Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Micron Technology Inc., profitability ratios
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
- Gross Profit Margin
- The gross profit margin displayed significant variability over the periods. It started at a high of 45.72% in 2019, then dropped to 30.57% in 2020, followed by a moderate recovery to 37.62% in 2021. In 2022, it nearly returned to the initial high level at 45.18%. However, the margin sharply declined into negative territory at -9.11% in 2023, before improving again to 22.35% in 2024. This pattern indicates substantial volatility, with a notable profit contraction in 2023 and partial recovery thereafter.
- Operating Profit Margin
- The operating profit margin mirrored the trend observed in gross profit margin but showed even greater sensitivity. It started at 31.51% in 2019, fell to 14.01% in 2020, and then recovered gradually to 22.68% in 2021 and 31.54% in 2022, closely matching the 2019 peak. However, there was a steep downturn to -36.97% in 2023, indicating significant operational challenges during that period. A modest recovery to 5.19% in 2024 suggests some operational improvement but remains well below earlier performance levels.
- Net Profit Margin
- The net profit margin followed a similar trajectory, starting at 26.97% in 2019 and dropping to 12.54% in 2020. Thereafter it increased to 21.16% in 2021 and further to 28.24% in 2022, indicating improving profitability. However, a sharp decline to -37.54% in 2023 reflected considerable losses. The margin improved to 3.1% in 2024, signaling a partial rebound but continued profit challenges compared to historical peaks.
- Return on Equity (ROE)
- The return on equity also demonstrated significant fluctuations. Beginning at 17.59% in 2019, ROE decreased to 6.89% in 2020, then increased to 13.34% in 2021 and 17.41% in 2022, nearing 2019 levels. The figure dropped to -13.22% in 2023, reflecting negative returns for shareholders in that year. In 2024, ROE modestly recovered to 1.72%, showing slight improvement but still substantially below previous positive returns.
- Return on Assets (ROA)
- Return on assets followed a comparable pattern, starting at 12.91% in 2019, decreasing to 5.01% in 2020, then rising to 9.96% in 2021 and 13.11% in 2022. A negative return of -9.08% was recorded in 2023, indicating inefficiency in asset utilization that year. The value rebounded to 1.12% in 2024, suggesting some recovery in asset efficiency but not to prior levels.
Return on Sales
Return on Investment
Gross Profit Margin
Micron Technology Inc., gross profit margin calculation, comparison to benchmarks
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 5,613) | (1,416) | 13,898) | 10,423) | 6,552) | 10,702) | |
| Revenue | 25,111) | 15,540) | 30,758) | 27,705) | 21,435) | 23,406) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 22.35% | -9.11% | 45.18% | 37.62% | 30.57% | 45.72% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 49.35% | 46.12% | 44.93% | 48.25% | 44.53% | — | |
| Analog Devices Inc. | 57.08% | 64.01% | 62.70% | 61.83% | 65.87% | 67.00% | |
| Applied Materials Inc. | 47.46% | 46.70% | 46.51% | 47.32% | 44.72% | 43.72% | |
| Broadcom Inc. | 63.03% | 68.93% | 66.55% | 61.36% | 56.58% | 55.24% | |
| Intel Corp. | 32.66% | 40.04% | 42.61% | 55.45% | 56.01% | — | |
| KLA Corp. | 59.97% | 59.81% | 61.00% | 59.93% | 57.81% | 59.08% | |
| Lam Research Corp. | 47.32% | 44.62% | 45.69% | 46.53% | 45.88% | 45.15% | |
| NVIDIA Corp. | 72.72% | 56.93% | 64.93% | 62.34% | 61.99% | — | |
| Qualcomm Inc. | 56.21% | 55.70% | 57.84% | 57.51% | 60.67% | 64.57% | |
| Texas Instruments Inc. | 58.14% | 62.90% | 68.76% | 67.47% | 64.10% | — | |
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 5,613 ÷ 25,111 = 22.35%
2 Click competitor name to see calculations.
- Revenue
- Revenue showed fluctuations over the analyzed years. It initially declined from 23,406 million in 2019 to 21,435 million in 2020, followed by a substantial increase to 27,705 million in 2021 and further growth to 30,758 million in 2022. However, there was a significant drop to 15,540 million in 2023 before partially rebounding to 25,111 million in 2024. Overall, the trend indicates volatility with periods of both growth and contraction.
- Gross Margin
- The gross margin experienced substantial variations. After a decrease from 10,702 million in 2019 to 6,552 million in 2020, it recovered to 10,423 million in 2021 and improved further to a peak of 13,898 million in 2022. A sharp decline occurred in 2023, with the gross margin turning negative (-1,416 million), indicating a loss at the gross profit level for that year. It then recovered to a positive 5,613 million in 2024, though still below the earlier peak levels.
- Gross Profit Margin Percentage
- The gross profit margin percentage closely mirrors the gross margin absolute values relative to revenue. It declined from a strong 45.72% in 2019 to 30.57% in 2020, before improving to 37.62% in 2021 and nearing previous levels at 45.18% in 2022. In 2023, it sharply plunged to -9.11%, reflecting the negative gross margin and indicating significant margin pressures or cost issues. A subsequent recovery to 22.35% in 2024 demonstrates some improvement but remains well below the earlier years' profitability percentages.
- Summary of Trends
- The data reveals a business facing significant volatility over the six-year period. While revenue grew steadily until 2022, the sharp decline in 2023 and partial recovery in 2024 are notable. Gross profit and gross margin percentage trends highlight issues in cost management or pricing during 2023, which severely impacted profitability. The partial margin recovery in 2024 suggests some corrective measures or market conditions improving but not yet restoring previous profitability levels. Overall, this reflects a challenging financial environment with a need for continued focus on cost control and revenue stabilization.
Operating Profit Margin
Micron Technology Inc., operating profit margin calculation, comparison to benchmarks
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income (loss) | 1,304) | (5,745) | 9,702) | 6,283) | 3,003) | 7,376) | |
| Revenue | 25,111) | 15,540) | 30,758) | 27,705) | 21,435) | 23,406) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 5.19% | -36.97% | 31.54% | 22.68% | 14.01% | 31.51% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 7.37% | 1.77% | 5.36% | 22.20% | 14.02% | — | |
| Analog Devices Inc. | 21.56% | 31.07% | 27.29% | 23.12% | 26.74% | 28.55% | |
| Applied Materials Inc. | 28.95% | 28.86% | 30.20% | 29.87% | 25.37% | 22.93% | |
| Broadcom Inc. | 26.10% | 45.25% | 42.84% | 31.03% | 16.80% | 15.24% | |
| Intel Corp. | -21.99% | 0.17% | 3.70% | 24.62% | 30.41% | — | |
| KLA Corp. | 34.10% | 38.06% | 39.67% | 35.97% | 25.87% | 30.41% | |
| Lam Research Corp. | 28.61% | 29.69% | 31.24% | 30.64% | 26.62% | 25.53% | |
| NVIDIA Corp. | 54.12% | 15.66% | 37.31% | 27.18% | 26.07% | — | |
| Qualcomm Inc. | 25.85% | 21.74% | 35.88% | 29.16% | 26.58% | 31.59% | |
| Texas Instruments Inc. | 34.94% | 41.85% | 50.63% | 48.84% | 40.76% | — | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 21.36% | 18.50% | 27.34% | 28.30% | 25.89% | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.62% | 24.49% | 26.43% | 26.73% | 22.69% | — | |
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 1,304 ÷ 25,111 = 5.19%
2 Click competitor name to see calculations.
The financial data reveals notable fluctuations across the six-year period in several key performance indicators.
- Revenue
- Revenue experienced a decline from 2019 to 2020, decreasing from 23,406 million USD to 21,435 million USD. Following this, revenue increased steadily through 2021 and 2022, reaching a peak of 30,758 million USD in 2022. However, in 2023, revenue sharply declined to 15,540 million USD, before partially recovering to 25,111 million USD in 2024.
- Operating Income (Loss)
- Operating income showed a similar pattern of volatility. It dropped significantly from 7,376 million USD in 2019 to 3,003 million USD in 2020, then increased to 6,283 million USD in 2021 and further to 9,702 million USD in 2022. However, in 2023, the company reported a substantial operating loss of 5,745 million USD, representing a material negative deviation. The following year, 2024, saw a return to positive operating income of 1,304 million USD, albeit at a reduced level compared to earlier years.
- Operating Profit Margin
- The operating profit margin reflects the volatility seen in both revenue and operating income. It decreased markedly from 31.51% in 2019 to 14.01% in 2020, then rebounded to 22.68% in 2021 and 31.54% in 2022. The margin turned sharply negative in 2023, reaching -36.97%, which corresponds to the operating loss reported that year. In 2024, the margin returned to a positive but modest 5.19%, indicating a partial recovery but still remaining well below historical peak levels.
Overall, the data demonstrates a period of growth and profitability from 2019 through 2022, followed by a significant downturn in 2023 characterized by a steep decline in both revenue and profitability. The subsequent partial recovery in 2024 suggests some improvement but highlights ongoing challenges in regaining previous performance levels.
Net Profit Margin
Micron Technology Inc., net profit margin calculation, comparison to benchmarks
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to Micron | 778) | (5,833) | 8,687) | 5,861) | 2,687) | 6,313) | |
| Revenue | 25,111) | 15,540) | 30,758) | 27,705) | 21,435) | 23,406) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 3.10% | -37.54% | 28.24% | 21.16% | 12.54% | 26.97% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 6.36% | 3.77% | 5.59% | 19.24% | 25.50% | — | |
| Analog Devices Inc. | 17.35% | 26.94% | 22.88% | 19.00% | 21.79% | 22.75% | |
| Applied Materials Inc. | 26.41% | 25.86% | 25.31% | 25.53% | 21.04% | 18.52% | |
| Broadcom Inc. | 11.43% | 39.31% | 34.62% | 24.54% | 12.39% | 12.05% | |
| Intel Corp. | -35.32% | 3.11% | 12.71% | 25.14% | 26.84% | — | |
| KLA Corp. | 28.15% | 32.27% | 36.06% | 30.04% | 20.96% | 25.73% | |
| Lam Research Corp. | 25.68% | 25.88% | 26.73% | 26.72% | 22.42% | 22.70% | |
| NVIDIA Corp. | 48.85% | 16.19% | 36.23% | 25.98% | 25.61% | — | |
| Qualcomm Inc. | 26.03% | 20.19% | 29.27% | 26.94% | 22.09% | 18.07% | |
| Texas Instruments Inc. | 30.68% | 37.16% | 43.68% | 42.35% | 38.69% | — | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 14.94% | 17.06% | 25.54% | 25.83% | 23.10% | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 20.64% | 20.39% | 22.45% | 23.62% | 19.67% | — | |
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
Net profit margin = 100 × Net income (loss) attributable to Micron ÷ Revenue
= 100 × 778 ÷ 25,111 = 3.10%
2 Click competitor name to see calculations.
The financial data over the six annual periods reflects notable fluctuations in key performance metrics.
- Revenue
- Revenue experienced an overall upward trend from 2019 to 2022, increasing from $23,406 million in 2019 to a peak of $30,758 million in 2022. However, 2023 saw a substantial decline to $15,540 million, followed by a partial recovery in 2024 to $25,111 million.
- Net Income (Loss) Attributable to Micron
- Net income showed significant volatility during the period. It started at $6,313 million in 2019, declined sharply to $2,687 million in 2020, rebounded to $8,687 million in 2022, but then dropped to a substantial loss of $5,833 million in 2023. In 2024, net income returned to a positive but modest figure of $778 million.
- Net Profit Margin
- The net profit margin mirrored the swings in net income, averaging high profitability in 2019 at 26.97%, declining to a low of 12.54% in 2020, then improving markedly to 28.24% by 2022. A sharp negative margin of -37.54% occurred in 2023, reflecting the net loss, before recovering to a positive margin of 3.1% in 2024.
Overall, the data reveals strong growth and profitability up to 2022, followed by a severe downturn in 2023 marked by both reduced revenue and significant losses. The partial rebound in 2024 suggests some recovery of operating performance, although profitability remains well below previous peak levels. This pattern indicates a period of volatility that likely reflects external market conditions or internal operational challenges impacting financial outcomes during the latter years.
Return on Equity (ROE)
Micron Technology Inc., ROE calculation, comparison to benchmarks
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to Micron | 778) | (5,833) | 8,687) | 5,861) | 2,687) | 6,313) | |
| Total Micron shareholders’ equity | 45,131) | 44,120) | 49,907) | 43,933) | 38,996) | 35,881) | |
| Profitability Ratio | |||||||
| ROE1 | 1.72% | -13.22% | 17.41% | 13.34% | 6.89% | 17.59% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 2.85% | 1.53% | 2.41% | 42.18% | 42.66% | — | |
| Analog Devices Inc. | 4.65% | 9.32% | 7.54% | 3.66% | 10.17% | 11.64% | |
| Applied Materials Inc. | 37.77% | 41.94% | 53.51% | 48.08% | 34.21% | 32.94% | |
| Broadcom Inc. | 8.71% | 58.70% | 50.62% | 26.99% | 12.40% | 10.92% | |
| Intel Corp. | -18.89% | 1.60% | 7.90% | 20.83% | 25.79% | — | |
| KLA Corp. | 82.00% | 116.01% | 237.04% | 61.53% | 45.65% | 44.21% | |
| Lam Research Corp. | 44.82% | 54.94% | 73.35% | 64.85% | 43.53% | 46.89% | |
| NVIDIA Corp. | 69.24% | 19.76% | 36.65% | 25.64% | 22.91% | — | |
| Qualcomm Inc. | 38.60% | 33.51% | 71.81% | 90.88% | 85.54% | 89.35% | |
| Texas Instruments Inc. | 28.39% | 38.53% | 60.02% | 58.27% | 60.90% | — | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 11.77% | 13.30% | 22.70% | 25.79% | 24.53% | — | |
| ROE, Industry | |||||||
| Information Technology | 29.37% | 32.00% | 39.15% | 42.48% | 35.75% | — | |
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
ROE = 100 × Net income (loss) attributable to Micron ÷ Total Micron shareholders’ equity
= 100 × 778 ÷ 45,131 = 1.72%
2 Click competitor name to see calculations.
- Net Income Trend
- The net income attributable to the company showed significant fluctuations over the analyzed periods. Starting from a high of $6,313 million in 2019, there was a sharp decline to $2,687 million in 2020. However, the company rebounded in 2021 and 2022, reaching $5,861 million and $8,687 million respectively. In 2023, there was a notable loss of $5,833 million, which partially recovered to a positive $778 million in 2024.
- Total Shareholders' Equity
- The total shareholders' equity exhibited a generally upward trend from 2019 through 2022, increasing from $35,881 million to $49,907 million. This upward trajectory reversed in 2023, dropping to $44,120 million, before slightly increasing again to $45,131 million in 2024.
- Return on Equity (ROE)
- ROE mirrored the fluctuations in net income, starting at a strong 17.59% in 2019, then declining to 6.89% in 2020. It improved steadily in 2021 and 2022, reaching 13.34% and 17.41% respectively. However, ROE turned negative in 2023 at -13.22%, reflecting the net loss during that year, before recovering to a low positive return of 1.72% in 2024.
- Overall Insights
- The data indicates volatility in profitability and shareholder returns over the six-year period. The company experienced a strong performance in 2019 and 2022, interspersed with downturns, most notably in 2023 where net income and ROE were negative. Despite the setbacks, the shareholders’ equity generally increased, suggesting that the company maintained a solid capital base throughout the periods analyzed. The partial recovery in 2024’s net income and ROE points to potential stabilization but at reduced levels compared to peak years.
Return on Assets (ROA)
Micron Technology Inc., ROA calculation, comparison to benchmarks
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) attributable to Micron | 778) | (5,833) | 8,687) | 5,861) | 2,687) | 6,313) | |
| Total assets | 69,416) | 64,254) | 66,283) | 58,849) | 53,678) | 48,887) | |
| Profitability Ratio | |||||||
| ROA1 | 1.12% | -9.08% | 13.11% | 9.96% | 5.01% | 12.91% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 2.37% | 1.26% | 1.95% | 25.46% | 27.78% | — | |
| Analog Devices Inc. | 3.39% | 6.79% | 5.46% | 2.66% | 5.69% | 6.37% | |
| Applied Materials Inc. | 20.86% | 22.31% | 24.41% | 22.80% | 16.19% | 14.22% | |
| Broadcom Inc. | 3.56% | 19.33% | 15.69% | 8.91% | 3.90% | 4.04% | |
| Intel Corp. | -9.55% | 0.88% | 4.40% | 11.80% | 13.65% | — | |
| KLA Corp. | 17.90% | 24.07% | 26.37% | 20.23% | 13.11% | 13.05% | |
| Lam Research Corp. | 20.42% | 24.02% | 26.78% | 24.59% | 15.47% | 18.26% | |
| NVIDIA Corp. | 45.28% | 10.61% | 22.07% | 15.05% | 16.15% | — | |
| Qualcomm Inc. | 18.39% | 14.17% | 26.39% | 21.93% | 14.60% | 13.31% | |
| Texas Instruments Inc. | 13.51% | 20.12% | 32.16% | 31.48% | 28.91% | — | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 6.42% | 7.41% | 12.68% | 13.62% | 11.80% | — | |
| ROA, Industry | |||||||
| Information Technology | 11.95% | 12.52% | 14.57% | 14.67% | 11.45% | — | |
Based on: 10-K (reporting date: 2024-08-29), 10-K (reporting date: 2023-08-31), 10-K (reporting date: 2022-09-01), 10-K (reporting date: 2021-09-02), 10-K (reporting date: 2020-09-03), 10-K (reporting date: 2019-08-29).
1 2024 Calculation
ROA = 100 × Net income (loss) attributable to Micron ÷ Total assets
= 100 × 778 ÷ 69,416 = 1.12%
2 Click competitor name to see calculations.
The financial data over the six-year period reveals notable fluctuations in the company's profitability and asset base, accompanied by corresponding variations in return on assets (ROA).
- Net Income (Loss)
- The net income attributable fluctuated significantly, starting from a high of $6,313 million in 2019 and declining sharply to $2,687 million in 2020. It rebounded to $5,861 million in 2021 and further increased to a peak of $8,687 million in 2022. However, the company experienced a substantial loss of $5,833 million in 2023, followed by a return to a positive net income of $778 million in 2024. This pattern indicates substantial volatility in profitability, including a major downturn in 2023.
- Total Assets
- Total assets grew steadily across the period from $48,887 million in 2019 to $69,416 million in 2024, although there was a slight decrease in 2023 to $64,254 million from the previous year. This overall upward trend suggests ongoing investment in assets and potential growth in the company's operational capacity despite profitability challenges.
- Return on Assets (ROA)
- ROA demonstrated considerable variability in line with net income trends. It started at 12.91% in 2019, dropped to 5.01% in 2020, then improved to 9.96% in 2021 and peaked at 13.11% in 2022. The metric then turned negative at -9.08% in 2023, reflecting the net loss, before partially recovering to 1.12% in 2024. This volatility highlights the impact of fluctuating earnings on asset productivity.
Overall, the company experienced a general growth in asset base but faced inconsistent profitability, with a significant loss in 2023 affecting both net income and ROA. The data suggest that the company may have encountered operational or market challenges in 2023 but showed signs of recovery by 2024, though profitability remained subdued relative to earlier peak periods.