Micron Technology Inc. (NASDAQ:MU)

Total Asset Turnover

The reported total asset turnover ratio fluctuated over the periods, starting at 0.48 in 2019, declining to 0.40 in 2020, recovering to around 0.46-0.48 in the subsequent two years, then dropping sharply to 0.24 in 2023 before improving to 0.36 in 2024. The adjusted figures closely mirror this pattern, indicating consistency in the measure across reporting adjustments. Overall, the asset utilization efficiency experienced a notable dip in the penultimate period but showed signs of partial recovery in the latest period.

Debt to Equity and Debt to Capital Ratios

Both reported and adjusted debt to equity ratios exhibited a relatively stable trend from 2019 through 2022, hovering around 0.14 to 0.19. However, there was a marked increase to approximately 0.30-0.32 in 2023 and stability at that higher level in 2024. Similarly, debt to capital ratios remained low and steady through 2022, around 0.12 to 0.16, then rose substantially to about 0.23-0.24 in 2023 and remained there in 2024. This indicates a significant increase in leverage starting in 2023, sustained into the following year.

Financial Leverage

Reported and adjusted financial leverage ratios remained relatively flat from 2019 through 2022, within the range of approximately 1.33 to 1.38. In 2023 and 2024, these ratios increased to 1.46 and further to 1.54, signaling increased reliance on debt or higher asset base relative to equity. This trend aligns with the observed increase in debt ratios during the same periods.

Net Profit Margin

The net profit margin showed considerable volatility across the years. Initially, reported margins were high at 26.97% in 2019, then declined to a lower level around 12-21% between 2020 and 2021, increasing again to over 27% in 2022. A drastic decline occurred in 2023, turning negative at approximately -37.5%, before rebounding to a modest positive 3.1% in 2024. Adjusted net profit margins followed a similar trajectory, confirming the earnings volatility and particularly the significant loss experienced in 2023.

Return on Equity (ROE)

Reported ROE showed a downward trend from 17.59% in 2019 to a low of 6.89% in 2020, a partial recovery to above 17% in 2022, followed by a sharp negative return of -13.22% in 2023, and a slight improvement to 1.72% in 2024. Adjusted ROE values reflected a consistent pattern, corroborating these fluctuations. The data suggests that shareholder returns were highly challenged during the 2023 period due to losses, with only marginal recovery in the subsequent year.

Return on Assets (ROA)

Reported ROA moved in a similar manner to ROE and net profit margin: starting at 12.91% in 2019, decreasing to around 5.0% in 2020, improving to just above 13% by 2022, then sharply turning negative at -9.08% in 2023, and slightly recovering to 1.12% in 2024. The adjusted ROA figures are closely aligned with these trends. The decline to negative performance reflects operational challenges impacting asset profitability in the 2023 period, with the latest data suggesting some stabilization.

Revenue Trends

Over the analyzed periods, revenue exhibited significant fluctuations. Initially, revenue decreased from 23,406 million USD in 2019 to 21,435 million USD in 2020. This decline was followed by a robust growth phase, with revenue reaching 27,705 million USD in 2021 and further increasing to 30,758 million USD in 2022. However, 2023 saw a sharp decline to 15,540 million USD, representing a substantial contraction. In 2024, revenue partially recovered, rising to 25,111 million USD, yet remaining below the peak observed in 2022.

Total Assets Evolution

Total assets demonstrated a consistent upward trajectory throughout the periods, increasing from 48,887 million USD in 2019 to 69,416 million USD in 2024. Despite minor fluctuations, including a slight dip from 66,283 million USD in 2022 to 64,254 million USD in 2023, the overall asset base expanded steadily, reflecting ongoing investment or asset accumulation.

Asset Turnover Analysis (Reported)

Reported total asset turnover ratio displayed variability aligned with revenue fluctuations. The ratio declined from 0.48 in 2019 to 0.40 in 2020, indicating reduced efficiency in using assets to generate revenue. Subsequently, the ratio improved to 0.47 in 2021 and remained relatively stable at 0.46 in 2022. The notable revenue drop in 2023 corresponded with a decline in asset turnover to 0.24, suggesting diminished asset utilization efficiency during that year. In 2024, asset turnover recovered to 0.36 but did not reach previous higher levels.

Adjusted Total Assets and Turnover

Adjusted total assets followed a comparable pattern to total assets, increasing from 48,614 million USD in 2019 to 68,896 million USD in 2024. Adjusted total asset turnover mirrored the reported turnover closely, affirming reliability in the adjusted measurement. The turnover declined from 0.48 in 2019 to 0.40 in 2020, peaked at 0.48 in 2021, slightly decreased to 0.47 in 2022, and dropped markedly to 0.24 in 2023. The 2024 improvement to 0.36 aligns with the observed recovery in revenue and asset utilization.

Overall Insights

The data reveals a period of growth in revenue and assets up to 2022, followed by a sharp contraction in revenue and asset turnover in 2023, likely indicating operational challenges or external market impacts during that year. Despite the revenue decline, total assets continued to grow, implying sustained investment or less efficient asset usage. The partial recovery in 2024 suggests potential stabilization or improvement in operational performance, though asset turnover has not fully returned to earlier levels.

Total Debt

The total debt of the company exhibited a gradual increase from 2019 through 2022, rising from $5,851 million to $6,906 million. A significant rise occurred between 2022 and 2023, with total debt almost doubling from $6,906 million to $13,330 million, followed by a slight increase to $13,397 million in 2024. This marks a substantial increase in financial leverage over the most recent years.

Total Shareholders’ Equity

Total shareholders’ equity showed a consistent upward trend from 2019 ($35,881 million) to 2022 ($49,907 million), indicating growth in the company’s net worth during this period. However, equity dropped notably in 2023 to $44,120 million and then slightly increased to $45,131 million in 2024, suggesting some volatility or revaluation in the company’s equity base in the latter years.

Reported Debt to Equity Ratio

The reported debt to equity ratio remained relatively stable and low from 2019 to 2022, fluctuating between 0.14 and 0.17, which reflects a conservative capital structure. From 2023 onwards, the ratio doubled to 0.30 and maintained that level in 2024, indicating a significant increase in debt relative to equity and a less conservative leverage position.

Adjusted Total Debt

Adjusted total debt closely parallels the trend in reported total debt, increasing steadily from $6,415 million in 2019 to $7,576 million in 2022, then experiencing a sharp rise to $13,999 million in 2023 and marginally increasing to $14,078 million in 2024. This confirms the trend of rising leverage when taking additional adjustments into account.

Adjusted Total Equity

Adjusted total equity increased steadily from $36,035 million in 2019 to $49,218 million in 2022, showing a positive growth trajectory. However, a decline to $43,481 million occurred in 2023, with a slight recovery to $44,670 million in 2024, mirroring the trend observed in reported equity and suggesting some downward pressure on equity values in recent years.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio remained low and stable from 2019 to 2022, between 0.15 and 0.19, reinforcing a conservative financial stance in this period. This ratio then increased significantly to 0.32 in 2023 and remained at this elevated level in 2024, consistent with the reported ratio increase and indicating a materially higher leveraged position in recent years.

Total Debt

Total debt increased steadily from 2019 through 2022, rising from $5.851 billion to approximately $6.906 billion. There was a significant jump in 2023, where total debt nearly doubled to $13.33 billion, and remained stable through 2024 at about $13.40 billion. This suggests a notable increase in leverage or borrowing during this period.

Total Capital

Total capital demonstrated consistent growth year over year from 2019 to 2024. It rose from $41.73 billion in 2019 to approximately $58.53 billion in 2024. The most substantial absolute increases occurred between 2020 and 2022, with slower growth in the subsequent years.

Reported Debt to Capital Ratio

The reported debt to capital ratio remained relatively stable and low from 2019 to 2022, fluctuating between 0.12 and 0.15, indicating a moderate use of debt financing relative to capital. However, there was a marked increase in 2023 to 0.23, which persisted into 2024. This reflects a considerable shift towards higher leverage during the latest years in the data.

Adjusted Total Debt

Adjusted total debt followed a trend similar to reported total debt, increasing steadily from $6.415 billion in 2019 to $7.576 billion in 2022. A sharp increase was observed in 2023, with adjusted debt reaching $13.999 billion, maintaining nearly the same level in 2024 at $14.08 billion. The pattern indicates that adjusted debt consistently aligns with reported figures but shows slightly higher debt values overall.

Adjusted Total Capital

Adjusted total capital exhibited growth similar to total capital, increasing from $42.45 billion in 2019 to $58.75 billion in 2024. The growth trend was steady, with minor fluctuations, supporting a stable capital base that expanded over the entire period.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio was stable from 2019 through 2021, ranging from 0.15 to 0.16, then declined slightly to 0.13 in 2022, indicating moderate leverage. There was a noticeable increase in 2023 to 0.24, mirrored in 2024, indicating increased reliance on debt relative to capital after a relatively low and stable period.

Total Assets

Total assets demonstrated a consistent upward trend from 48,887 million USD in 2019 to 69,416 million USD in 2024. There was a steady increase each year with the exception of a slight decline observed in 2023, where total assets decreased from 66,283 million USD in 2022 to 64,254 million USD before rising again in 2024.

Total Micron Shareholders’ Equity

Total shareholders' equity exhibited a generally increasing trend from 35,881 million USD in 2019, peaking at 49,907 million USD in 2022. However, it declined significantly in 2023 to 44,120 million USD and showed a modest recovery in 2024, reaching 45,131 million USD. Overall, equity growth was robust until 2022 but saw erosion in the subsequent period.

Reported Financial Leverage (Total Assets/Equity)

The reported financial leverage ratio remained relatively stable around 1.33 to 1.38 from 2019 through 2022, indicating a consistent balance between assets and equity. Starting in 2023, a noticeable increase occurred, rising from 1.46 to 1.54 in 2024. This suggests a trend towards greater use of debt or liabilities relative to equity in the later years.

Adjusted Total Assets

Adjusted total assets followed a trend closely matching the reported total assets, increasing from 48,614 million USD in 2019 to 68,896 million USD in 2024. The pattern also includes the same slight dip in 2023, mirroring the reported figures, confirming consistency in adjusted valuation adjustments.

Adjusted Total Equity

Adjusted equity showed a consistent increase from 36,035 million USD in 2019 to 49,218 million USD in 2022 before declining to 43,481 million USD in 2023 and slightly recovering to 44,670 million USD in 2024. This trend mirrors the movement in reported equity, reinforcing the observation of eroding equity post-2022.

Adjusted Financial Leverage

The adjusted financial leverage ratio maintained a stable level near 1.33 to 1.38 from 2019 through 2022, before climbing to 1.46 in 2023 and further to 1.54 in 2024. This increase aligns with the reported leverage, indicating an increased reliance on liabilities over equity in the recent period.

Revenue

The revenue exhibited fluctuations over the periods analyzed. Starting at $23,406 million in 2019, it decreased slightly to $21,435 million in 2020. Subsequently, revenue rose to a peak of $30,758 million in 2022, followed by a sharp decline to $15,540 million in 2023. In the most recent period, revenue rebounded to $25,111 million, indicating recovery though still below the 2022 peak.

Net Income (Loss) Attributable to Micron

The net income showed significant volatility. It declined substantially from $6,313 million in 2019 to $2,687 million in 2020, then recovered to $8,687 million by 2022. However, there was a steep reversal in 2023 with a net loss of $5,833 million, followed by a partial recovery to a net income of $778 million in 2024.

Reported Net Profit Margin

The reported net profit margin mirrored the trends in net income. It decreased from 26.97% in 2019 to 12.54% in 2020, rose again to 28.24% in 2022, then sharply dropped to a negative margin of -37.54% in 2023. The margin showed slight improvement to 3.1% in 2024, remaining relatively low compared to earlier years.

Adjusted Net Income (Loss)

The adjusted net income followed a similar pattern to the reported net income, indicating that adjustments had a limited impact on the overall trend. The amount decreased from $6,693 million in 2019 to $2,882 million in 2020, peaked at $8,419 million in 2022, and then fell dramatically to a loss of $5,592 million in 2023. In 2024, adjusted net income rose to $991 million, showing modest recovery.

Adjusted Net Profit Margin

The adjusted net profit margin fluctuated consistently with the adjusted net income, decreasing from 28.6% in 2019 to 13.45% in 2020, increasing to 27.37% in 2022, before plunging to -35.98% in 2023. In 2024, it improved marginally to 3.95%, indicating slight profitability improvement relative to the prior year.

Overall Analysis

The financial performance displayed a cyclical pattern, characterized by initial declines in 2020, recovery peaking around 2022, and a significant downturn in 2023, followed by partial recovery in 2024. The steep losses and negative margins in 2023 signify a challenging period, impacting both reported and adjusted figures. Revenues and profitability metrics, despite recent improvements, have not fully stabilized at historic highs, indicating ongoing volatility and the potential for continued fluctuations.

Net Income (Loss) attributable to Micron

The net income exhibits significant volatility over the observed periods. It peaked at 6,313 million USD in 2019, followed by a notable decline to 2,687 million USD in 2020. A recovery is evident with an increase to 5,861 million USD in 2021 and further growth to 8,687 million USD in 2022. However, this upward trend reverses sharply in 2023, with a substantial loss of 5,833 million USD, before moving back to a marginal positive net income of 778 million USD in 2024.

Total Micron Shareholders’ Equity

The shareholders’ equity shows a generally rising trend from 35,881 million USD in 2019 to a high of 49,907 million USD in 2022. This is followed by a decline to 44,120 million USD in 2023, then a slight increase to 45,131 million USD in 2024. This suggests that despite the fluctuations in earnings, the company’s overall equity base has strengthened over the examined years, with some contraction subsequent to the 2022 peak.

Reported Return on Equity (ROE)

The reported ROE mirrors the net income's volatility. The ratio begins at a strong 17.59% in 2019, declines sharply to 6.89% in 2020, and recovers to 13.34% in 2021 and nearly regains the prior peak at 17.41% in 2022. In 2023, ROE turns negative, reaching -13.22%, reflecting the significant net loss in that year. A modest recovery to 1.72% is observed in 2024, indicating ongoing challenges to profitability.

Adjusted Net Income (Loss)

Adjusted net income follows a trend broadly similar to reported net income but displays slightly higher figures in each year except for 2024 where it ends at 991 million USD compared to 778 million USD reported. This implies some adjustments to earnings that impact the reported figures, particularly noticeable where losses occur, as in 2023 with an adjusted loss of 5,592 million USD.

Adjusted Total Equity

The adjusted equity values closely align with the reported total shareholders’ equity but show marginally lower figures for most years, indicating minor adjustments to equity components. The trajectory remains upward from 36,035 million USD in 2019 to a peak at 49,218 million USD in 2022, followed by a decline to 43,481 million USD in 2023, and a slight recovery to 44,670 million USD in 2024.

Adjusted Return on Equity (Adjusted ROE)

Adjusted ROE corroborates the pattern seen in reported ROE and adjusted net income. It decreases from 18.57% in 2019 to 7.53% in 2020, rises to around 17% in 2022, suffers a pronounced drop into negative territory at -12.86% in 2023, and improves to 2.22% in 2024. This pattern emphasizes the impact of earnings adjustments on profitability metrics but maintains the overall trend of volatility.

Overall Insights

The data reveal a cyclical pattern of strong profitability in 2019 and 2022, interrupted by significant downturns in 2020 and an especially severe loss in 2023. Shareholders’ equity has generally trended upward, reflecting either retained earnings or capital inflows, except for retrenchments following the 2022 peak. Both reported and adjusted returns on equity fluctuate in line with earnings, highlighting sensitivity to operational performance. The marked decline in 2023 suggests a challenging business environment or extraordinary factors impacting financial results, with early signs of recovery appearing in 2024.

The financial data reveals notable fluctuations in profitability and asset growth over the examined periods.

Net Income Trends

Net income attributable to the company demonstrates volatility with an initial amount of $6,313 million in 2019, declining sharply to $2,687 million in 2020. It then recovers substantially to $5,861 million in 2021 and peaks at $8,687 million in 2022. However, 2023 shows a significant loss of $5,833 million, followed by a modest recovery to a profit of $778 million in 2024.

Total Assets Evolution

Total assets exhibit consistent growth from $48,887 million in 2019 to $66,283 million in 2022. A slight decrease to $64,254 million occurs in 2023, before rising again to $69,416 million in 2024. The adjusted total assets follow a similar trajectory, reinforcing this pattern of asset expansion over time with minor contraction in 2023.

Return on Assets (ROA) Analysis

The reported ROA begins at a strong 12.91% in 2019, decreases to a low of 5.01% in 2020, and then steadily increases to 13.11% in 2022. It plummets to a negative -9.08% in 2023, reflecting the loss during this period, before rebounding slightly to 1.12% in 2024. Adjusted ROA follows a consistent pattern, starting at 13.77% in 2019, declining to 5.44% in 2020, rising again to 12.84% in 2022, then dropping to -8.81% in 2023 and recovering to 1.44% in 2024.

Insights

The company experiences a growth phase from 2019 through 2022, marked by increasing assets and improving profitability metrics. The year 2023 represents a challenging period with significant losses and negative returns on assets, despite only a slight decrease in total assets. The recovery in 2024, though positive, remains moderate compared to earlier peak performance. The alignment of reported and adjusted figures suggests that non-recurring items or accounting adjustments have limited impact on the overall trends.