Micron Technology Inc. (NASDAQ:MU)

The analysis of the quarterly financial ratios reveals several notable trends over the observed periods.

Net fixed asset turnover

This ratio shows a generally positive trend from the beginning to the middle of the dataset, starting at 0.83 in November 2019, experiencing some fluctuations but peaking at approximately 0.88 in March 2022. Following this peak, a clear downward trend emerges, reaching a low of 0.41 in August 2023. After this period, the ratio recovers moderately, climbing back to 0.76 by May 2025. This trajectory suggests an initial improvement in the efficiency of fixed asset use, followed by a temporary decline, and then a recovery phase.

Net fixed asset turnover (including operating lease, right-of-use asset)

The pattern mirrors closely that of the net fixed asset turnover without lease assets, with initial values around 0.83 in late 2019 and a peak slightly below that of the former ratio at around 0.87 in March 2022. The ratio decreases steadily afterward, bottoming out near 0.40 in mid-2023, then demonstrating recovery towards 0.74 by May 2025. This indicates that incorporating operating leases maintains the overall trend but slightly moderates the peak and trough values.

Total asset turnover

The total asset turnover ratio exhibits a stable initial phase around 0.48 in late 2019, followed by a gradual decline to approximately 0.24 by August 2023. Subsequently, a slight upward trend is observed, with the ratio reaching about 0.43 by May 2025. This pattern reflects a reduction in total asset efficiency over the middle periods, with early signs of recovery in more recent quarters.

Equity turnover

Equity turnover starts near 0.65 in late 2019, decreases consistently over the next few years to a low point of around 0.35 by August 2023, and subsequently rises steadily to approximately 0.67 in May 2025. The efficient use of equity initially declines but reverses into a sustained improvement phase toward the end of the period.

Overall, the data suggests that the company experienced increased efficiency in the use of fixed assets and equity up to the early 2020s. However, a pronounced decline across all turnover ratios occurred around mid-2023, which was followed by a recovery trend toward mid-2025. This cyclical pattern may reflect underlying business cycles, operational adjustments, or external economic factors impacting asset utilization and equity turnover efficiency.

The revenue of the company demonstrates notable fluctuations across the analyzed periods. Starting from a high point of 7,913 million USD in November 2018, it declined to its lowest levels around 3,693 million USD in June 2023. Following this trough, the revenue showed a recovery trend, climbing back to 9,301 million USD by May 2025. This pattern indicates an initial downward trend over multiple quarters, reaching a nadir, and then a pronounced recovery toward the end of the series.

The property, plant, and equipment (PP&E) balance consistently increased throughout the entire timeframe. From 24,807 million USD in November 2018, the balance rose steadily, reaching 44,773 million USD by May 2025. This indicates ongoing capital investments and expansion of fixed assets, with a continuous upward trajectory and no observed periods of decline or plateau.

The net fixed asset turnover ratio, which relates revenue generation efficiency relative to the fixed asset base, indicates a decline over the majority of the period before showing signs of improvement. Specifically, the ratio was 0.83 in May 2019 but gradually decreased to 0.41 by December 2022, reflecting reduced efficiency or underutilization of fixed assets during that interval. However, from December 2022 onward, the ratio improved progressively, reaching 0.76 by May 2025. This improvement aligns with the recovery in revenue, suggesting better utilization or productivity of the fixed assets in the latter periods.

Revenue Trends

Initial decline from late 2018 through mid-2023, bottoming near mid-2023, followed by a strong recovery through mid-2025.

Property, Plant, and Equipment

Consistent and substantial increases every quarter suggest ongoing capital expenditures and asset base expansion.

Net Fixed Asset Turnover Ratio

Declined notably from 2019 to late 2022, indicating diminishing efficiency; subsequently regained value, approaching levels close to those at the start of the period by mid-2025.

Overall, the data presents a scenario where the company expanded its asset base steadily even during periods of decreasing revenue and asset turnover efficiency. The recent quarters show a recovery in operational efficiency and revenue, indicating potentially improved market conditions or internal operational enhancements. Continuous capital investments combined with improving turnover ratios may signal strategic positioning for sustained growth moving forward.

The analysis of the quarterly financial data reveals notable trends in revenue, property, plant and equipment, as well as the efficiency measure represented by the net fixed asset turnover ratio.

Revenue

Revenue exhibited considerable volatility over the observed periods. Initially, it decreased sharply from a high of 7,913 million USD in late 2018 to lower levels around 4,700 to 5,800 million USD in 2019 and early 2020. From mid-2020 onward, a recovery and growth trend is evident, with revenue climbing steadily to peak at 9,301 million USD by mid-2025. Despite some fluctuations, the general trajectory in the latter half of the timeline shows strengthening sales figures, indicating an improving market position or increased demand.

Property, Plant, and Equipment (Including Operating Lease, Right-of-Use Asset)

This asset category demonstrated a mostly upward trend throughout the timeframe, reflecting ongoing capital investment or asset acquisition. Starting at approximately 24,807 million USD at the end of 2018, the figure rose consistently, surpassing 45,400 million USD by mid-2025. There were minor periods of stability and slight decreases (notably around late 2021 to early 2023), but overall, the company has expanded its asset base substantially.

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

The net fixed asset turnover ratio, which measures how efficiently the company utilizes its fixed assets to generate revenue, declined from 0.83 in mid-2019 to a low of approximately 0.40 by late 2022. This suggests a deteriorating efficiency during this period, potentially due to fixed asset growth outpacing revenue generation or reduced operational effectiveness. However, following this low point, the ratio improved to 0.74 by mid-2025, signaling a restoration of asset utilization efficiency aligned with the revenue recovery and growth phase.

In summary, the data portrays a company undergoing significant capital expansion and facing challenges in asset utilization efficiency around 2021-2022. Nevertheless, revenue recovery and subsequent improvement in asset turnover suggest corrective measures or market improvements have positively impacted operational performance in the most recent periods.

The revenue demonstrates a fluctuating pattern over the periods observed. Initially, revenue declines from a high point near 7,913 million US dollars to lower values around 4,788 million, showing a significant decrease in the earlier periods. Following this decline, a recovery phase is evident, with revenue rising to a peak of 8,642 million US dollars before experiencing another downturn to approximately 3,693 million. The latter periods show a renewed upward trend, culminating in a revenue figure of 9,301 million US dollars, indicating a strong rebound and potential growth momentum.

Total assets display a general upward trend throughout the timeframe. Starting from about 44,595 million US dollars, total assets increase steadily with some minor fluctuations, reaching approximately 78,397 million US dollars by the latest period. This sustained growth in asset base suggests ongoing investments and expansion of the asset portfolio.

The total asset turnover ratio, available for a subset of the timeline, reveals insights into the company's efficiency in using its assets to generate revenue. Initially recorded at 0.48, the ratio declines steadily to a low of approximately 0.24, indicating diminishing efficiency in asset utilization. After this low point, the ratio improves progressively, reaching back up to about 0.43 in the most recent periods. This recovery suggests enhanced operational efficiency or improved revenue generation relative to asset levels in the latter part of the timeline.

Revenue Trend

Shows initial decline followed by recovery, fluctuating significantly but ending with a notable increase.

Total Assets Trend

Consistently increasing over time, reflecting growth in asset base and likely investment activity.

Total Asset Turnover Ratio

Declines initially, indicating reduced efficiency in asset use, then recovers, showing improved operational effectiveness.

The financial data over the examined quarters reveal multiple observable trends regarding revenue, shareholders’ equity, and equity turnover.

Revenue

The revenue figures indicate significant fluctuation over the period. Initially, revenue declined from 7,913 million USD in November 2018 to a low point of 4,085 million USD in December 2022. This was followed by a modest recovery to 4,726 million USD in November 2023 and further increase to 9,301 million USD in May 2025. The decline up to late 2022 suggests challenges impacting sales or pricing, whereas the rebound and growth in the later quarters point to a strong recovery phase and possibly improved market conditions or increased sales volumes.

Total Micron Shareholders’ Equity

Shareholders’ equity demonstrates a generally upward trend from 33,869 million USD at the end of 2018 to 50,748 million USD by May 2025. This steady increase, despite some minor reductions such as the dip observed between June 2022 and November 2023, reflects growth in retained earnings or equity injections over the period. The equity base expands consistently, signaling strengthening financial position and capitalization.

Equity Turnover

The equity turnover ratio, which measures how efficiently equity is used to generate revenue, was not reported for the earliest periods but shows meaningful dynamics from May 2019 onwards. It started at 0.65, declined steadily to a low of 0.35 by November 2023, indicating reduced efficiency in utilizing equity to produce revenue. After this trough, the ratio demonstrates improvement, rising back to 0.67 by May 2025. This pattern suggests a period of underperformance followed by enhanced operational efficiency or revenue growth relative to equity.

In summary, revenue experienced a notable decline through 2022 before rebounding strongly, shareholders’ equity grew steadily throughout the period, and equity turnover declined significantly before recovering. These trends likely reflect the impact of external market conditions affecting sales in the earlier period, balanced by resilient equity growth and eventual improvements in leveraging equity to enhance revenue generation.