Micron Technology Inc. (NASDAQ:MU)

The data reveals notable fluctuations and trends in financial performance and asset utilization over the six-year period.

Revenue

Revenue exhibited variability, with a decline from 12,451 million US dollars in 2019 to 10,381 million US dollars in 2020. It then rose again to 12,155 million US dollars in 2021, followed by a significant increase to a peak of 16,026 million US dollars in 2022. Subsequently, revenue dropped sharply to 7,805 million US dollars in 2023 before recovering to 13,168 million US dollars in 2024. This pattern suggests periods of volatility with sharp declines and recoveries.

Long-lived Assets

The value of long-lived assets remained relatively stable from 2019 to 2023, fluctuating within a narrow range from 5,048 million US dollars to 5,434 million US dollars. In 2024, there was a marked increase to 6,508 million US dollars, indicating a possible recent investment or capital expenditure enhancing asset base.

Area Asset Turnover

The area asset turnover ratio, reflecting efficiency in the use of assets to generate revenue, generally mirrored the revenue changes but with pronounced volatility. The ratio declined from 2.47 in 2019 to 1.91 in 2020, improved to 2.34 in 2021, and further increased sharply to 3.11 in 2022, representing peak asset productivity. However, it fell substantially to 1.50 in 2023 before partially recovering to 2.02 in 2024. The fluctuations indicate varying effectiveness in utilizing assets to generate sales across the years, potentially linked with the revenue performance and asset base changes.

Overall, the trends show cyclical revenue performance with pronounced peaks and troughs, steady asset levels for most of the period except for a recent increase, and corresponding changes in asset turnover that reflect shifting operational efficiency in the geographic area analyzed.

Revenue Trends

Revenue in the Taiwan geographic area displays significant fluctuations over the observed periods. Starting at 2,703 million US dollars in 2019, revenue increased substantially to a peak of 6,606 million US dollars in 2021, followed by a decline to 2,697 million in 2023. The most recent data in 2024 shows a partial recovery to 4,708 million US dollars. This pattern suggests a cycle of rapid growth, contraction, and subsequent recovery within the six-year period.

Long-lived Assets Trends

The value of long-lived assets in Taiwan exhibits a consistent upward trajectory from 9,397 million US dollars in 2019 to 14,156 million US dollars in 2024. Despite minor fluctuations, particularly a slight decline between 2022 and 2023, the overall increase indicates ongoing substantial investment in physical assets, suggesting a long-term commitment to the region's operations.

Area Asset Turnover Trends

The area asset turnover ratio, which measures revenue generated per unit of long-lived assets, shows notable variability. It rose sharply from 0.29 in 2019 to a high of 0.58 in 2021, indicating improved efficiency or higher utilization of assets during this period. Subsequently, the ratio declined to 0.21 in 2023, reflecting decreased asset utilization or lower revenue relative to assets. By 2024, the turnover ratio had improved somewhat to 0.33, suggesting a partial restoration of efficiency but still below the peak observed in 2021.

Comprehensive Insights

The data reflects a period of dynamic changes in the Taiwan geographic segment. The peak in revenue and asset turnover in 2021 aligns with an optimal phase of asset utilization and market performance. Following 2021, declines in revenue and turnover ratio signify challenges in maintaining that level of performance despite continued investment in physical assets. The rebound in revenue and improvement in turnover ratio in 2024 imply a recovery phase, though the asset base remains significantly high, possibly indicating preparation for future growth or capacity expansion. The divergence between increasing asset levels and fluctuating revenue and turnover ratios may warrant further investigation into operational efficiency and market conditions in the Taiwan area.

Revenue

The revenue exhibits notable fluctuations over the observed periods. Initially, it decreases from 5209 million USD in 2019 to 4129 million USD in 2020. A recovery is observed in 2021, with an increase to 5038 million USD, followed by a slight decline to 4976 million USD in 2022. A significant decrease occurs in 2023, reducing revenue to 2521 million USD, before rebounding to 4116 million USD in 2024. Overall, the revenue shows volatility with periods of both decline and recovery.

Long-lived assets

The value of long-lived assets demonstrates moderate variability throughout the years. Starting from 370 million USD in 2019, it rises substantially to 478 million USD in 2020. After a minor decline to 436 million USD in 2021, it remains relatively stable at approximately 440 million USD in 2022. A decrease to 395 million USD occurs in 2023, followed by an increase to 486 million USD in 2024, reaching the highest level in the series. This pattern indicates periodic investment or valuation adjustments in long-lived assets.

Area asset turnover

The area asset turnover ratio, which measures the efficiency of asset use in generating revenue, shows a declining trend with some recovery. The ratio starts at a high of 14.08 in 2019 but decreases sharply to 8.64 in 2020. It improves to 11.56 in 2021 and slightly declines to 11.31 in 2022, indicating fluctuating asset utilization efficiency. A marked drop to 6.38 occurs in 2023, followed by a partial recovery to 8.47 in 2024. These changes suggest challenges in asset productivity, particularly during 2023, with some improvement afterward.

The analysis of the Japan geographic area's financial data over the six-year period reveals notable fluctuations and trends in revenue, long-lived assets, and asset efficiency.

Revenue

Revenue displayed an increasing trajectory from 2019 to 2022, rising from 958 million US dollars in 2019 to a peak of 1,696 million US dollars in 2022. However, this was followed by a sharp decline in the subsequent years, with revenue dropping to 987 million US dollars in 2023 and further down to 840 million US dollars in 2024.

Long-lived assets

Long-lived assets exhibited a consistent upward trend from 2019 to 2021, growing from 5,202 million to 7,222 million US dollars. After a slight decrease in 2022 to 7,113 million, assets increased again in 2023 to 7,323 million before declining to 7,085 million in 2024. Overall, the asset base remained relatively stable in the higher range after 2020, showing some moderation in recent years.

Area asset turnover

The asset turnover ratio, which measures revenue generated per unit of asset, gradually improved from 0.18 in 2019 to 0.24 in 2022, reflecting better utilization of assets during this period. However, a significant decrease occurred afterwards, with the ratio falling to 0.13 in 2023 and 0.12 in 2024, indicating reduced efficiency in generating revenue from the asset base in the latest years.

In summary, the data reveals initial growth in revenue coupled with increasing investment in long-lived assets up to 2022, accompanied by improved asset turnover. The period after 2022 shows a clear decline in revenue and asset turnover, despite continued sizeable long-lived assets, suggesting potential challenges in asset utilization and market conditions in the Japan region.

The financial data concerning the "Other" geographic area reveals several noteworthy trends over the analyzed periods.

Revenue

Revenue exhibits fluctuations throughout the years. Beginning at $2,085 million in 2019, it declined to $1,881 million in 2020, before rising again to $2,254 million in 2021. Subsequently, it decreased to $1,875 million in 2022 and further dropped to its lowest point in 2023 at $1,530 million. However, the latest figure in 2024 shows a significant rebound to $2,279 million, marking the highest in the six-year span.

Long-lived assets

There is a pronounced upward trend in long-lived assets from 2019 through 2022. Starting at $8,223 million in 2019, assets increased steadily to $8,709 million in 2020, $10,343 million in 2021, and peaked at $13,376 million in 2022. Following this peak, a slight decline was observed, with assets measuring $12,754 million in 2023 and $12,159 million in 2024, indicating a possible consolidation or asset revaluation phase after substantial growth.

Area asset turnover

The asset turnover ratio, which reflects how efficiently assets generate revenue, decreased notably over time. Starting at 0.25 in 2019, it dropped slightly to 0.22 for both 2020 and 2021, then plummeted to 0.14 in 2022 and further to 0.12 in 2023. The most recent data from 2024 shows an improvement to 0.19 but remains below the initial levels. This trend suggests that while long-lived assets grew substantially, revenue generation efficiency based on those assets declined, with a partial recovery in the latest year.

In summary, the data indicates that although long-lived assets in this geographic area have been amassed prominently over the past years, the ability to generate revenue relative to these assets experienced a downturn, pointing to potential underutilization or delayed returns on investment during the period. The recent improvement in both revenue and asset turnover ratio in 2024 suggests early signs of enhanced operational efficiency or market conditions favoring this area.