,687 million USD in 2022. Following this peak, a significant decline occurred in 2023, resulting in a loss of 5,833 million USD. The net income then partially recovered in 2024 to 778 million USD and experienced a notable increase to 8,539 million USD in 2025. Adjusted net income mirrored these trends closely, with minor differences during the loss period in 2023.

Total Assets Trends

The reported total assets increased steadily over the six-year period, starting at 53,678 million USD in 2020 and rising to 82,798 million USD by 2025. Adjusted total assets followed a similar growth pattern, albeit slightly lower in value each year compared to the reported figures, indicating adjustments primarily related to goodwill or similar accounting considerations.

Return on Assets (ROA) Analysis

Both reported and adjusted ROA exhibited parallel trends consistent with net income fluctuations. ROA improved considerably from 5.01% to 13.11% (reported) between 2020 and 2022, reflecting enhanced profitability relative to asset base. This was succeeded by a sharp negative ROA of -9.08% in 2023, indicating operational challenges or impairments. Partial recovery was observed in 2024 with ROA around 1.12%-1.14%, followed by a substantial improvement to approximately 10.3%-10.5% in 2025. Adjusted ROA values were consistently marginally higher than reported, signifying positive effects from goodwill adjustments.

General Observations

The financial data reveals a volatile performance characterized by strong growth in profits and asset base up to 2022, adversity in 2023 marked by losses and negative returns, and a strong rebound in the following years. Asset growth remained consistently positive despite profitability fluctuations, suggesting continued investment or acquisition activity. The closeness of reported and adjusted figures implies that goodwill adjustments had limited impact on overall financial trends but provided slight improvements in profitability metrics.