Micron Technology Inc. (NASDAQ:MU)

The financial data reveals a range of trends in intangible assets and related categories over the examined periods.

Product and Process Technology

The value of product and process technology showed a generally increasing trend from 2019 through 2022, rising from $583 million to a peak of $742 million. However, it declined notably to $613 million in 2023, before partially recovering to $683 million in 2024. This pattern suggests investment growth followed by a contraction and then stabilization.

Other Intangible Assets

An entry labeled "Other" appears only in 2024 with a value of $11 million, indicating the recognition or categorization of new intangible assets not previously recorded.

Intangible Assets, Gross Amount

The gross amount mirrored the trend of product and process technology closely, initially increasing from $583 million in 2019 to $742 million in 2022, then falling to $613 million in 2023, and rising again to $694 million in 2024. This consistency supports the primary role of product and process technology within gross intangible assets.

Accumulated Amortization

Accumulated amortization increased steadily from -$243 million in 2019 to -$321 million in 2022, indicating continuous amortization of intangible assets over time. Interestingly, it decreased to -$209 million in 2023 before increasing back to -$278 million in 2024, a fluctuation that may reflect amortization method changes, asset disposals, or impairment considerations.

Net Intangible Assets

Net intangible assets (gross amount minus accumulated amortization) increased gradually from $340 million in 2019 to a high of $421 million in 2022. There was a slight decline to $404 million in 2023 followed by a modest increase to $416 million in 2024, suggesting a relatively stable asset base with minor year-over-year adjustments.

Goodwill

Goodwill remained constant at $1,228 million from 2019 through 2022, then decreased to $1,150 million in 2023 and remained steady in 2024. This decrease may indicate impairment charges, divestitures, or revaluations impacting the carrying amount of goodwill.

Total Intangible Assets and Goodwill

The combined figure remained relatively stable, fluctuating marginally between $1,550 million and $1,650 million across the years. It peaked at $1,649 million in 2022 before dropping to $1,554 million in 2023 and slightly rising again to $1,566 million in 2024. The general stability suggests that overall intangible assets and goodwill are being maintained with periodic adjustments rather than dramatic changes.

The financial data reveals several notable trends over the six-year period under review. Total assets, both reported and adjusted for goodwill, have shown an overall upward trajectory. Reported total assets increased from 48,887 million US dollars in 2019 to 69,416 million US dollars in 2024, reflecting a growth pattern despite a slight decline observed in 2023. Adjusted total assets follow a similar trend, rising steadily from 47,659 million US dollars in 2019 to 68,266 million US dollars in 2024, again with a minor dip apparent in the prior year.

Shareholders’ equity, on both a reported and adjusted basis, also increased consistently from 2019 through 2022. Reported equity grew from 35,881 million US dollars in 2019 to a peak of 49,907 million US dollars in 2022 before declining to 45,131 million US dollars by 2024. The adjusted equity mirrors this trend with values rising from 34,653 million US dollars in 2019 to 48,679 million US dollars in 2022, followed by a decrease to 43,981 million US dollars in 2024. The reduction in equity after 2022 indicates some negative equity impacts, which may relate to operational results or other comprehensive income components.

Net income attributable to the company exhibited volatility. From 2019 to 2022, reported net income showed a fluctuating upward trend, reaching a high of 8,687 million US dollars in 2022 after an initially steep drop in 2020. However, a significant negative turnaround occurred in 2023 with a loss of 5,833 million US dollars reported, followed by partial recovery to a positive 778 million US dollars in 2024. The adjusted net income aligns closely with the reported figures, differing only marginally in 2023. This substantial loss in 2023 contrasts with the prior years' profitability and suggests extraordinary or non-recurring items impacting earnings during that period.

In summary, the company’s asset base and equity strengthened over the early years but faced headwinds post-2022. The profitability trend was strong until 2022, was sharply negative in 2023, and showed signs of recovery by 2024. The adjustments for goodwill are consistent with reported figures, indicating that goodwill does not materially distort the overall financial position or performance trends.

Total Assets

Consistently increased from 2019 to 2024, with a minor decline in 2023.

Shareholders’ Equity

Grew steadily until 2022, then decreased in 2023 and 2024.

Net Income

Volatile with growth until 2022, followed by a significant loss in 2023 and recovery in 2024.

Adjustment Impact

Goodwill adjustments had minimal effect on overall patterns and trends.

Net Profit Margin

The reported and adjusted net profit margins exhibit a fluctuating trend over the periods analyzed. Initially, the margin was relatively high at approximately 27% in 2019, then declined sharply to around 12.5% in 2020. It recovered significantly to over 28% by 2022, followed by a substantial drop to negative territory near -37.5% in 2023. The margin improved slightly in 2024 to approximately 3.1%, indicating some recovery but remaining low compared to earlier years.

Total Asset Turnover

Both reported and adjusted total asset turnover ratios show a general declining pattern from 0.48 in 2019 to a recent low near 0.24 in 2023. Slight improvements are observed in 2024, with ratios increasing to around 0.36-0.37. This suggests reduced efficiency in asset use during the middle years, with some recovery noticed in the latest period.

Financial Leverage

Financial leverage ratios demonstrate a gradual upward trend throughout the periods. Starting at approximately 1.36-1.38 in 2019, leverage increased steadily, peaking at about 1.54-1.55 in 2024. This indicates a growing reliance on debt or other liabilities relative to equity over time.

Return on Equity (ROE)

ROE values, both reported and adjusted, follow a pattern similar to net profit margins. Beginning at moderate levels near 17-18% in 2019, ROE declined sharply in 2020, then improved through 2021 and 2022. However, a dramatic drop into negative figures around -13% occurred in 2023, followed by a slight recovery to about 1.7% in 2024. This reflects volatility in shareholder returns, driven largely by profits and leverage changes.

Return on Assets (ROA)

ROA indicators also mirror the patterns seen in profitability and efficiency ratios. Starting near 13% in 2019, ROA decreased to around 5% in 2020 and then improved gradually to over 13% by 2022. The ratio turned markedly negative in 2023, around -9%, before modestly recovering to approximately 1.1% in 2024. This pattern underscores challenges in asset profitability, particularly in the latest fiscal year.

The financial data over the periods from 2019 to 2024 reveals notable fluctuations in both reported and adjusted net income, as well as in net profit margins.

Net Income Trends

Reported net income showed a strong initial performance in 2019 with 6,313 million USD, followed by a significant decrease to 2,687 million USD in 2020. The income then recovered in 2021 to 5,861 million USD and further increased in 2022 to 8,687 million USD. However, 2023 experienced a sharp reversal to a negative net income of -5,833 million USD, before improving again to a positive 778 million USD in 2024.

The adjusted net income data mirrors the reported figures closely, with a slight difference observed in 2023 where adjusted net income was -5,732 million USD compared to the reported -5,833 million USD. This indicates that goodwill adjustments had minimal impact on net income figures.

Net Profit Margin Trends

The reported net profit margin followed a similar pattern to net income, starting at a high of 26.97% in 2019, decreasing significantly to 12.54% in 2020, then rebounding to 21.16% in 2021 and increasing further to 28.24% in 2022. In 2023, the margin turned sharply negative to -37.54%, reflecting the net loss in that year, before recovering to 3.1% in 2024.

The adjusted net profit margin aligns closely with the reported margin, with only a minor difference in 2023, where the adjusted margin was -36.89% compared to the reported -37.54%, again showing the limited effects of goodwill adjustments on profitability ratios.

Overall, the data indicates a period of strong profitability from 2019 through 2022, followed by a substantial downturn in 2023 that led to a reported net loss and negative profit margin. The subsequent year shows signs of recovery, although the profitability remains significantly below prior peak levels. Goodwill adjustments appear to have only a marginal effect on the reported financial outcomes and profit margins during the analyzed periods.

Total Assets

The reported total assets demonstrated a consistent upward trend from US$48,887 million in 2019 to US$69,416 million in 2024, indicating sustained growth in the company's asset base over the six-year period. The adjusted total assets, which exclude goodwill, follow a similar growth pattern, rising from US$47,659 million in 2019 to US$68,266 million in 2024. This close alignment suggests that goodwill represents a relatively small portion of the total assets and that the growth in assets is broadly attributable to tangible and other intangible assets.

Total Asset Turnover

The reported total asset turnover ratio exhibits some volatility with a generally declining trend over the period analyzed. Starting at 0.48 in 2019, the ratio decreased to 0.40 in 2020, then recovered slightly to 0.47 and 0.46 in 2021 and 2022 respectively, before dropping sharply to 0.24 in 2023 and recovering partially to 0.36 in 2024. The adjusted total asset turnover mirrors this pattern closely, reflecting a decreasing efficiency in asset utilization, particularly notable in 2023, followed by a partial rebound in 2024.

Insights

The data indicates significant asset growth over the years, which has not been consistently matched by proportional increases in asset turnover. This suggests that while the company is expanding its asset base, its efficiency in generating revenue from these assets has declined, especially during 2023. The partial recovery in asset turnover in 2024 might point to operational improvements or changes in asset management. The similarity between reported and adjusted metrics underscores that goodwill does not materially distort the overall asset base or asset efficiency trends.

The analysis of the financial data over the six-year period reveals several notable trends in the company’s asset base, shareholders’ equity, and financial leverage ratios.

Total Assets

Reported total assets showed a consistent upward trajectory from 48,887 million US dollars in 2019 to 69,416 million US dollars in 2024, marking an overall increase of approximately 42%. The adjusted total assets, which likely reflect goodwill adjustments, followed a similar growth pattern, expanding from 47,659 million US dollars to 68,266 million US dollars during the same period. Both reported and adjusted figures indicate steady asset growth with a slight dip in 2023, before reaching the highest values in 2024.

Total Shareholders’ Equity

Reported shareholders’ equity increased from 35,881 million US dollars in 2019 to a peak of 49,907 million US dollars in 2022, reflecting a period of robust equity growth. However, there was a significant decline in 2023 to 44,120 million US dollars, followed by a modest recovery to 45,131 million US dollars in 2024. The adjusted shareholders’ equity mirrored this trend closely, rising to 48,679 million US dollars in 2022 before decreasing to 42,970 million US dollars in 2023 and slightly increasing to 43,981 million US dollars by 2024. This pattern may suggest increased equity volatility in the later years.

Financial Leverage

Financial leverage ratios were relatively stable from 2019 through 2022, with reported leverage fluctuating narrowly between 1.33 and 1.38. Starting in 2023, there was a noticeable increase in leverage, with reported leverage rising to 1.46 and further to 1.54 by 2024. Adjusted leverage ratios exhibit a parallel trend, increasing from 1.34 in 2022 to 1.55 in 2024. The upward trend in financial leverage indicates a growing reliance on debt or other liabilities relative to equity financing in recent years.

Overall, the data reflect a company experiencing steady asset growth and increasing financial leverage, with shareholders’ equity showing a peak and subsequent decline after 2022. This combination may signal strategic shifts in capital structure or operational challenges affecting equity retention in the most recent periods.

The financial data exhibits considerable fluctuations in net income attributable to the company over the analyzed periods. Reported net income peaked at 6,313 million USD in August 2019, then experienced a significant decrease to 2,687 million USD by September 2020. This was followed by a recovery, reaching 8,687 million USD as of September 2022. However, the figures took a sharp downturn thereafter, showing a substantial loss of 5,833 million USD in August 2023, before slightly rebounding to a positive 778 million USD by August 2024.

The adjusted net income data mirrors this trend closely, with minor differences in the reported loss figures observed during the latter periods, indicating that goodwill adjustments had a limited impact on net income values.

Regarding the company's equity, reported total shareholders’ equity exhibited a steady increase from 35,881 million USD in August 2019 to a peak of 49,907 million USD in September 2022. However, equity declined to 44,120 million USD by August 2023, followed by a small increase to 45,131 million USD in August 2024. Adjusted shareholders’ equity showed a similar trajectory but consistently remained slightly lower than the reported figures, indicating the effect of goodwill adjustments on equity valuation.

Return on equity (ROE) echoed the net income trends, with reported ROE starting at a robust 17.59% in 2019, declining sharply to 6.89% in 2020, recovering to 17.41% by 2022, and then turning negative to -13.22% in 2023, before improving modestly to 1.72% in 2024. Adjusted ROE figures align closely with the reported values but are marginally higher in percentage points.

Summary of Key Financial Trends

There is notable volatility in profitability, with alternating periods of growth and significant loss within the five-year span.

Shareholders’ equity generally trended upward until 2022, with some erosion occurring in subsequent years, while adjustments for goodwill consistently reduced equity values.

Return on equity closely follows net income movements, signaling sensitivity to earnings fluctuations, including a pronounced negative return in the most recent loss year.

The alignment between reported and adjusted figures suggests that goodwill adjustments have a modest but consistent impact, primarily reducing net income and equity.

An examination of the annual financial data reveals several notable trends and fluctuations over the six-year period.

Net Income (Loss) Attributable to the Company

Reported net income experienced significant volatility. Starting at a high of 6,313 million USD in 2019, it dropped sharply to 2,687 million USD in 2020 before rebounding to 5,861 million USD in 2021 and further increasing to 8,687 million USD in 2022. However, in 2023, there was a marked reversal with a substantial loss of 5,833 million USD, followed by a modest recovery to a positive 778 million USD in 2024.

The adjusted net income figures largely mirror this trend, indicating that goodwill adjustments had minimal impact on the income figures reported.

Total Assets

Reported total assets showed a general upward trajectory over the period. They increased from 48,887 million USD in 2019 to 69,416 million USD in 2024, despite a slight decline observed between 2022 and 2023.

Adjusted total assets also followed a similar pattern, steadily growing from 47,659 million USD to 68,266 million USD across the same years, corroborating the reported asset trend after removing goodwill effects.

Return on Assets (ROA)

Reported ROA exhibited variability aligning with net income trends. It began at a robust 12.91% in 2019 and decreased significantly to 5.01% in 2020. Improvements were seen in 2021 (9.96%) and 2022 (13.11%), before dropping sharply into negative territory (-9.08%) in 2023, and recovering slightly to 1.12% in 2024.

The adjusted ROA values were consistently slightly higher than reported ROA but followed the same overall trend, indicating minor differences in asset base calculations do not materially affect asset profitability metrics.

Overall, the financial data conveys a period of growth in asset size and profitability until 2022, followed by a severe setback in 2023, with partial recovery in 2024. The adjustments for goodwill have minimal impact on reported profitability and asset base, supporting the reliability of core financial performance trends.