Micron Technology Inc. (MU)
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 | |||||||
| 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% | — | |
| NVIDIA Corp. | 61.21% | 59.93% | 58.80% | 56.11% | 55.53% | 54.91% | |
| Qualcomm Inc. | 64.57% | 54.94% | 56.07% | 58.61% | 58.95% | 59.66% | |
| Texas Instruments Inc. | — | 65.11% | 64.26% | 61.63% | 58.15% | 56.93% | |
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 | |||||||
| 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% | — | |
| NVIDIA Corp. | 32.47% | 33.05% | 27.99% | 14.91% | 16.21% | 12.01% | |
| Qualcomm Inc. | 31.59% | 3.26% | 11.73% | 27.57% | 22.85% | 28.50% | |
| Texas Instruments Inc. | — | 42.53% | 40.66% | 35.89% | 32.88% | 30.26% | |
| Operating Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 28.28% | 26.11% | 24.71% | 27.34% | — | |
| Operating Profit Margin, Industry | |||||||
| Technology | — | 27.34% | 25.84% | 24.92% | 25.58% | — | |
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
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 | |||||||
| 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% | — | |
| NVIDIA Corp. | 35.34% | 31.37% | 24.11% | 12.26% | 13.47% | 10.65% | |
| Qualcomm Inc. | 18.07% | -21.40% | 11.06% | 24.22% | 20.85% | 30.08% | |
| Texas Instruments Inc. | — | 35.35% | 24.61% | 26.89% | 22.97% | 21.63% | |
| Net Profit Margin, Sector | |||||||
| Technology Hardware & Equipment | — | 22.72% | 19.60% | 18.96% | 21.34% | — | |
| Net Profit Margin, Industry | |||||||
| Technology | — | 21.05% | 18.79% | 19.69% | 19.66% | — | |
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 | |||||||
| 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% | — | |
| NVIDIA Corp. | 44.33% | 40.78% | 28.91% | 13.74% | 14.27% | 9.87% | |
| Qualcomm Inc. | 89.35% | -524.14% | 8.02% | 17.95% | 16.78% | 20.34% | |
| Texas Instruments Inc. | — | 62.04% | 35.62% | 34.33% | 30.02% | 27.15% | |
| ROE, Sector | |||||||
| Technology Hardware & Equipment | — | 37.05% | 23.49% | 22.26% | 28.44% | — | |
| ROE, Industry | |||||||
| Technology | — | 27.18% | 20.38% | 21.05% | 22.87% | — | |
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 | |||||||
| 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% | — | |
| NVIDIA Corp. | 31.15% | 27.11% | 16.93% | 8.33% | 8.76% | 6.07% | |
| Qualcomm Inc. | 13.31% | -14.88% | 3.77% | 10.90% | 10.38% | 16.40% | |
| Texas Instruments Inc. | — | 32.56% | 20.87% | 21.88% | 18.40% | 15.92% | |
| ROA, Sector | |||||||
| Technology Hardware & Equipment | — | 14.73% | 10.31% | 10.53% | 13.99% | — | |
| ROA, Industry | |||||||
| Technology | — | 11.98% | 9.29% | 10.33% | 11.52% | — | |
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. |