Stock Analysis on Net
Stock Analysis on Net
Microsoft Excel LibreOffice Calc

Micron Technology Inc. (NASDAQ:MU)

Analysis of Profitability Ratios

Beginner level


Profitability Ratios (Summary)

Micron Technology Inc., profitability ratios

Microsoft Excel LibreOffice Calc
Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015 Aug 28, 2014
Return on Sales
Gross profit margin 45.72% 58.87% 41.51% 20.20% 32.21% 33.24%
Operating profit margin 31.51% 49.34% 28.88% 1.35% 18.52% 18.87%
Net profit margin 26.97% 46.51% 25.04% -2.23% 17.90% 18.61%
Return on Investment
Return on equity (ROE) 17.59% 43.77% 27.33% -2.28% 23.57% 28.27%
Return on assets (ROA) 12.91% 32.59% 14.40% -1.00% 12.01% 13.53%

Based on: 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27), 10-K (filing date: 2014-10-27).

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Micron Technology Inc.’s gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Micron Technology Inc.’s operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Micron Technology Inc.’s net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Micron Technology Inc.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.
ROA A profitability ratio calculated as net income divided by total assets. Micron Technology Inc.’s ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Gross Profit Margin

Micron Technology Inc., gross profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015 Aug 28, 2014
Selected Financial Data (US$ in millions)
Gross margin 10,702  17,891  8,436  2,505  5,215  5,437 
Revenue 23,406  30,391  20,322  12,399  16,192  16,358 
Profitability Ratio
Gross profit margin1 45.72% 58.87% 41.51% 20.20% 32.21% 33.24%
Benchmarks
Gross Profit Margin, Competitors2
Advanced Micro Devices Inc. 42.61% 37.79% 34.21% 23.36% 27.06%
Apple Inc. 37.82% 38.34% 38.47% 39.08% 40.06% 38.59%
Applied Materials Inc. 43.72% 45.31% 44.93% 41.67% 40.92% 42.36%
Broadcom Inc. 55.24% 51.48% 48.25% 44.86% 52.07% 43.97%
Cisco Systems Inc. 62.94% 62.04% 62.96% 62.87% 60.38% 58.91%
Intel Corp. 58.56% 61.73% 62.25% 60.94% 62.65%
Lam Research Corp. 45.15% 46.63% 44.97% 44.49% 43.43%
NVIDIA Corp. 61.21% 59.93% 58.80% 56.11% 55.53%
Qualcomm Inc. 64.57% 54.94% 56.07% 58.61% 58.95% 59.66%
Texas Instruments Inc. 63.71% 65.11% 64.26% 61.63% 58.15%

Based on: 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27), 10-K (filing date: 2014-10-27).

1 2019 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 10,702 ÷ 23,406 = 45.72%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Gross profit margin Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. Micron Technology Inc.’s gross profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Operating Profit Margin

Micron Technology Inc., operating profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015 Aug 28, 2014
Selected Financial Data (US$ in millions)
Operating income 7,376  14,994  5,868  168  2,998  3,087 
Revenue 23,406  30,391  20,322  12,399  16,192  16,358 
Profitability Ratio
Operating profit margin1 31.51% 49.34% 28.88% 1.35% 18.52% 18.87%
Benchmarks
Operating Profit Margin, Competitors2
Advanced Micro Devices Inc. 9.37% 6.97% 3.83% -8.71% -12.05%
Apple Inc. 24.57% 26.69% 26.76% 27.84% 30.48% 28.72%
Applied Materials Inc. 22.93% 27.80% 26.61% 19.88% 17.53% 16.75%
Broadcom Inc. 15.24% 24.63% 13.51% -3.09% 23.92% 10.26%
Cisco Systems Inc. 27.39% 24.95% 24.94% 25.71% 21.91% 19.82%
Intel Corp. 30.62% 32.91% 28.58% 21.68% 25.29%
Lam Research Corp. 25.53% 29.01% 23.74% 18.25% 14.98%
NVIDIA Corp. 32.47% 33.05% 27.99% 14.91% 16.21%
Qualcomm Inc. 31.59% 3.26% 11.73% 27.57% 22.85% 28.50%
Texas Instruments Inc. 39.79% 42.53% 40.66% 35.89% 32.88%
Operating Profit Margin, Sector
Technology Hardware & Equipment 26.33% 28.03% 25.80% 24.27% 26.81%
Operating Profit Margin, Industry
Technology 25.94% 27.04% 25.48% 24.49% 25.18%

Based on: 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27), 10-K (filing date: 2014-10-27).

1 2019 Calculation
Operating profit margin = 100 × Operating income ÷ Revenue
= 100 × 7,376 ÷ 23,406 = 31.51%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Operating profit margin A profitability ratio calculated as operating income divided by revenue. Micron Technology Inc.’s operating profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Net Profit Margin

Micron Technology Inc., net profit margin calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015 Aug 28, 2014
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron 6,313  14,135  5,089  (276) 2,899  3,045 
Revenue 23,406  30,391  20,322  12,399  16,192  16,358 
Profitability Ratio
Net profit margin1 26.97% 46.51% 25.04% -2.23% 17.90% 18.61%
Benchmarks
Net Profit Margin, Competitors2
Advanced Micro Devices Inc. 5.07% 5.20% 0.81% -11.63% -16.54%
Apple Inc. 21.24% 22.41% 21.09% 21.19% 22.85% 21.61%
Applied Materials Inc. 18.52% 19.20% 23.62% 15.90% 14.26% 11.82%
Broadcom Inc. 12.05% 58.80% 9.59% -13.13% 19.99% 6.16%
Cisco Systems Inc. 22.39% 0.22% 20.02% 21.81% 18.27% 16.66%
Intel Corp. 29.25% 29.72% 15.30% 17.37% 20.63%
Lam Research Corp. 22.70% 21.49% 21.19% 15.53% 12.47%
NVIDIA Corp. 35.34% 31.37% 24.11% 12.26% 13.47%
Qualcomm Inc. 18.07% -21.40% 11.06% 24.22% 20.85% 30.08%
Texas Instruments Inc. 34.88% 35.35% 24.61% 26.89% 22.97%
Net Profit Margin, Sector
Technology Hardware & Equipment 22.63% 22.48% 19.41% 18.60% 20.87%
Net Profit Margin, Industry
Technology 22.91% 20.79% 18.52% 19.28% 19.30%

Based on: 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27), 10-K (filing date: 2014-10-27).

1 2019 Calculation
Net profit margin = 100 × Net income (loss) attributable to Micron ÷ Revenue
= 100 × 6,313 ÷ 23,406 = 26.97%

2 Click competitor name to see calculations.

Profitability ratio Description The company
Net profit margin An indicator of profitability, calculated as net income divided by revenue. Micron Technology Inc.’s net profit margin ratio improved from 2017 to 2018 but then slightly deteriorated from 2018 to 2019 not reaching 2017 level.

Return on Equity (ROE)

Micron Technology Inc., ROE calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015 Aug 28, 2014
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron 6,313  14,135  5,089  (276) 2,899  3,045 
Total Micron shareholders’ equity 35,881  32,294  18,621  12,080  12,302  10,771 
Profitability Ratio
ROE1 17.59% 43.77% 27.33% -2.28% 23.57% 28.27%
Benchmarks
ROE, Competitors2
Advanced Micro Devices Inc. 12.06% 26.62% 7.04% -119.47%
Apple Inc. 61.06% 55.56% 36.07% 35.62% 44.74% 35.42%
Applied Materials Inc. 32.94% 48.44% 36.73% 23.85% 18.09% 13.62%
Broadcom Inc. 10.92% 45.99% 8.34% -9.20% 28.94% 8.11%
Cisco Systems Inc. 34.62% 0.25% 14.53% 16.89% 15.04% 13.86%
Intel Corp. 27.16% 28.24% 13.91% 15.58% 18.70%
Lam Research Corp. 46.89% 36.62% 24.90% 15.51% 12.85%
NVIDIA Corp. 44.33% 40.78% 28.91% 13.74% 14.27%
Qualcomm Inc. 89.35% -524.14% 8.02% 17.95% 16.78% 20.34%
Texas Instruments Inc. 56.33% 62.04% 35.62% 34.33% 30.02%
ROE, Sector
Technology Hardware & Equipment 38.42% 37.00% 23.49% 21.98% 28.02%
ROE, Industry
Technology 30.04% 27.15% 20.28% 20.75% 22.58%

Based on: 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27), 10-K (filing date: 2014-10-27).

1 2019 Calculation
ROE = 100 × Net income (loss) attributable to Micron ÷ Total Micron shareholders’ equity
= 100 × 6,313 ÷ 35,881 = 17.59%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROE A profitability ratio calculated as net income divided by shareholders’ equity. Micron Technology Inc.’s ROE improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.

Return on Assets (ROA)

Micron Technology Inc., ROA calculation, comparison to benchmarks

Microsoft Excel LibreOffice Calc
Aug 29, 2019 Aug 30, 2018 Aug 31, 2017 Sep 1, 2016 Sep 3, 2015 Aug 28, 2014
Selected Financial Data (US$ in millions)
Net income (loss) attributable to Micron 6,313  14,135  5,089  (276) 2,899  3,045 
Total assets 48,887  43,376  35,336  27,540  24,143  22,498 
Profitability Ratio
ROA1 12.91% 32.59% 14.40% -1.00% 12.01% 13.53%
Benchmarks
ROA, Competitors2
Advanced Micro Devices Inc. 5.66% 7.40% 1.21% -14.97% -21.23%
Apple Inc. 16.32% 16.28% 12.88% 14.20% 18.38% 17.04%
Applied Materials Inc. 14.22% 18.64% 17.68% 11.80% 9.00% 8.14%
Broadcom Inc. 4.04% 24.46% 3.11% -3.48% 12.88% 2.51%
Cisco Systems Inc. 11.88% 0.10% 7.40% 8.83% 7.91% 7.47%
Intel Corp. 15.42% 16.45% 7.79% 9.10% 11.08%
Lam Research Corp. 18.26% 19.08% 14.00% 7.45% 7.00%
NVIDIA Corp. 31.15% 27.11% 16.93% 8.33% 8.76%
Qualcomm Inc. 13.31% -14.88% 3.77% 10.90% 10.38% 16.40%
Texas Instruments Inc. 27.84% 32.56% 20.87% 21.88% 18.40%
ROA, Sector
Technology Hardware & Equipment 14.64% 14.76% 10.32% 10.37% 13.72%
ROA, Industry
Technology 12.91% 11.93% 9.22% 10.14% 11.34%

Based on: 10-K (filing date: 2019-10-17), 10-K (filing date: 2018-10-15), 10-K (filing date: 2017-10-26), 10-K (filing date: 2016-10-28), 10-K (filing date: 2015-10-27), 10-K (filing date: 2014-10-27).

1 2019 Calculation
ROA = 100 × Net income (loss) attributable to Micron ÷ Total assets
= 100 × 6,313 ÷ 48,887 = 12.91%

2 Click competitor name to see calculations.

Profitability ratio Description The company
ROA A profitability ratio calculated as net income divided by total assets. Micron Technology Inc.’s ROA improved from 2017 to 2018 but then deteriorated significantly from 2018 to 2019.