Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Micron Technology Inc. (NASDAQ:MU)

Return on Capital (ROC)

Advanced level

Return on Invested Capital (ROIC)

Micron Technology Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,891  6,650  14,057  5,418  (7) 3,200 
Invested capital2 42,291  38,774  35,408  28,526  22,012  16,740 
Performance Ratio
ROIC3 6.84% 17.15% 39.70% 18.99% -0.03% 19.12%
Benchmarks
ROIC, Competitors4
Advanced Micro Devices Inc. 11.73% 13.53% 2.05% -14.86% -27.01%
Analog Devices Inc. 6.95% 8.23% 4.98% 0.38% 23.10% 15.63%
Apple Inc. 150.10% 98.34% 83.60% 101.81% 114.33% 142.21%
Applied Materials Inc. 28.91% 29.78% 31.69% 20.54% 11.10%
Broadcom Inc. 5.00% 10.03% 3.52% -1.55% 15.58%
Cisco Systems Inc. 24.12% 18.12% 2.85% 19.68% 23.64% 22.15%
Intel Corp. 26.74% 23.84% 10.03% 16.51% 17.27%
Lam Research Corp. 24.20% 20.10% 25.72% 31.56% 10.67% 15.45%
NVIDIA Corp. 19.63% 79.86% 41.40% 40.74% 31.19% 28.18%
Qualcomm Inc. 27.48% 28.27% -16.74% 1.92% 27.12% 19.77%
Texas Instruments Inc. 43.15% 44.66% 32.30% 28.86% 24.07%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 NOPAT. See details »

2 Invested capital. See details »

3 2020 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 2,891 ÷ 42,291 = 6.84%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Micron Technology Inc.’s ROIC deteriorated from 2018 to 2019 and from 2019 to 2020.

Decomposition of ROIC

Micron Technology Inc., decomposition of ROIC

Microsoft Excel LibreOffice Calc
ROIC = OPM1 × TO2 × 1 – CTR3
Sep 3, 2020 6.84% = 14.37% × 0.51 × 93.87%
Aug 29, 2019 17.15% = 29.89% × 0.60 × 95.06%
Aug 30, 2018 39.70% = 47.86% × 0.86 × 96.64%
Aug 31, 2017 18.99% = 28.39% × 0.71 × 93.92%
Sep 1, 2016 -0.03% = 1.37% × 0.56 × -4.15%
Sep 3, 2015 19.12% = 21.08% × 0.97 × 93.76%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2020 year is the decrease in profitability measured by operating profit margin (OPM) ratio.


Operating Profit Margin (OPM)

Micron Technology Inc., OPM calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,891  6,650  14,057  5,418  (7) 3,200 
Add: Cash operating taxes2 189  345  489  351  177  213 
Net operating profit before taxes (NOPBT) 3,080  6,995  14,546  5,769  170  3,413 
 
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Profitability Ratio
OPM3 14.37% 29.89% 47.86% 28.39% 1.37% 21.08%
Benchmarks
OPM, Competitors4
Advanced Micro Devices Inc. 6.80% 5.88% 2.42% -5.94% -12.88%
Analog Devices Inc. 26.98% 29.60% 30.11% 21.16% 30.31% 23.13%
Apple Inc. 24.65% 24.64% 26.58% 26.64% 26.39% 30.76%
Applied Materials Inc. 23.89% 26.89% 29.01% 22.15% 17.40%
Broadcom Inc. 15.65% 24.22% 12.14% -2.93% 24.07%
Cisco Systems Inc. 30.47% 25.46% 26.21% 27.94% 27.26% 23.84%
Intel Corp. 33.40% 30.95% 26.66% 21.44% 25.84%
Lam Research Corp. 27.26% 20.46% 29.43% 27.76% 18.88% 18.03%
NVIDIA Corp. 26.65% 33.09% 32.77% 24.50% 14.96% 15.98%
Qualcomm Inc. 24.17% 29.86% 1.24% 9.45% 26.09% 20.10%
Texas Instruments Inc. 40.81% 43.25% 41.06% 37.64% 32.94%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × 3,080 ÷ 21,435 = 14.37%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Micron Technology Inc.’s OPM deteriorated from 2018 to 2019 and from 2019 to 2020.

Turnover of Capital (TO)

Micron Technology Inc., TO calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Revenue 21,435  23,406  30,391  20,322  12,399  16,192 
Invested capital1 42,291  38,774  35,408  28,526  22,012  16,740 
Efficiency Ratio
TO2 0.51 0.60 0.86 0.71 0.56 0.97
Benchmarks
TO, Competitors3
Advanced Micro Devices Inc. 1.97 2.43 2.39 1.90 1.82
Analog Devices Inc. 0.31 0.33 0.33 0.26 0.85 0.86
Apple Inc. 7.10 4.79 8.83 4.47 5.26 6.05
Applied Materials Inc. 1.44 1.52 1.20 1.09 0.83
Broadcom Inc. 0.38 0.47 0.35 0.29 0.81
Cisco Systems Inc. 0.96 0.95 1.00 0.87 1.04 1.13
Intel Corp. 0.89 0.94 0.94 0.92 0.91
Lam Research Corp. 1.02 1.15 1.15 1.15 0.64 0.95
NVIDIA Corp. 0.77 2.45 1.50 1.71 2.08 1.89
Qualcomm Inc. 1.33 1.13 1.21 0.45 1.30 1.21
Texas Instruments Inc. 1.19 1.26 1.26 1.11 1.06

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 Invested capital. See details »

2 2020 Calculation
TO = Revenue ÷ Invested capital
= 21,435 ÷ 42,291 = 0.51

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Micron Technology Inc.’s TO deteriorated from 2018 to 2019 and from 2019 to 2020.

Effective Cash Tax Rate (CTR)

Micron Technology Inc., CTR calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Sep 3, 2020 Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015
Selected Financial Data (US$ in millions)
Net operating profit after taxes (NOPAT)1 2,891  6,650  14,057  5,418  (7) 3,200 
Add: Cash operating taxes2 189  345  489  351  177  213 
Net operating profit before taxes (NOPBT) 3,080  6,995  14,546  5,769  170  3,413 
Tax Rate
CTR3 6.13% 4.94% 3.36% 6.08% 104.15% 6.24%
Benchmarks
CTR, Competitors4
Advanced Micro Devices Inc. 12.55% 5.44% 64.46%
Analog Devices Inc. 16.31% 14.82% 50.33% 93.08% 10.78% 21.70%
Apple Inc. 14.27% 16.60% 64.38% 14.50% 17.63% 23.61%
Applied Materials Inc. 16.09% 27.18% 8.67% 14.87% 23.00%
Broadcom Inc. 15.10% 11.38% 16.03% 19.97%
Cisco Systems Inc. 17.40% 24.92% 89.18% 19.15% 16.48% 17.77%
Intel Corp. 10.33% 18.16% 59.84% 16.68% 26.25%
Lam Research Corp. 13.09% 14.26% 24.00% 1.52% 11.77% 10.13%
NVIDIA Corp. 4.59% 1.47% 15.99% 2.78% -0.02% 6.81%
Qualcomm Inc. 14.19% 16.37% 1,215.96% 54.68% 20.15% 19.01%
Texas Instruments Inc. 11.38% 18.14% 37.69% 31.13% 30.79%

Based on: 10-K (filing date: 2020-10-19), 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2020 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 189 ÷ 3,080 = 6.13%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Micron Technology Inc.’s CTR increased from 2018 to 2019 and from 2019 to 2020.