Micron Technology Inc. (NASDAQ:MU)

The financial data over the observed periods reveals significant fluctuations in key profitability and cost metrics expressed as a percentage of revenue.

Cost of Goods Sold (COGS)

The cost of goods sold as a percentage of revenue shows considerable variability, beginning around -41.68% and escalating to a peak of -132.66% around September 2022, indicating periods of substantial cost overruns relative to revenue. Subsequently, COGS trends downward, reaching approximately -62.28% by May 2025, suggesting improved cost control or changes in pricing and production efficiencies.

Gross Margin

Gross margin reflects an inverse trend to COGS, initially high at 58.32% but gradually declining to negative territory around September 2022 (-32.66%) indicating a significant erosion of product profitability during this interval. Starting in early 2023, gross margin recovers steadily, approaching mid-to-high 30% by mid-2025, signifying a restoration of core operational profitability.

Research and Development (R&D)

R&D expenses as a percentage of revenue generally range between approximately -7.7% and -21.3%, with a marked increase in R&D intensity during the period from mid-2021 to early 2023, peaking just above -21%. This uptick may reflect heightened investment in technology or new product development amidst challenging gross margins. Afterward, R&D spending moderates to around -10.4%, indicating a normalization of expenditure relative to revenue.

Selling, General, and Administrative Expenses (SG&A)

SG&A costs maintain a relatively narrow band between approximately -2.5% and -6.3% of revenue. Notably, SG&A expenses increase moderately during the period coinciding with heightened R&D spending and reduced gross margins, then decline again toward the end of the timeline. This pattern suggests a management focus on controlling overheads after operational challenges.

Restructure and Asset Impairments

These items are sporadic, with occasional small charges noted, but a significant impairment charge of approximately -6.1% occurs around late 2021. Smaller charges appear intermittently, indicating episodic restructuring costs or write-downs impacting profitability during some quarters.

Operating Income (Loss)

Operating income exhibits strong volatility, starting at a healthy 47.5% of revenue but declining sharply into negative territory by the third quarter of 2022 (-62.36%). This steep decline aligns with gross margin deterioration and increased costs. From early 2023 onwards, operating income recovers progressively, reaching over 20% by mid-2025, mirroring improvements in gross margin and cost controls.

Interest Income and Interest Expense

Interest income increases over time from below 0.5% to around 3.3% of revenue in the early 2020s before tapering slightly. Interest expense rises from about -0.4% to peaks near -3.2% during 2022-2023, then decreases, suggesting changing debt levels or interest rates affecting net financing costs.

Net Income

Net income as a percentage of revenue parallels operating income trends. It starts strongly positive, declines notably into large negative values (-62.6% around September 2022), before recovering above 20% by mid-2025. This pattern illustrates the impact of operational profitability swings combined with other income statement factors such as taxes and non-operating items on the bottom line.

Income Tax (Provision) Benefit

Tax rate effects as a percentage of revenue vary considerably, often negative (tax expense), with some quarters showing positive tax benefits. Significant fluctuations in tax provision timing and magnitude may be influenced by varying profitability and one-time tax adjustments.

Other Operating and Non-Operating Items

Other operating income/expense and non-operating income/expense items are relatively minor in magnitude but contribute to quarter-to-quarter variability in profitability. These items cause occasional positive or negative adjustments but do not display a consistent trend.

Overall, the data reflect a period of substantial volatility with a deterioration in profitability and gross margins beginning around 2021-2022, attributable primarily to sharply rising costs and impairments. During this challenging phase, the company increased R&D and maintained SG&A expenditure, indicating investment in innovation despite financial pressures. A marked recovery in margins and profitability is evident from early 2023 onward, reflecting effective cost management and operational improvements. Financing costs have increased and then moderately declined, influencing net income trends. The pattern suggests a cyclical impact on financial performance with recovery initiatives starting to bear fruit by the most recent periods analyzed.