Common-Size Income Statement
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- Analysis of Liquidity Ratios
- Analysis of Short-term (Operating) Activity Ratios
- Price to FCFE (P/FCFE)
- Capital Asset Pricing Model (CAPM)
- Operating Profit Margin since 2005
- Return on Equity (ROE) since 2005
- Return on Assets (ROA) since 2005
- Price to Earnings (P/E) since 2005
- Price to Book Value (P/BV) since 2005
- Analysis of Debt
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Micron Technology Inc., common-size consolidated income statement
Based on: 10-K (reporting date: 2025-08-28), 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03).
- Revenue and Cost of Goods Sold
- The company's revenue remained stable, consistently representing 100% across all periods. However, the cost of goods sold (COGS) as a percentage of revenue displayed considerable volatility. Initially, COGS decreased from approximately 69.43% to 54.82% between 2020 and 2022, indicating an improvement in production efficiency or cost management. This trend reversed sharply in 2023, with COGS exceeding 100%, significantly impacting profitability. Following this peak, COGS decreased again over the subsequent two years, reaching 60.21% by 2025, suggesting a return to more controlled cost levels.
- Gross Margin
- Gross margin showed a positive trend from 30.57% in 2020 to a peak of 45.18% in 2022, indicating an increasing profitability at the gross level during this period. However, in 2023, gross margin turned negative (-9.11%), corresponding with the spike in COGS exceeding revenue. After this setback, gross margin partially recovered, reaching 39.79% in 2025, though still slightly below the 2022 peak.
- Operating Expenses
- Research and development (R&D) expenses as a percentage of revenue fluctuated but remained within a range of approximately 9.61% to 20.04%, with a notable increase in 2023, likely reflecting strategic investment or response to market conditions. Selling, general, and administrative (SG&A) expenses remained relatively stable, oscillating between about 3.22% and 5.92% of revenue, with a peak in 2023. Employee severance and asset impairments were sporadic but present, contributing marginally to expense rises in certain years, particularly in 2023 and 2025.
- Special Charges and Gains
- Several non-recurring items affected financial performance during the observed periods. Patent license charges and goodwill impairments occurred sporadically, typically exerting a negative impact on income. A notable patent cross-license agreement gain of 0.8% of revenue was recognized in 2024, providing a positive one-off boost. Restructuring and asset impairments fluctuated, with higher charges in 2021 and 2023, indicating organizational adjustments and asset write-downs during these years.
- Operating Income
- Operating income demonstrated strong growth from 14.01% of revenue in 2020 to a peak of 31.54% in 2022. This positive trajectory was interrupted in 2023 by a substantial operating loss of -36.97%, reflecting the extraordinary increase in COGS and higher operating expenses. Recovery followed in 2024 and 2025, with operating income improving to 5.19% and then 26.14%, respectively, suggesting effective cost control and operational adjustments post-2023 downturn.
- Interest and Non-Operating Items
- Interest income remained low but increased notably in 2023 to 3.01%, then declined in subsequent years. Interest expense showed a similar pattern, rising in 2023 before declining. Currency exchange effects and losses on debt prepayments were marginal but present in 2024 and 2025, slightly reducing income. Overall, non-operating income and expenses had limited impact on the company's profitability, showing minor fluctuations without strong directional trends.
- Income Before Taxes and Net Income
- Income before income tax provision closely followed operating income trends, reaching a high of 31.12% in 2022 before dropping sharply to -36.41% in 2023. Subsequent recovery brought this figure to 25.83% by 2025. Income tax provision remained relatively consistent as a small percentage of revenue, with slight increases during years of higher pre-tax income. Net income mirrored these trends, peaking at 28.24% in 2022, turning negative in 2023 (-37.54%), and rebounding to 22.84% by 2025. Net income attributable to the company followed the same trajectory, indicating no significant noncontrolling interests affecting results.
- Overall Interpretation
- The financial data reveals a company experiencing solid growth and profitability improvements from 2020 through 2022, driven by increasing gross margins and controlled operating expenses. The year 2023 marks a significant disruption, characterized by an unusual spike in cost of goods sold exceeding revenue, leading to negative gross margin and operating losses. This anomaly suggests operational challenges or extraordinary costs incurred that year. The following two years demonstrate a strong recovery phase, with margins and profitability metrics approaching prior peak levels. The company’s ability to manage expenses and recover operating income after the downturn illustrates resilience and effective management response. Non-recurring items and tax provisions had moderate effects but did not substantially alter the overall financial trends.