Analysis of Profitability Ratios
Beginner level
Profitability ratios measure the company’s ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Micron Technology Inc., profitability ratios
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
| 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% | — | |
| Analog Devices Inc. | 67.00% | 68.27% | 59.94% | 65.10% | 65.77% | — | |
| 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% | — | |
| 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
| 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% | — | |
| Analog Devices Inc. | 28.55% | 30.35% | 20.66% | 30.05% | 24.19% | — | |
| 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% | — | |
| 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 | 26.35% | 28.06% | 25.74% | 24.32% | 26.79% | — | |
| Operating Profit Margin, Industry | |||||||
| Technology | 25.96% | 27.06% | 25.45% | 24.51% | 25.17% | — | |
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
| 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% | — | |
| Analog Devices Inc. | 22.75% | 24.12% | 14.24% | 25.18% | 20.29% | — | |
| 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% | — | |
| 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% | 22.49% | 19.35% | 18.65% | 20.87% | — | |
| Net Profit Margin, Industry | |||||||
| Technology | 22.90% | 20.81% | 18.50% | 19.30% | 19.31% | — | |
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
| 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% | — | — | |
| Analog Devices Inc. | 11.64% | 13.61% | 7.16% | 16.68% | 13.74% | — | |
| 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% | — | |
| 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 | 37.42% | 36.22% | 23.06% | 21.90% | 27.79% | — | |
| ROE, Industry | |||||||
| Technology | 29.77% | 26.95% | 20.11% | 20.72% | 22.51% | — | |
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
| 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% | — | |
| Analog Devices Inc. | 6.37% | 7.31% | 3.44% | 10.81% | 9.87% | — | |
| 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% | — | |
| 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 | 14.42% | 14.57% | 10.15% | 10.37% | 13.68% | — | |
| ROA, Industry | |||||||
| Technology | 12.84% | 11.88% | 9.15% | 10.14% | 11.33% | — | |
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. |