Micron Technology Inc. (NASDAQ:MU)

Total Asset Turnover

The total asset turnover ratio experienced a general decline from 0.4 in 2020 to a low point of 0.24 in 2023, indicating reduced efficiency in asset utilization during this period. However, there is a notable recovery in 2024 and 2025, with the ratio rising back to 0.36 and 0.45 respectively, signaling an improving ability to generate revenue from assets.

Debt to Equity and Debt to Capital Ratios

Both reported and adjusted debt to equity ratios remained relatively stable and low from 2020 through 2022, hovering around 0.14 to 0.17. A marked increase occurs in 2023 and 2024, rising to approximately 0.3, before slightly decreasing to 0.27 in 2025. Similarly, debt to capital ratios followed this pattern, increasing noticeably in 2023 and 2024 to about 0.23-0.24, then easing to around 0.21-0.22 in 2025. These shifts suggest an increased reliance on debt financing during the middle years, followed by modest deleveraging in the latest period.

Financial Leverage

Financial leverage ratios show a gradual upward trend, increasing from about 1.34 in 2020-2021 to 1.54 in 2024, staying almost constant into 2025. This rise is consistent with the increased debt levels observed and reflects greater use of borrowed funds relative to equity.

Net Profit Margin

The net profit margin exhibits significant volatility. From moderate positive margins near 12.5% in 2020, a strong upward trend peaks around 27-28% in 2022. However, there is a sharp decline into negative territory in 2023 (-35% to -37%), signaling a substantial loss during that year. Recovery begins in 2024 with marginal positive margins near 3-4%, and a strong rebound to approximately 23% in 2025. This fluctuation indicates a period of operational or market challenges in 2023, followed by effective recovery measures.

Return on Equity (ROE)

ROE trends mirror the pattern observed in net profit margin. Starting from a modest 6.9% in 2020, it improves steadily to above 17% by 2022. A negative return occurs in 2023 (-13%), indicating losses that eroded shareholder value. Subsequently, there is a gradual recovery through 2024 and 2025, with ROE reaching approximately 16%, suggesting restoration of profitability and efficiency in equity use.

Return on Assets (ROA)

ROA also follows a similar trajectory, increasing from around 5% in 2020 to over 13% in 2022, before dropping sharply to negative values around -9% in 2023. Recovery is observed in the following years, rising to just over 10% by 2025. This indicates that the company’s asset profitability was adversely affected in 2023 but regained strength thereafter.

Overall Insights

The financial data reveals a period of growing efficiency and profitability up to 2022, followed by a significant downturn in 2023 characterized by reduced asset utilization, increased leverage, and negative profit metrics. The downturn appears to be temporary as most key indicators show meaningful recovery by 2025. The increase in debt-related measures during the downturn suggests financing challenges or strategic borrowing during the difficult period. The subsequent improvement across profitability and efficiency ratios indicates successful corrective actions and restored operational performance.

The financial data reveals fluctuating trends in key performance indicators over the examined periods. Revenue exhibited notable variability, initially increasing from 21,435 million US dollars to a peak of 30,758 million US dollars by the third period. However, there was a pronounced decline to 15,540 million US dollars in the fourth period, followed by a recovery and significant growth reaching 37,378 million US dollars in the latest period.

Total assets demonstrated a steady upward trajectory overall, rising from 53,678 million US dollars to 82,798 million US dollars. Despite a slight reduction from the third to the fourth period, the asset base generally expanded, indicating growth in resource availability or investment activities.

The reported total asset turnover ratio, which measures the efficiency of asset use in generating revenue, peaked in the second period at 0.47 and maintained a similar level in the third period. A substantial drop to 0.24 occurred in the fourth period, aligning with the revenue decline. This ratio partially recovered in the subsequent periods to 0.36 and then 0.45, reflecting improvements in asset utilization efficiency.

Adjusted total assets followed a pattern closely mirroring total assets, increasing consistently with a minor dip in the fourth period. The adjusted total asset turnover ratio exhibits trends parallel to the reported ratio, underscoring consistent efficiency dynamics irrespective of asset adjustments.

Overall, the data suggests periods of volatility interspersed with growth phases. The sharp revenue decline and asset turnover reduction in the fourth period indicate a temporary operational or market challenge. The recovery in the following periods signals resilience and improved asset use, contributing to strengthened financial performance towards the end of the timeframe.

Key observations:

- Revenue growth was initially strong but experienced a significant dip before rebounding robustly.

- Total assets grew steadily with minor fluctuations, indicating increasing capital deployment.

- Asset turnover ratios declined sharply during the revenue contraction phase but recovered later, suggesting improving operational efficiency.

- Adjusted asset measures and their turnover ratios align closely with reported figures, reinforcing the observed trends.

Total Debt

The total debt demonstrates a generally increasing trend over the analyzed years, rising from $6.6 billion in 2020 to $14.6 billion in 2025. There is a particularly notable increase between 2022 and 2023, where total debt nearly doubles, moving from approximately $6.9 billion to $13.3 billion. The growth rate appears to slow slightly after 2023 but continues upward through 2025.

Shareholders' Equity

Shareholders’ equity follows a generally upward trajectory from 2020 to 2025, beginning at roughly $39 billion and increasing to nearly $54.2 billion by 2025. There is a dip observed in 2023, where equity decreases from $49.9 billion in 2022 to $44.1 billion, before resuming its upward momentum in subsequent years. This pattern suggests potential volatility or significant events impacting equity in 2023.

Reported Debt to Equity Ratio

The reported debt to equity ratio reflects a decline from 0.17 in 2020 to 0.14 in 2022, indicating a strengthening equity position relative to debt. However, this ratio sharply increases to 0.30 in 2023 and remains elevated around 0.27 to 0.30 through 2025. This shift corresponds with the substantial rise in total debt seen in the same timeframe and the temporary decrease in equity, pointing to a higher leverage position or increased financial risk during these years.

Adjusted Total Debt

Adjusted total debt exhibits a pattern similar to total debt, increasing steadily from about $7.2 billion in 2020 to $15.4 billion in 2025. The increase is consistent, with an especially steep rise between 2022 and 2023, comparable to the trend observed in reported total debt.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity generally mirrors reported equity trends, increasing from approximately $38.3 billion in 2020 to $53.6 billion in 2025. A decline occurs in 2023, dropping from $49.2 billion in 2022 to $43.5 billion, but equity recovers and grows again afterward.

Adjusted Debt to Equity Ratio

The adjusted debt to equity ratio decreases from 0.19 in 2020 to 0.15 in 2022, then experiences a notable increase to 0.32 in 2023, maintaining elevated levels of approximately 0.29 to 0.32 through 2025. This trend aligns with the changes in adjusted debt and equity, reflecting increased leverage during the 2023 period and thereafter.

Overall Insights

Over the six-year period, there is a clear pattern of increasing debt levels alongside rising equity, although the latter shows more volatility with a marked dip in 2023. The leverage ratios confirm a period of reduced risk up to 2022, followed by a significant increase in leverage starting in 2023. The simultaneous rise in debt and drop in equity in 2023 suggest strategic financial decisions or external factors influencing balance sheet structure. Post-2023, both reported and adjusted figures indicate a gradual improvement in equity and a slight reduction in leverage ratios, albeit still at higher levels than prior to 2023.

Total Debt

The total debt exhibited a relatively stable trend from 2020 to 2022, ranging between approximately 6,600 and 6,900 million US dollars. Starting in 2023, there was a significant increase, with debt nearly doubling to over 13,300 million US dollars and continuing to rise through 2025, reaching approximately 14,577 million US dollars.

Total Capital

Total capital increased consistently over the entire period. From about 45,600 million US dollars in 2020, it rose steadily to roughly 56,800 million in 2022. The growth slowed between 2022 and 2024 but then accelerated markedly by 2025, ending near 68,700 million US dollars.

Reported Debt to Capital Ratio

The reported debt to capital ratio demonstrated a gradual decline from 0.15 in 2020 to 0.12 in 2022, indicating a lower relative debt level in the capital structure. However, in 2023, this ratio approximately doubled to 0.23, reflecting the sharp rise in debt. It remained relatively stable at this higher level through 2024 and then marginally decreased to 0.21 in 2025.

Adjusted Total Debt

The adjusted total debt metric mirrored the pattern observed in total debt. Starting at 7,230 million US dollars in 2020, it showed minimal growth up to 2022, then surged significantly in 2023 to nearly 14,000 million US dollars, with further increases through 2025, reaching around 15,352 million US dollars.

Adjusted Total Capital

Adjusted total capital closely paralleled reported total capital with steady growth across the years, rising from approximately 45,500 million US dollars in 2020 to nearly 56,800 million in 2022, followed by moderate increases until 2024 and a strong upward movement to approximately 68,953 million US dollars in 2025.

Adjusted Debt to Capital Ratio

This adjusted ratio followed a downward trend from 0.16 in 2020 to 0.13 in 2022. Like the reported ratio, it increased sharply to 0.24 in 2023 and 2024, indicating a higher debt proportion, before declining slightly to 0.22 in 2025.

Summary Insights

The data reflect stable financial leverage over the early years, with both reported and adjusted debt to capital ratios decreasing modestly until 2022, suggesting strengthening capital positions relative to debt. From 2023 onwards, the company significantly increased its debt levels, nearly doubling them, which led to notable increases in debt to capital ratios. Despite this higher leverage, total and adjusted capital continued to grow, indicating that the debt increase coincided with capital expansion rather than capital contraction. The slight decrease in leverage ratios in the final year suggests initial steps toward deleveraging or enhanced capital base growth in response to elevated debt levels.

Total Assets

Total assets exhibited a consistent upward trend over the observed periods, increasing from 53,678 million USD in 2020 to 82,798 million USD in 2025. Notably, there was a slight decline between 2022 and 2023 before the asset base rebounded sharply in subsequent years.

Shareholders’ Equity

Shareholders’ equity also grew steadily, rising from 38,996 million USD in 2020 to 54,165 million USD in 2025. However, it experienced a decrease between 2022 and 2023, aligning with the temporary dip seen in total assets. The equity resumed growth thereafter, although at a moderate pace between 2023 and 2024 before accelerating again in the final year.

Reported Financial Leverage

The reported financial leverage ratio displayed a declining trend initially, moving from 1.38 in 2020 down to 1.33 in 2022, indicating a reduction in leverage or increased equity relative to debt. From 2023 onwards, the ratio rose sharply to 1.54 in 2024, before slightly decreasing to 1.53 in 2025. This reflects increased use of debt financing or relatively slower equity growth during the latter periods.

Adjusted Total Assets

The adjusted total assets followed a similar pattern to the reported total assets, increasing from 52,971 million USD in 2020 to 82,182 million USD in 2025. The slight dip in 2023 is mirrored here as well, confirming consistency in asset adjustment methodologies.

Adjusted Shareholders’ Equity

Adjusted shareholders’ equity rose from 38,298 million USD in 2020 to 53,601 million USD in 2025. It also exhibited a decline between 2022 and 2023 before recovering in subsequent years. The adjusted figures closely track the reported equity, suggesting alignment in accounting treatments with minor variations.

Adjusted Financial Leverage

Adjusted financial leverage maintained the same trajectory as the reported leverage ratio, beginning at 1.38 in 2020, declining to 1.33 in 2022, and then increasing sharply to 1.54 in 2024 before a slight decline to 1.53 in 2025. This consistency indicates that adjustments did not materially alter the leverage assessment.

Overall, the company demonstrated asset growth over the period with a brief contraction around 2023. Equity growth mirrored this trend but lagged slightly, particularly during the contraction year. The financial leverage ratios decreased initially, signifying strengthened equity positions relative to debt, but reversed course in later years, suggesting increased reliance on debt financing or a slowdown in equity growth relative to assets.

The financial performance demonstrates notable volatility across the analyzed periods, with distinct fluctuations in revenue, net income, and profit margins.

Revenue Trends

Revenue showed a generally upward trajectory from 21.4 billion USD in the first period to 30.8 billion USD in the third period, indicating growth. However, there was a sharp decline to 15.5 billion USD in the fourth period, representing a significant contraction. Subsequently, revenue rebounded strongly over the next two periods, reaching 37.4 billion USD by the final period, marking the highest revenue level observed.

Net Income (Loss) Attributable

Net income experienced substantial fluctuations. Initially, there was consistent growth from approximately 2.7 billion USD to 8.7 billion USD over the first three periods. This positive trend was followed by a dramatic reversal in the fourth period, with a substantial loss of 5.8 billion USD. Recovery occurred in the subsequent two periods, with net income returning to positive values of 778 million USD and surging to 8.5 billion USD, nearly matching the previous peak.

Reported Net Profit Margin

The profit margin mirrored net income trends closely, peaking at 28.2% in the third period before plummeting to a negative margin of -37.5% in the fourth period, signaling a period of substantial operational or market challenges. The margin then recovered to a modest positive 3.1% and further improved to 22.8% in the final period, reflecting a restoration of profitability and operational efficiency.

Adjusted Net Income and Profit Margin

Adjusted figures reveal a similar pattern to reported earnings but with slight variations in magnitude. Adjusted net income rose from 2.9 billion USD to 8.4 billion USD over the first three periods, indicating strong underlying operational performance before a significant loss of 5.6 billion USD occurred in the fourth period. Recovery was evident in the last two periods with adjusted income reaching 8.8 billion USD. Adjusted profit margins followed suit, peaking near 27.4% before a steep decline to -36.0%, and subsequently recovering to 23.6%, showing improved profitability excluding extraordinary items.

Overall, the data reveals pronounced cyclical characteristics with a significant downturn occurring in the fourth period, followed by a robust recovery phase. The company exhibited resilience by returning to profitability and exceeding previous revenue and profit margin highs by the final period. This pattern may reflect external market conditions or internal adjustments impacting financial performance temporarily before stabilization and growth.

The financial performance over the observed periods exhibits significant fluctuations in profitability and equity levels, impacting key return metrics.

Net Income (Loss) Trends

Net income increased steadily from 2,687 million US$ in 2020 to a peak of 8,687 million US$ in 2022, reflecting strong profitability growth during this period. However, a sharp reversal occurred in 2023, with net loss recorded at 5,833 million US$, before recovering to positive income of 778 million US$ in 2024 and further strengthening to 8,539 million US$ in 2025.

Shareholders’ Equity Movement

Shareholders’ equity showed a general upward trend across the periods, rising from 38,996 million US$ in 2020 to 54,165 million US$ in 2025. Minor declines were observed in 2023 and 2024, correlating with the loss reported in 2023, but the overall trajectory remains positive, indicating capital growth.

Reported Return on Equity (ROE)

Reported ROE mirrored the fluctuations in net income, progressing from 6.89% in 2020 to a high of 17.41% in 2022. A sharp downturn followed in 2023 with a negative ROE of -13.22%, coinciding with the net loss. The metric rebounded to 1.72% in 2024 and significantly improved to 15.76% by 2025, demonstrating recovery in profitability relative to equity.

Adjusted Net Income (Loss) and Adjusted Shareholders’ Equity

Adjusted figures follow a similar pattern as their reported counterparts, with adjusted net income increasing through 2022, declining sharply in 2023, and recovering thereafter. Adjusted shareholders’ equity also shows a steady increase overall, with slight decreases in 2023 and 2024 before a strong rise in 2025. These adjustments indicate consistent underlying trends even after accounting for one-time or non-recurring items.

Adjusted Return on Equity (ROE)

Adjusted ROE percentages align closely with reported ROE, demonstrating steady growth until 2022, a drop to negative territory in 2023, modest recovery in 2024, and significant improvement in 2025. This consistency suggests that the company's profitability relative to adjusted equity captures the operational challenges and recovery phases accurately.

In summary, the data reflects a company experiencing considerable volatility in earnings around the 2023 fiscal year, followed by a notable recovery period. The steady growth in shareholders’ equity amidst this fluctuation indicates resilient capital foundation. Return on equity ratios highlight the sensitivity of profitability to the volatile net income, with both reported and adjusted measures confirming these trends. Continuous monitoring of income stability will be crucial to sustaining positive returns on equity in the future.

Net Income (Loss) attributable to the company

The net income exhibited notable fluctuations over the analyzed periods. Starting at 2,687 million USD, it reached a peak of 8,687 million USD in the third period before sharply declining to a loss of 5,833 million USD in the fourth period. Following this loss, net income recovered modestly to 778 million USD, then increased significantly to 8,539 million USD in the latest period.

Total Assets

Total assets demonstrated a generally upward trend, increasing from 53,678 million USD to 82,798 million USD by the final period. There was steady growth with a minor decline from the third to the fourth period, after which assets resumed growth sharply.

Reported Return on Assets (ROA)

The reported ROA followed a trajectory similar to net income, increasing from 5.01% to a high of 13.11% before plunging to -9.08%. It then recovered slightly to 1.12% and subsequently rose to 10.31%. This pattern reflects the volatility in profitability relative to asset base during the periods.

Adjusted Net Income (Loss)

Adjusted net income closely mirrors the pattern of reported net income, starting at 2,882 million USD, peaking at 8,419 million USD, then moving into a loss of 5,592 million USD, before recovering to 991 million USD and reaching 8,805 million USD. The adjustments do not significantly alter the trend but provide a slightly less volatile view.

Adjusted Total Assets

Adjusted total assets increased consistently from 52,971 million USD to 82,182 million USD, aligning closely with reported total assets and reinforcing the overall growth in asset base over time despite short-term variances.

Adjusted Return on Assets (ROA)

Adjusted ROA showed comparable movements to the reported ROA, starting at 5.44%, rising to 12.84%, dropping to -8.81%, then moving up to 1.44%, and later increasing to 10.71%. This suggests that, after adjustments, the company's efficiency in generating returns from assets experienced similar fluctuations.

Summary of Trends and Insights

The company experienced significant volatility in profitability, with peaks in net income and ROA in early periods followed by a steep decline into losses before recovering sharply. Despite this profit volatility, the total asset base expanded steadily, indicating continued investment and growth capacity. The aligned movements in both reported and adjusted figures suggest the trends are robust and not driven purely by accounting adjustments. The dramatic loss in the middle period warrants attention, but the strong recovery in the latest period reflects resilience and improved operational performance relative to assets.