Stock Analysis on Net
Stock Analysis on Net

Micron Technology Inc. (NASDAQ:MU)

$24.99

Common-Size Income Statement

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Micron Technology Inc., common-size consolidated income statement

Microsoft Excel
12 months ended: Aug 29, 2024 Aug 31, 2023 Sep 1, 2022 Sep 2, 2021 Sep 3, 2020 Aug 29, 2019
Revenue
Cost of goods sold
Gross margin
Research and development
Selling, general, and administrative
Restructure and asset impairments
Patent cross-license agreement gain
Gain (loss) on disposition of property, plant, and equipment
Goodwill impairment
Litigation settlement
Patent license charges
Other
Other operating income (expense), net
Operating income (loss)
Interest income
Interest expense
Gain (loss) on investments
Gain (loss) on debt repurchases and conversions
Other
Other non-operating income (expense), net
Income (loss) before income tax provision and equity in net income (loss) of equity method investees
Income tax provision
Equity in net income (loss) of equity method investees
Net income (loss)
Net income attributable to noncontrolling interests
Net income (loss) attributable to Micron

Based on: 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), 10-K (reporting date: 2019-08-29).

Revenue and Cost of Goods Sold
Revenue remained constant at 100% across all periods, serving as the baseline for analysis. Cost of goods sold (COGS) exhibited significant volatility, starting at -54.28% and peaking dramatically at -109.11% in the period ending August 31, 2023, indicating a substantial increase in production or procurement costs relative to revenue. This peak was followed by a decline to -77.65% in the subsequent period, suggesting some mitigation in cost pressures yet remaining elevated compared to earlier years.
Gross Margin Trends
Gross margin as a percentage of revenue showed a downward trend from 45.72% in 2019 to a low of -9.11% in 2023, reflecting the extreme cost increases in that year. The margin partially recovered to 22.35% in 2024 but remained well below historical levels, highlighting ongoing challenges in maintaining profitability at the gross level.
Operating Expenses
Research and development costs fluctuated, peaking at -20.04% in 2023, which was nearly double the 2019 level of -10.43%, suggesting increased investment or escalated expenses in innovation during the challenging period. Selling, general, and administrative expenses rose modestly during the downturn, reaching -5.92% in 2023 before declining slightly to -4.5%. Restructuring and asset impairments were generally small but notable in 2021 and 2023, indicating occasional non-recurring costs. Other operating income and expenses varied without a clear pattern but showed a positive spike to 1% in 2024.
Non-Operating Items
Interest income and expense both increased over time, with interest income rising to 3.01% in 2023 and falling slightly thereafter. Interest expense showed a peak at -2.5% in 2023 but declined slightly in the latest period. Gains and losses on investments and on debt repurchases were minor and volatile without a consistent trend. The presence of a patent cross-license agreement gain in 2024 (0.8%) and a decline in losses on property disposition suggested some favorable non-operating influences in the latest period.
Income and Profitability
Operating income experienced a marked decline, from a strong positive 31.51% in 2019 to a substantial loss of -36.97% in 2023, reflecting the gross margin collapse and elevated operating costs. By 2024, operating income improved but remained low at 5.19%. Income before tax and net income mirrored this pattern, showing sharp declines in 2023 followed by modest recoveries. Net income attributable to the company dropped from 26.97% to -37.54% in 2023, followed by a recovery to 3.1% in 2024, indicating significant volatility likely driven by cost pressures and market conditions.
Tax and Equity Income
Income tax provision remained relatively stable and low as a percentage of revenue, ranging between -1.14% and -2.96%. Equity in net income of equity method investees was minimal across all periods, showing no material impact on overall profitability.
Summary Insights
The data reveals a period of considerable financial stress around 2023, characterized by a severe increase in cost of goods sold and operating expenses, resulting in negative gross margins and net losses. The subsequent partial recovery in 2024 suggests some stabilization efforts. Elevated research and development expenses during the downturn indicate strategic investment possibly aimed at long-term growth. Non-operating gains in 2024 contributed somewhat to improved profitability. Overall, the financial performance exhibits high cyclicality with significant susceptibility to cost fluctuations and operational challenges.