Return on Capital (ROC)
Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.
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Micron Technology Inc. pages available for free this week:
- Statement of Comprehensive Income
- Balance Sheet: Assets
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Profitability Ratios
- Analysis of Geographic Areas
- Common Stock Valuation Ratios
- Enterprise Value to FCFF (EV/FCFF)
- Price to FCFE (P/FCFE)
- Return on Equity (ROE) since 2005
- Total Asset Turnover since 2005
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Return on Invested Capital (ROIC)
Micron Technology Inc., ROIC calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Invested capital2 | |||||||
| Performance Ratio | |||||||
| ROIC3 | |||||||
| Benchmarks | |||||||
| ROIC, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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).
1 NOPAT. See details »
2 Invested capital. See details »
3 2025 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × ÷ =
4 Click competitor name to see calculations.
- Net Operating Profit After Taxes (NOPAT)
- The company's NOPAT exhibited a generally upward trend from 2020 to 2022, increasing from approximately 2.9 billion USD to over 9 billion USD. However, in 2023, there was a significant reversal with a sharp decline to a negative value of around 5.9 billion USD. This negative performance reversed in the following years, with NOPAT recovering to 857 million USD in 2024 and rising substantially to approximately 8.7 billion USD in 2025.
- Invested Capital
- Invested capital showed steady growth over the entire period, rising from around 42.3 billion USD in 2020 to over 61 billion USD in 2025. The increase was consistent year-over-year, indicating ongoing investment and capital allocation in the business despite fluctuations in profitability.
- Return on Invested Capital (ROIC)
- The ROIC mirrored the trends observed in NOPAT. It grew substantially from 6.84% in 2020 to a peak of 17.2% in 2022, reflecting increasing efficiency and profitability of invested capital. In 2023, ROIC turned negative (-11.01%), reflecting the negative NOPAT during that year. The ratio then improved in the subsequent years, reaching 1.61% in 2024 and further increasing to 14.24% in 2025, indicating a recovery in capital returns.
- Summary of Trends
- Overall, the data reveals a pattern of expanding investments paired with volatile profitability. The company experienced strong growth in operating profit and returns on capital until 2022, followed by a significant downturn in 2023, likely indicating operational or market challenges during that period. The subsequent recovery in 2024 and 2025 demonstrates resilience and improved earning capacity, resulting in renewed positive returns on invested capital. The steady growth in invested capital throughout the period suggests strategic investments were maintained even in the face of fluctuating profits.
Decomposition of ROIC
Micron Technology Inc., decomposition of ROIC
| ROIC | = | OPM1 | × | TO2 | × | 1 – CTR3 | |
|---|---|---|---|---|---|---|---|
| Aug 28, 2025 | = | × | × | ||||
| Aug 29, 2024 | = | × | × | ||||
| Aug 31, 2023 | = | × | × | ||||
| Sep 1, 2022 | = | × | × | ||||
| Sep 2, 2021 | = | × | × | ||||
| Sep 3, 2020 | = | × | × |
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).
1 Operating profit margin (OPM). See calculations »
2 Turnover of capital (TO). See calculations »
3 Effective cash tax rate (CTR). See calculations »
- Operating Profit Margin (OPM)
- The operating profit margin demonstrated a fluctuating trajectory over the analyzed periods. Initially, a notable upward trend was observed, increasing from 14.37% in 2020 to a peak of 31.5% in 2022. However, this was followed by a steep decline in 2023, reaching a negative margin of -36.77%. The subsequent years showed a recovery, with margins improving to 5.12% and then rising significantly to 25.89% by 2025. This pattern indicates volatility in operating profitability with a severe downturn in 2023, followed by a strong rebound.
- Turnover of Capital (TO)
- The turnover of capital exhibited moderate variability across the periods. Starting at 0.51 in 2020, it increased slightly to 0.6 in 2021, then marginally decreased to 0.58 in 2022. A sharp decline occurred in 2023, falling to 0.29, representing a significant decrease in efficiency in using capital. The ratio improved again in the following years, reaching 0.47 in 2024 and 0.61 in 2025, suggesting a recovery in asset utilization efficiency.
- 1 – Effective Cash Tax Rate (CTR)
- The effective cash tax rate displayed elevated values near or above 90% for the majority of the periods, indicating a high tax burden relative to operating cash flow. From 93.87% in 2020, it remained consistently high through 2022, reaching 100% in 2023, which may reflect either full cash tax payment relative to earnings or accounting effects during that year. The rate then decreased significantly to 66.71% in 2024, before increasing again to 90.05% in 2025. This variability suggests fluctuations in tax obligations or tax planning effectiveness over time.
- Return on Invested Capital (ROIC)
- The return on invested capital exhibited a pattern similar to operating margin, with initial growth from 6.84% in 2020, reaching a high of 17.2% in 2022. This was followed by a sharp deterioration in 2023, producing a negative return of -11.01%. Subsequent recovery was evident with a modest positive return of 1.61% in 2024 and a robust increase to 14.24% in 2025. The trends suggest significant fluctuations in the company's ability to generate returns on its capital investments, likely influenced by the operational challenges experienced during 2023.
Operating Profit Margin (OPM)
Micron Technology Inc., OPM calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Add: Cash operating taxes2 | |||||||
| Net operating profit before taxes (NOPBT) | |||||||
| Revenue | |||||||
| Profitability Ratio | |||||||
| OPM3 | |||||||
| Benchmarks | |||||||
| OPM, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
OPM = 100 × NOPBT ÷ Revenue
= 100 × ÷ =
4 Click competitor name to see calculations.
- Revenue Trends
- The revenue shows an overall increasing trend over the periods analyzed. Starting from 21,435 million US dollars in 2020, it rose steadily to reach 30,758 million US dollars in 2022. However, there was a notable decline in 2023 to 15,540 million US dollars, representing a significant decrease. Subsequently, revenue recovered and increased substantially in 2024 and 2025, reaching a peak of 37,378 million US dollars in 2025. This indicates some volatility with a sharp dip in one period followed by a strong rebound.
- Net Operating Profit Before Taxes (NOPBT) Trends
- The NOPBT reflects considerable fluctuations during the observed periods. Beginning at 3,080 million US dollars in 2020, it more than doubled by 2021 to 6,413 million US dollars and increased further to 9,688 million US dollars in 2022. However, a significant downturn occurred in 2023, resulting in a substantial negative value of -5,714 million US dollars, indicating operating losses before taxes. This adverse result was followed by a recovery in the subsequent years, with values returning to positive figures, reaching 9,676 million US dollars in 2025. The sharp negative swing in 2023 suggests exceptional challenges or one-time charges during that year.
- Operating Profit Margin (OPM) Trends
- The operating profit margin generally exhibited a positive and improving trend from 2020 through 2022, increasing from 14.37% to 31.5%, indicating enhanced operational efficiency and profitability relative to revenue. However, this was sharply reversed in 2023 with a steep negative margin of -36.77%, reflecting significant operational losses. The margin then recovered in the following years, improving to 5.12% in 2024 and further to 25.89% in 2025. This pattern mirrors the net operating profit before taxes trend and underscores the cyclical or volatile nature of operational performance during the timeframe analyzed.
- Overall Analysis
- The financial data reveals strong growth in revenue and profitability in the initial years, followed by a severe downturn in 2023 across all key metrics, including revenue, net operating profit before taxes, and operating profit margin. This suggests the occurrence of considerable adverse factors or market conditions impacting operational performance during that year. The subsequent years show a recovery phase with values approaching or surpassing prior peak levels, indicating a potential revival in the company’s operating environment or internal improvements. The volatility observed highlights the importance of monitoring operational risks and the company’s ability to navigate challenging periods.
Turnover of Capital (TO)
Micron Technology Inc., TO calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Revenue | |||||||
| Invested capital1 | |||||||
| Efficiency Ratio | |||||||
| TO2 | |||||||
| Benchmarks | |||||||
| TO, Competitors3 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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).
1 Invested capital. See details »
2 2025 Calculation
TO = Revenue ÷ Invested capital
= ÷ =
3 Click competitor name to see calculations.
- Revenue
- Revenue demonstrated an overall upward trend from 2020 to 2025, starting at $21,435 million in 2020 and increasing to $37,378 million by 2025. Notable fluctuations occurred during this period. A significant increase was observed from 2020 to 2022, peaking at $30,758 million in 2022. This was followed by a sharp decline in 2023 to $15,540 million, representing nearly a 50% drop from the previous year. However, revenue rebounded substantially in 2024 and 2025, rising to $25,111 million and $37,378 million respectively, surpassing all previous years.
- Invested Capital
- Invested capital showed a steady upward trajectory throughout the period. Starting at $42,291 million in 2020, it increased consistently each year, reaching $61,173 million in 2025. The incremental growth was relatively stable, with no declines or major volatility, reflecting ongoing investment in assets or resources over time.
- Turnover of Capital (TO)
- The turnover of capital ratio exhibited variability over the years. Initially, it improved from 0.51 in 2020 to 0.60 in 2021, indicating enhanced efficiency in generating revenue from invested capital. It then slightly decreased to 0.58 in 2022 before declining sharply to 0.29 in 2023, mirroring the significant drop in revenue during that year. Subsequently, the ratio improved again to 0.47 in 2024 and reached 0.61 in 2025, exceeding previous ratios and indicating improved capital utilization.
- Overall Analysis
- The company experienced strong growth in revenue and invested capital over the five-year span, with a notable interruption in 2023 marked by a revenue dip and decreased capital turnover. This disruption was followed by a rapid recovery and improved efficiency in the later years. The data reflects resilience and effective management in capital deployment, resulting in superior revenue generation capacity by 2025 compared to earlier periods.
Effective Cash Tax Rate (CTR)
Micron Technology Inc., CTR calculation, comparison to benchmarks
| Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net operating profit after taxes (NOPAT)1 | |||||||
| Add: Cash operating taxes2 | |||||||
| Net operating profit before taxes (NOPBT) | |||||||
| Tax Rate | |||||||
| CTR3 | |||||||
| Benchmarks | |||||||
| CTR, Competitors4 | |||||||
| Advanced Micro Devices Inc. | |||||||
| Analog Devices Inc. | |||||||
| Applied Materials Inc. | |||||||
| Broadcom Inc. | |||||||
| Intel Corp. | |||||||
| KLA Corp. | |||||||
| Lam Research Corp. | |||||||
| NVIDIA Corp. | |||||||
| Qualcomm Inc. | |||||||
| Texas Instruments Inc. | |||||||
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).
1 NOPAT. See details »
2 Cash operating taxes. See details »
3 2025 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × ÷ =
4 Click competitor name to see calculations.
- Cash Operating Taxes
- The cash operating taxes exhibit fluctuations throughout the periods, starting at $189 million in 2020 and increasing significantly to $618 million by 2022. A sharp decline to $172 million occurred in 2023, followed by a rebound to $428 million in 2024, and a further increase to $963 million in 2025. This pattern suggests variability in taxable income and/or tax planning strategies over the years.
- Net Operating Profit Before Taxes (NOPBT)
- The NOPBT showed substantial growth from $3,080 million in 2020 to a peak of $9,688 million in 2022, indicating strong operational profitability. However, there was a steep decline to a negative $5,714 million in 2023, suggesting a notable operational loss. Following this, the company recovered to $1,285 million in 2024 and further improved to $9,676 million in 2025, indicating a volatile yet generally upward trend with significant challenges faced in 2023.
- Effective Cash Tax Rate (CTR)
- The effective cash tax rate showed modest fluctuations around 6-7% from 2020 to 2022, reflecting stable tax efficiency relative to profits. No value is recorded for 2023, possibly due to the negative NOPBT that year. In 2024, the tax rate spiked substantially to 33.29%, an atypical increase that may be attributed to specific tax events or lower tax shields following recovery. The rate then normalized to 9.95% in 2025, indicating a partial return to the prior effective tax burden level.