Micron Technology Inc. (NASDAQ:MU)

Net Fixed Asset Turnover

The net fixed asset turnover ratio shows a rising trend from September 2020 through September 2022, peaking near 0.88. This suggests increasing efficiency in generating revenue from fixed assets during this period. However, from December 2022 onward, there is a noticeable decline, bottoming out around 0.41 in September 2023. Following this trough, the ratio begins to recover steadily, reaching approximately 0.80 by August 2025, indicating a gradual improvement back toward previous levels.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

The pattern closely mirrors that of net fixed asset turnover alone, confirming consistency whether or not operating lease assets are included. The ratio increases from late 2020 until late 2022, then declines markedly through mid-2023 before starting an upward trajectory again through mid-2025. This parallel movement indicates that operating leases do not substantially alter the underlying asset utilization trend.

Total Asset Turnover

Total asset turnover exhibits a gradual increase from about 0.40 in late 2020 to a high near 0.50 by late 2021, reflecting improved overall asset efficiency. Subsequently, there is a steady decline through 2023, reaching a low around 0.24 in September 2023, which is the lowest point among the ratios analyzed. From late 2023 onwards, a consistent recovery is observed, with the ratio rising back to approximately 0.45 by mid-2025. This suggests cyclical fluctuations in asset utilization with a strong rebound phase.

Equity Turnover

Equity turnover follows a similar cyclical pattern, increasing from approximately 0.55 in late 2020 to a peak of 0.66 in late 2021, indicating heightened revenue generation relative to equity at that time. The ratio then declines sharply through 2023, bottoming near 0.35 in September 2023. Thereafter, the ratio moves upward steadily, surpassing 0.69 by mid-2025, signaling improved efficiency in using equity capital over the latter part of the timeline.

Overall Observations

Across all turnover metrics analyzed, the data reveal an initial phase of improving efficiency from late 2020 through late 2021 or early 2022, followed by a marked decline through mid-2023. This downturn period likely reflects adverse operational or market conditions affecting asset and equity utilization. Beginning in late 2023, all ratios demonstrate a recovery trend that continues through mid-2025, suggesting a rebound in operational performance and capital efficiency. The cyclical nature of these ratios highlights a period of volatility, with recovery gaining momentum towards the end of the analyzed timeframe.

The financial data reveals several noteworthy trends in key performance metrics over the examined periods.

Revenue

The revenue shows an overall upward trajectory with fluctuations. Starting at approximately $5.1 billion in late 2019, it experiences some dips early in 2020, followed by a generally strong increase reaching peaks above $9 billion in 2024. Notably, after a considerable drop in late 2022 to around $4 billion, revenue begins a steady recovery throughout 2023 and into 2024, culminating in over $11 billion by mid-2025. This pattern suggests resilience and recovery after a period of contraction.

Property, Plant, and Equipment (PP&E)

The value of property, plant, and equipment consistently increases over the full period. Starting near $29.4 billion at the end of 2019, the PP&E base grows incrementally, reaching around $46.6 billion by mid-2025. This trend indicates ongoing capital investment and asset accumulation, supporting potential capacity expansion or modernization efforts despite some periods where asset values plateau or slightly decline.

Net Fixed Asset Turnover

The net fixed asset turnover ratio, available from mid-2020, exhibits notable variation. Initially, this ratio increases from approximately 0.69 to a peak around 0.88 in mid-2022, indicating improving efficiency in using fixed assets to generate revenue. However, thereafter there is a downward trend, with the ratio declining to a low near 0.41 by late 2023, corresponding with a dip in revenue. A recovery phase follows, with the ratio climbing back up to roughly 0.80 by mid-2025. This pattern reflects fluctuations in operational efficiency, potentially impacted by the timing of asset investments relative to revenue generation cycles.

In summary, the data portrays a company with growing asset investment and a resilient revenue pattern marked by cyclicality. Efficiency in utilizing fixed assets to drive revenue initially improves but suffers a temporary setback before recovering, aligning with the observed revenue trends. This indicates that while capital expenditures have steadily increased, realizing corresponding revenue growth may experience lag periods likely influenced by market conditions or internal operational factors.

Revenue Trend

The revenue demonstrates an overall upward trend over the observed periods. Starting from approximately 5,144 million USD, it experienced fluctuations but generally increased, peaking at 11,315 million USD in the latest reported quarter. Notably, revenue saw a decline in certain quarters such as in late 2022 and early 2023, with values dropping to around 3,693 to 4,085 million USD, followed by a recovery and sharp increment toward the later periods. This pattern suggests some cyclicality or external factors impacting demand or sales performance temporarily, but an overall expansion in revenue scale across the quarters.

Property, Plant, and Equipment (PP&E)

The value of property, plant, and equipment, including operating leases and right-of-use assets, showed a steady increase over the entire period. Beginning from roughly 29,960 million USD, the asset base grew consistently, reaching approximately 47,326 million USD by the end of the timeframe. This sustained growth implies continuous investments in fixed assets, likely reflecting capacity expansion, modernization, or strategic asset acquisition to support business growth.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures efficiency of asset use in generating revenue, exhibited a dynamic trend. Initially reporting around 0.68 to 0.78, it peaked near 0.87 around 2022 but then experienced a notable decline to lows of approximately 0.40 to 0.46 during early-mid 2023. Following this dip, the ratio recovered gradually, improving to around 0.79 by the end of the observation period. This pattern indicates a phase of decreasing efficiency in asset utilization during the mid-term, possibly due to asset additions outpacing revenue growth or temporary operational challenges, followed by a resurgence in leveraging assets more effectively in later periods.

Overall Insights

The financial indicators collectively indicate that while the company invested heavily in its fixed asset base, revenue growth generally followed with considerable strength, albeit with some short-term volatility. The fluctuation in asset turnover highlights periods of adjustment where new assets may not have immediately translated to proportional revenue increases, but ensuing improvements suggest successful integration or enhanced operational performance over time. The growing revenue alongside increasing investment in PP&E underscores an expansionary business strategy focused on scaling operations and market presence.

The financial data demonstrates several key trends related to revenue, total assets, and total asset turnover over multiple quarters.

Revenue Trends

The revenue exhibits a general upward trajectory with some fluctuations. Initially, from late 2019 through mid-2021, revenue increased steadily from approximately $5.1 billion to over $7.4 billion. Thereafter, a sharp rise occurred between mid-2021 and early 2022, peaking around $8.6 billion. A notable decline followed at the end of 2022, where revenue dropped significantly to roughly $4.1 billion and remained relatively subdued through mid-2023. Subsequently, revenue rebounded, climbing consistently from about $4 billion in mid-2023 to surpass $11.3 billion by late 2025, indicating strong growth expectations for the future periods.

Total Assets

Total assets show steady growth over the entire period under review. Starting near $49.6 billion in late 2019, assets increased gradually, reaching approximately $67.9 billion by the end of 2022. Post this point, total assets experienced a slight dip and plateau in early to mid-2023, lowering to around $64.3 billion. However, total assets resumed an upward trend thereafter, exceeding $82.7 billion by late 2025. This steady accumulation of assets suggests ongoing investment and expansion of the company’s asset base.

Total Asset Turnover

The total asset turnover ratio, which measures efficiency in using assets to generate sales, shows variability with discernible trends. From mid-2020, it gradually increased from 0.40 to a peak near 0.50 by late 2021, indicating improved asset utilization. However, from late 2021 through mid-2023, the turnover ratio declined significantly to a low of approximately 0.24, suggesting reduced efficiency in asset use during this period. After mid-2023, the ratio began recovering, rising steadily to about 0.45 by late 2025, reflecting a renewed improvement in generating revenue relative to assets.

In summary, the company’s revenue and total assets generally expanded over the period, despite some intermittent volatility and temporary declines. The efficiency of asset utilization, as indicated by total asset turnover, experienced a significant dip in the 2022 to mid-2023 timeframe but showed substantial recovery thereafter. These patterns could reflect cyclical market conditions, investment cycles, or operational adjustments impacting revenue generation and asset use efficiency.

The financial data exhibits several noteworthy trends over the analyzed periods.

Revenue

The revenue demonstrates a general upward trajectory from November 2019 through August 2025, with fluctuations in certain intervals. Initial values started at approximately 5,144 million US dollars and experienced significant growth, peaking around November 2024 at 8,709 million. There were intermittent declines particularly noticeable between December 2021 and March 2023, where revenue dropped from 7,687 million to 3,693 million, indicative of potential market or operational challenges during this timeframe. However, recovery is evident afterward, with revenue rebounding to over 11,000 million US dollars by August 2025, marking a strong performance in the most recent periods.

Shareholders’ Equity

Shareholders' equity reflects a steady increase from 36,500 million US dollars in November 2019 to 54,165 million by August 2025. Despite minor decreases between September 2022 and September 2023, the overall trend is positive, pointing to sustained capitalization growth. This accumulation suggests ongoing retained earnings, successful capital management, or effective equity financing strategies enhancing the company's financial base.

Equity Turnover Ratio

The equity turnover ratio, indicating efficiency in generating revenue from shareholders’ equity, shows an initial upward movement from 0.55 to 0.66 between May 2020 and September 2021, suggesting improved asset utilization during this phase. Subsequently, a decline is observed, reaching a low of 0.35 in November 2023, corresponding with the periods of lower revenue and equity figures. Post-November 2023, the ratio trends upwards again, attaining 0.69 by August 2025, aligned with the resurgence in revenue. This movement reflects a correlation between operational efficiency and revenue generation capacity relative to equity.

Overall, the patterns indicate a company that has faced some volatility in revenue and equity efficiency but demonstrates strong recovery capabilities and consistent growth in equity base. The improved equity turnover in later periods suggests enhanced operational effectiveness and better utilization of shareholders’ funds to generate revenue.