Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Return on Sales
Return on Investment
Micron Technology Inc., profitability ratios
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 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).
The profitability profile exhibits significant volatility characterized by a cyclical downturn in 2023 followed by a period of aggressive recovery and expansion through 2026. A consistent correlation is observed between all analyzed ratios, with a synchronized decline and subsequent surge across both margin and return metrics.
- Profitability Margins
- Gross profit margin experienced a sharp reversal, peaking at 45.18% in 2022 before plummeting to -9.11% in 2023. This contraction was mirrored in the operating and net profit margins, which reached lows of -36.97% and -37.54%, respectively. However, a strong upward trajectory is evident from 2024 onward, culminating in an exceptional gross profit margin of 80.72% and a net profit margin of 63.80% by 2026, indicating a substantial increase in pricing power or a significant reduction in cost of goods sold.
- Operational Efficiency
- Operating profit margins recovered from the 2023 trough to reach 74.59% by 2026. The widening gap between gross and operating margins in the early years of the period narrowed significantly by the end of the timeframe, suggesting highly efficient management of operating expenses relative to revenue growth.
- Returns on Equity and Assets
- Return on Equity (ROE) and Return on Assets (ROA) followed the same cyclical pattern as the margins. ROE declined from 17.41% in 2022 to -13.22% in 2023, before ascending to a peak of 61.40% in 2026. Similarly, ROA recovered from a low of -9.08% in 2023 to 43.38% in 2026. This indicates a dramatic improvement in the company's ability to generate earnings from its asset base and shareholder equity.
The progression from 2023 to 2026 reflects a transition from severe financial distress to a state of high profitability. The disproportionate increase in margins and returns toward the end of the period suggests a fundamental shift in the operational environment or a highly successful strategic pivot.
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Gross Profit Margin
Micron Technology Inc., gross profit margin calculation, comparison to benchmarks
| Sep 3, 2026 | Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Gross margin | 107,504) | 14,873) | 5,613) | (1,416) | 13,898) | 10,423) | |
| Revenue | 133,188) | 37,378) | 25,111) | 15,540) | 30,758) | 27,705) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 80.72% | 39.79% | 22.35% | -9.11% | 45.18% | 37.62% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 49.52% | 49.35% | 46.12% | 44.93% | 48.25% | |
| Analog Devices Inc. | — | 61.47% | 57.08% | 64.01% | 62.70% | 61.83% | |
| Applied Materials Inc. | — | 48.67% | 47.46% | 46.70% | 46.51% | 47.32% | |
| Broadcom Inc. | — | 67.77% | 63.03% | 68.93% | 66.55% | 61.36% | |
| Intel Corp. | — | 34.77% | 32.66% | 40.04% | 42.61% | 55.45% | |
| KLA Corp. | 61.30% | 60.91% | 59.97% | 59.81% | 61.00% | 59.93% | |
| Lam Research Corp. | 50.47% | 48.71% | 47.32% | 44.62% | 45.69% | 46.53% | |
| Marvell Technology Inc. | 51.02% | 41.31% | 41.64% | 50.47% | 46.26% | 50.13% | |
| NVIDIA Corp. | 71.07% | 74.99% | 72.72% | 56.93% | 64.93% | 62.34% | |
| Qualcomm Inc. | — | 55.43% | 56.21% | 55.70% | 57.84% | 57.51% | |
| Texas Instruments Inc. | — | 57.02% | 58.14% | 62.90% | 68.76% | 67.47% | |
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 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).
1 2026 Calculation
Gross profit margin = 100 × Gross margin ÷ Revenue
= 100 × 107,504 ÷ 133,188 = 80.72%
2 Click competitor name to see calculations.
The financial trajectory of gross profitability exhibits extreme volatility over the analyzed period, characterized by a severe contraction in 2023 followed by a rapid and exponential expansion through 2026.
- Revenue Performance
- Revenue patterns demonstrate significant instability, starting at 27,705 million USD in 2021 and peaking early at 30,758 million USD in 2022. A sharp decline occurred in 2023, where revenue fell to 15,540 million USD, representing a substantial reduction in top-line performance. This was followed by a steady recovery to 37,378 million USD in 2025 and an unprecedented surge to 133,188 million USD by 2026.
- Gross Profit Margin Volatility
- The gross profit margin percentage shows a mirrored volatility to revenue. After increasing from 37.62% in 2021 to 45.18% in 2022, the margin collapsed to -9.11% in 2023, indicating that the cost of goods sold exceeded total revenue during that period. A recovery phase is observed from 2024 through 2025, with margins returning to 22.35% and 39.79% respectively, before reaching a peak of 80.72% in 2026.
- Gross Margin Absolute Value Analysis
- Absolute gross margin values followed a similar trajectory, moving from 10,423 million USD in 2021 to a deficit of -1,416 million USD in 2023. The subsequent growth period saw a return to profitability in 2024 (5,613 million USD), a return to pre-crash levels in 2025 (14,873 million USD), and a massive expansion to 107,504 million USD in 2026.
- Profitability Synthesis
- The data indicates a critical pivot point in 2023, where the company experienced a complete erosion of gross profitability. The transition from a negative margin in 2023 to an 80.72% margin in 2026 suggests a fundamental shift in the cost structure or a massive increase in pricing power and demand toward the end of the period.
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Operating Profit Margin
Micron Technology Inc., operating profit margin calculation, comparison to benchmarks
| Sep 3, 2026 | Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Operating income (loss) | 99,340) | 9,770) | 1,304) | (5,745) | 9,702) | 6,283) | |
| Revenue | 133,188) | 37,378) | 25,111) | 15,540) | 30,758) | 27,705) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 74.59% | 26.14% | 5.19% | -36.97% | 31.54% | 22.68% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 10.66% | 7.37% | 1.77% | 5.36% | 22.20% | |
| Analog Devices Inc. | — | 26.61% | 21.56% | 31.07% | 27.29% | 23.12% | |
| Applied Materials Inc. | — | 29.22% | 28.95% | 28.86% | 30.20% | 29.87% | |
| Broadcom Inc. | — | 39.89% | 26.10% | 45.25% | 42.84% | 31.03% | |
| Intel Corp. | — | -4.19% | -21.99% | 0.17% | 3.70% | 24.62% | |
| KLA Corp. | 41.69% | 39.28% | 34.10% | 38.06% | 39.67% | 35.97% | |
| Lam Research Corp. | 35.29% | 32.01% | 28.61% | 29.69% | 31.24% | 30.64% | |
| Marvell Technology Inc. | 16.14% | -12.49% | -10.31% | 4.02% | -7.79% | -8.70% | |
| NVIDIA Corp. | 60.38% | 62.42% | 54.12% | 15.66% | 37.31% | 27.18% | |
| Qualcomm Inc. | — | 27.90% | 25.85% | 21.74% | 35.88% | 29.16% | |
| Texas Instruments Inc. | — | 34.06% | 34.94% | 41.85% | 50.63% | 48.84% | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 34.52% | 20.84% | 18.20% | 26.84% | 27.90% | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | — | 30.76% | 26.46% | 24.34% | 26.23% | 26.58% | |
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 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).
1 2026 Calculation
Operating profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × 99,340 ÷ 133,188 = 74.59%
2 Click competitor name to see calculations.
The operating profit margin exhibits significant volatility over the analyzed period, characterized by an initial growth phase, a severe contraction, and a subsequent period of aggressive expansion. The trajectory reflects a high sensitivity to revenue fluctuations and substantial operational leverage.
- Initial Growth and Contraction
- Between 2021 and 2022, a positive trend is observed as the operating profit margin increased from 22.68% to 31.54%. This growth was followed by a sharp reversal in 2023, where the margin plummeted to -36.97%. This decline coincided with a significant reduction in revenue, which fell to 15,540 million US$, resulting in an operating loss of 5,745 million US$.
- Recovery Phase
- A recovery trend emerged in 2024, with the operating profit margin returning to positive territory at 5.19%. This recovery accelerated through 2025, with the margin climbing to 26.14%. During this period, revenue grew steadily, reaching 37,378 million US$ by August 2025, indicating a restoration of operational efficiency and profitability.
- Projected Exponential Expansion
- The data for 2026 indicates an unprecedented increase in both scale and profitability. The operating profit margin is projected to reach 74.59%, supported by a substantial surge in revenue to 133,188 million US$ and operating income to 99,340 million US$. This represents an exponential shift in profit generation compared to previous historical levels.
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Net Profit Margin
Micron Technology Inc., net profit margin calculation, comparison to benchmarks
| Sep 3, 2026 | Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 84,969) | 8,539) | 778) | (5,833) | 8,687) | 5,861) | |
| Revenue | 133,188) | 37,378) | 25,111) | 15,540) | 30,758) | 27,705) | |
| Profitability Ratio | |||||||
| Net profit margin1 | 63.80% | 22.84% | 3.10% | -37.54% | 28.24% | 21.16% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 12.51% | 6.36% | 3.77% | 5.59% | 19.24% | |
| Analog Devices Inc. | — | 20.58% | 17.35% | 26.94% | 22.88% | 19.00% | |
| Applied Materials Inc. | — | 24.67% | 26.41% | 25.86% | 25.31% | 25.53% | |
| Broadcom Inc. | — | 36.20% | 11.43% | 39.31% | 34.62% | 24.54% | |
| Intel Corp. | — | -0.51% | -35.32% | 3.11% | 12.71% | 25.14% | |
| KLA Corp. | 35.57% | 33.41% | 28.15% | 32.27% | 36.06% | 30.04% | |
| Lam Research Corp. | 31.27% | 29.06% | 25.68% | 25.88% | 26.73% | 26.72% | |
| Marvell Technology Inc. | 32.58% | -15.35% | -16.95% | -2.76% | -9.44% | -9.34% | |
| NVIDIA Corp. | 55.60% | 55.85% | 48.85% | 16.19% | 36.23% | 25.98% | |
| Qualcomm Inc. | — | 12.51% | 26.03% | 20.19% | 29.27% | 26.94% | |
| Texas Instruments Inc. | — | 28.28% | 30.68% | 37.16% | 43.68% | 42.35% | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 29.97% | 14.42% | 16.64% | 25.04% | 25.45% | |
| Net Profit Margin, Industry | |||||||
| Information Technology | — | 25.66% | 20.48% | 20.24% | 22.27% | 23.48% | |
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 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).
1 2026 Calculation
Net profit margin = 100 × Net income (loss) ÷ Revenue
= 100 × 84,969 ÷ 133,188 = 63.80%
2 Click competitor name to see calculations.
The financial performance exhibits significant volatility over the analyzed period, characterized by a period of steady growth, a severe contraction, and a subsequent phase of exponential expansion in both revenue and profitability.
- Profitability Volatility and Contraction
- Between 2021 and 2022, the net profit margin improved from 21.16% to 28.24%. However, a substantial reversal occurred in 2023, where the net profit margin collapsed to -37.54%. This decline coincided with a sharp reduction in revenue, which fell from 30,758 million USD in 2022 to 15,540 million USD in 2023, resulting in a net loss of 5,833 million USD.
- Recovery and Stabilization
- A recovery trend emerged in 2024 as revenue climbed to 25,111 million USD and the net profit margin returned to a positive 3.10%. This upward trajectory continued into 2025, with revenue reaching 37,378 million USD and the net profit margin restoring to 22.84%, effectively returning profitability levels to those observed in 2021.
- Exponential Growth Phase
- The period ending September 3, 2026, reflects an unprecedented increase in both operational scale and margin efficiency. Revenue surged to 133,188 million USD, while the net profit margin spiked to 63.80%. This resulted in a net income of 84,969 million USD, indicating a drastic improvement in the conversion of revenue to profit compared to all previous years.
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Return on Equity (ROE)
Micron Technology Inc., ROE calculation, comparison to benchmarks
| Sep 3, 2026 | Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 84,969) | 8,539) | 778) | (5,833) | 8,687) | 5,861) | |
| Shareholders’ equity | 138,378) | 54,165) | 45,131) | 44,120) | 49,907) | 43,933) | |
| Profitability Ratio | |||||||
| ROE1 | 61.40% | 15.76% | 1.72% | -13.22% | 17.41% | 13.34% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 6.88% | 2.85% | 1.53% | 2.41% | 42.18% | |
| Analog Devices Inc. | — | 6.70% | 4.65% | 9.32% | 7.54% | 3.66% | |
| Applied Materials Inc. | — | 34.28% | 37.77% | 41.94% | 53.51% | 48.08% | |
| Broadcom Inc. | — | 28.45% | 8.71% | 58.70% | 50.62% | 26.99% | |
| Intel Corp. | — | -0.23% | -18.89% | 1.60% | 7.90% | 20.83% | |
| KLA Corp. | 76.08% | 86.56% | 82.00% | 116.01% | 237.04% | 61.53% | |
| Lam Research Corp. | 58.26% | 54.33% | 44.82% | 54.94% | 73.35% | 64.85% | |
| Marvell Technology Inc. | 18.66% | -6.59% | -6.29% | -1.05% | -2.68% | -3.29% | |
| NVIDIA Corp. | 76.33% | 91.87% | 69.24% | 19.76% | 36.65% | 25.64% | |
| Qualcomm Inc. | — | 26.13% | 38.60% | 33.51% | 71.81% | 90.88% | |
| Texas Instruments Inc. | — | 30.73% | 28.39% | 38.53% | 60.02% | 58.27% | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 26.76% | 11.16% | 12.69% | 21.59% | 24.91% | |
| ROE, Industry | |||||||
| Information Technology | — | 34.38% | 28.82% | 31.26% | 38.03% | 41.64% | |
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 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).
1 2026 Calculation
ROE = 100 × Net income (loss) ÷ Shareholders’ equity
= 100 × 84,969 ÷ 138,378 = 61.40%
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibits a pattern of significant volatility characterized by a severe downturn followed by an exponential recovery and expansion phase.
- Profitability Volatility (2021–2024)
- An initial increase in efficiency is observed between 2021 and 2022, with ROE rising from 13.34% to 17.41%. This trend reversed sharply in 2023, when a net loss of 5,833 million USD resulted in a negative ROE of -13.22%. A recovery phase began in 2024, with ROE returning to positive territory at 1.72%, reflecting a return to profitability although margins remained lean.
- Accelerated Growth and Capital Expansion (2025–2026)
- A substantial upward trajectory is evident starting in 2025, with ROE climbing to 15.76%. This growth culminated in an exceptional spike in 2026, where ROE reached 61.40%. This surge is driven by a massive increase in net income to 84,969 million USD, which significantly outpaced the growth in shareholders' equity, which rose to 138,378 million USD during the same period.
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Return on Assets (ROA)
Micron Technology Inc., ROA calculation, comparison to benchmarks
| Sep 3, 2026 | Aug 28, 2025 | Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | |||||||
| Net income (loss) | 84,969) | 8,539) | 778) | (5,833) | 8,687) | 5,861) | |
| Total assets | 195,888) | 82,798) | 69,416) | 64,254) | 66,283) | 58,849) | |
| Profitability Ratio | |||||||
| ROA1 | 43.38% | 10.31% | 1.12% | -9.08% | 13.11% | 9.96% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | — | 5.64% | 2.37% | 1.26% | 1.95% | 25.46% | |
| Analog Devices Inc. | — | 4.72% | 3.39% | 6.79% | 5.46% | 2.66% | |
| Applied Materials Inc. | — | 19.28% | 20.86% | 22.31% | 24.41% | 22.80% | |
| Broadcom Inc. | — | 13.52% | 3.56% | 19.33% | 15.69% | 8.91% | |
| Intel Corp. | — | -0.13% | -9.55% | 0.88% | 4.40% | 11.80% | |
| KLA Corp. | 26.91% | 25.28% | 17.90% | 24.07% | 26.37% | 20.23% | |
| Lam Research Corp. | 30.88% | 25.10% | 20.42% | 24.02% | 26.78% | 24.59% | |
| Marvell Technology Inc. | 11.98% | -4.38% | -4.40% | -0.73% | -1.90% | -2.58% | |
| NVIDIA Corp. | 58.06% | 65.30% | 45.28% | 10.61% | 22.07% | 15.05% | |
| Qualcomm Inc. | — | 11.05% | 18.39% | 14.17% | 26.39% | 21.93% | |
| Texas Instruments Inc. | — | 14.46% | 13.51% | 20.12% | 32.16% | 31.48% | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | — | 15.55% | 6.13% | 7.13% | 12.17% | 13.29% | |
| ROA, Industry | |||||||
| Information Technology | — | 15.31% | 11.80% | 12.34% | 14.33% | 14.52% | |
Based on: 10-K (reporting date: 2026-09-03), 10-K (reporting date: 2025-08-28), 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).
1 2026 Calculation
ROA = 100 × Net income (loss) ÷ Total assets
= 100 × 84,969 ÷ 195,888 = 43.38%
2 Click competitor name to see calculations.
The asset efficiency and profitability trends exhibit a period of significant volatility followed by an exponential expansion in both net income and total asset scale. The Return on Assets (ROA) shifted from stable growth to a sharp contraction, followed by a multi-year recovery and an eventual surge to an unprecedented peak.
- Profitability Fluctuations and Downturn
- A positive trajectory was initially observed between 2021 and 2022, with ROA increasing from 9.96% to 13.11%. However, a severe downturn occurred in 2023, where net income fell to a loss of 5,833 million USD, resulting in a negative ROA of -9.08%.
- Recovery and Stabilization Phase
- A recovery trend emerged in 2024 as net income returned to positive territory at 778 million USD, bringing the ROA to 1.12%. This recovery accelerated in 2025, with net income rising to 8,539 million USD and ROA returning to double digits at 10.31%.
- Exponential Expansion
- An extraordinary increase in performance is observed by September 2026. Total assets grew substantially to 195,888 million USD, while net income surged to 84,969 million USD. This disproportionate growth in earnings relative to asset expansion drove the ROA to a peak of 43.38%, indicating a massive increase in operational efficiency and profitability.
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