Analysis of Reportable Segments
Micron Technology Inc. operates in 4 segments: Compute and Networking Business Unit (CNBU); Mobile Business Unit (MBU); Embedded Business Unit (EBU); and Storage Business Unit (SBU).
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- Income Statement
- Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Liquidity Ratios
- Analysis of Long-term (Investment) Activity Ratios
- DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
- Enterprise Value to FCFF (EV/FCFF)
- Capital Asset Pricing Model (CAPM)
- Return on Equity (ROE) since 2005
- Debt to Equity since 2005
- Total Asset Turnover since 2005
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Segment Profit Margin
Micron Technology Inc., profit margin by reportable segment
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | |
|---|---|---|---|---|---|---|
| Compute and Networking Business Unit (CNBU) | ||||||
| Mobile Business Unit (MBU) | ||||||
| Embedded Business Unit (EBU) | ||||||
| Storage Business Unit (SBU) |
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).
The annual reportable segment profit margin data demonstrates significant variability across different business units and time periods. The trends reveal fluctuating profitability levels, with some units experiencing sharp declines followed by partial recoveries, while others show consistent patterns of instability.
- Compute and Networking Business Unit (CNBU)
- The profit margin for this segment started relatively high at 46.6% in 2019. It then decreased sharply to 21.89% in 2020, rebounded somewhat to 34.98% in 2021, and strengthened further to 42.68% in 2022. However, the margin fell dramatically in 2023 to -10.25%, indicating a loss, before slightly recovering to 10.3% in 2024. This pattern suggests notable volatility with a strong recovery interrupted by a significant downturn in 2023.
- Mobile Business Unit (MBU)
- The segment exhibited a declining trend from 40.7% in 2019 to 18.84% in 2020, followed by a moderate recovery to 30.17% in 2021. The margin slightly decreased to 29.75% in 2022 but then experienced a severe plunge to -48.21% in 2023, which is the lowest margin recorded among all segments and years. In 2024, the margin marginally improved to 1.79%. This indicates considerable instability with a pronounced loss in 2023 and minimal recovery afterward.
- Embedded Business Unit (EBU)
- Profit margins for this unit started at 29.42% in 2019 and declined to 10.91% in 2020. Thereafter, it saw a steady increase, reaching 23.9% in 2021 and peaking at 33.47% in 2022. This was followed by a significant drop to 10.5% in 2023 and a further decline to 4.31% in 2024. While the segment showed a positive upward trend through 2022, the substantial decrease in the last two years suggests emerging challenges affecting profitability.
- Storage Business Unit (SBU)
- This segment began with a negative margin of -10.09% in 2019, indicating initial losses. The margin improved gradually to 0.96% in 2020, then to 4.35% in 2021, and further to 11.27% in 2022, marking a period of consistent progress and approaching profitability. However, margins collapsed drastically to -73.91% in 2023, representing a severe loss, and slightly improved to -7.88% in 2024 but remained negative. This reflects a highly volatile margin trajectory with a marked downturn following several years of gradual recovery.
Segment Profit Margin: Compute and Networking Business Unit (CNBU)
Micron Technology Inc.; Compute and Networking Business Unit (CNBU); segment profit margin calculation
| 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) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
- Operating Income (Loss)
- The operating income for the period experienced significant fluctuations. Initially, there was a decline from 4645 million US dollars in 2019 to 2010 million in 2020, followed by a recovery to 4295 million in 2021. The upward trend continued, peaking at 5844 million in 2022. However, a sharp reversal occurred in 2023, with the figure turning negative to a loss of 585 million, before partially recovering to a positive 980 million in 2024.
- Revenue
- Revenue displayed considerable variability over the examined periods. It decreased from 9968 million US dollars in 2019 to 9184 million in 2020, then rose substantially to 12280 million in 2021, and further to 13693 million in 2022. In 2023, revenue saw a steep decline to 5710 million, with a notable rebound to 9513 million in 2024, although still below the peak values of 2021 and 2022.
- Segment Profit Margin
- The segment profit margin mirrored the trends observed in operating income and revenue. It dropped from 46.6% in 2019 to a low of 21.89% in 2020, then improved to 34.98% in 2021 and reached 42.68% in 2022. The margin turned negative in 2023, falling to -10.25%, indicating operational challenges during that year. In 2024, the margin returned to a positive figure of 10.3%, although it remained significantly below the levels seen in prior years.
- Summary of Trends
- Overall, the data reveals a pattern of initial decline in financial performance from 2019 to 2020, followed by a period of growth and peak performance in 2021 and 2022. The year 2023 shows a marked downturn with negative operating income and profit margin, accompanied by a substantial drop in revenue. Partial recovery is evident in 2024, though the financial metrics have yet to reach the earlier peak levels.
Segment Profit Margin: Mobile Business Unit (MBU)
Micron Technology Inc.; Mobile Business Unit (MBU); segment profit margin calculation
| 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) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
The financial performance of the Mobile Business Unit (MBU) over the examined years exhibits notable fluctuations in both revenue and operating income, accompanied by significant volatility in profitability as expressed by the segment profit margin.
- Revenue Trends
- Revenue demonstrated variation across the periods, beginning at $6,403 million in 2019, followed by a decrease to $5,702 million in 2020. Subsequently, revenue increased substantially to $7,203 million in 2021 and further to $7,260 million in 2022. However, a sharp decline occurred in 2023, with revenue plummeting to $3,630 million, before partially recovering to $6,354 million in 2024. This pattern suggests fluctuating demand or business conditions impacting the unit's top-line.
- Operating Income (Loss) Trends
- Operating income closely mirrored the revenue trajectory but with greater variability in magnitude. Starting from a positive $2,606 million in 2019, operating income dropped significantly to $1,074 million in 2020, rebounded to $2,173 million in 2021, and remained stable at approximately $2,160 million in 2022. The year 2023 marked a substantial operating loss of $1,750 million, indicating severe operational challenges or increased costs relative to revenue. A modest recovery to a positive income of $114 million occurred in 2024, yet this figure remains substantially lower than earlier years.
- Segment Profit Margin Trends
- The segment profit margin reveals pronounced volatility. It started at a robust 40.7% in 2019, declined sharply to 18.84% in 2020, and then improved to around 30% for both 2021 and 2022. In 2023, profit margin turned negative at -48.21%, reflecting the significant operating loss during that year. Although the margin returned to positive territory at 1.79% in 2024, it remained far below prior performance levels. This variability indicates fluctuating cost structures or pricing power within the segment.
Overall, the Mobile Business Unit experienced a period of strong profitability and revenue growth from 2019 through 2022, followed by a dramatic downturn in 2023, characterized by major declines in revenue, operating income, and profit margin. The partial recovery observed in 2024, while positive, has not restored the segment to its previous levels of financial performance. This pattern warrants further investigation into the factors contributing to the downturn and the challenges impeding full recovery.
Segment Profit Margin: Embedded Business Unit (EBU)
Micron Technology Inc.; Embedded Business Unit (EBU); segment profit margin calculation
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | |
|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in millions) | ||||||
| Operating income (loss) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
- Revenue Trends
- Revenue demonstrates a fluctuating pattern over the analyzed periods. It decreased from 3,137 million USD in 2019 to 2,759 million USD in 2020, followed by a significant increase to 4,209 million USD in 2021 and further growth to 5,235 million USD in 2022. However, revenue declined sharply to 3,637 million USD in 2023 before rebounding to 4,614 million USD in 2024. These fluctuations suggest varying market conditions or changes in demand impacting revenue generation.
- Operating Income (Loss) Trends
- Operating income shows considerable volatility across the years. Starting at 923 million USD in 2019, it dropped substantially to 301 million USD in 2020 but recovered to 1,006 million USD in 2021 and further increased to 1,752 million USD in 2022. Nonetheless, a sharp decline ensued in 2023 to 382 million USD, with a further reduction to 199 million USD in 2024. This pattern indicates profitability challenges despite revenue fluctuations, especially in the last two years.
- Segment Profit Margin Trends
- The segment profit margin exhibits notable volatility. It began at a healthy 29.42% in 2019, plunged to 10.91% in 2020, then improved significantly to 23.9% in 2021 and peaked at 33.47% in 2022. However, the margin decreased substantially thereafter, dropping to 10.5% in 2023 and further declining to 4.31% in 2024. The sharp reduction in profit margin in the most recent years signals reduced operational efficiency or increased cost pressures within the segment.
- Overall Insights
- The data indicate a segment experiencing high variability in both revenue and profitability. After strong growth and margin expansion up to 2022, both revenue and operating income faced considerable declines in 2023, with only partial recovery in revenue but continued compression in profitability into 2024. The declining profit margin despite some revenue recovery suggests increasing cost challenges or pricing pressures. Management attention may be required to address these issues to stabilize and improve segment financial performance.
Segment Profit Margin: Storage Business Unit (SBU)
Micron Technology Inc.; Storage Business Unit (SBU); segment profit margin calculation
| 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) | ||||||
| Revenue | ||||||
| Segment Profitability Ratio | ||||||
| Segment profit margin1 | ||||||
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
Segment profit margin = 100 × Operating income (loss) ÷ Revenue
= 100 × ÷ =
The annual data for the Storage Business Unit reveals several notable trends in revenue, operating income, and segment profit margin over the six-year period from 2019 to 2024.
- Revenue
- The revenue figures show an overall upward trend with fluctuations. Starting at $3,826 million in 2019, revenue remained relatively stable in 2020 at $3,765 million. It increased steadily over the next two years to $3,973 million in 2021 and $4,553 million in 2022. However, in 2023 there was a significant decline to $2,553 million, followed by a sharp recovery in 2024, reaching $4,592 million, the highest value in the observed period.
- Operating Income (Loss)
- Operating income displayed considerable volatility throughout the years. Initially, there was a substantial operating loss of $386 million in 2019. This shifted to a modest operating income of $36 million in 2020, rising significantly to $173 million in 2021 and further to $513 million in 2022, indicating a period of improving profitability. In 2023, the segment suffered a dramatic downturn with an operating loss of $1,887 million, the largest loss recorded in the dataset. The loss narrowed in 2024 to $362 million but remained negative.
- Segment Profit Margin
- The profit margin trend aligns with the operating income and revenue patterns. The segment margin moved from a negative margin of -10.09% in 2019 to a near break-even margin of 0.96% in 2020, improving further to 4.35% in 2021 and peaking at 11.27% in 2022. This positive trajectory was abruptly reversed in 2023 with a steep decline to -73.91%, reflecting the severe operating loss reported that year. In 2024, the margin partially recovered but remained negative at -7.88%.
In summary, the Storage Business Unit experienced growth and improving profitability from 2019 through 2022, characterized by increasing revenues, positive operating income, and rising profit margins. However, this positive trend was sharply disrupted in 2023 with significant declines in revenue, operating income, and margin, indicating a challenging year. The partial rebound in revenue and margin in 2024, while still negative in profit margin and operating income, suggests some recovery but continued operational challenges remain.
Revenue
Micron Technology Inc., revenue by reportable segment
US$ in millions
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | |
|---|---|---|---|---|---|---|
| Compute and Networking Business Unit (CNBU) | ||||||
| Mobile Business Unit (MBU) | ||||||
| Embedded Business Unit (EBU) | ||||||
| Storage Business Unit (SBU) | ||||||
| All Other | ||||||
| Total |
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).
- Compute and Networking Business Unit (CNBU)
- The revenue of this segment initially showed a decline from 9,968 million USD in 2019 to 9,184 million USD in 2020. Following this, there was a significant upward trend, reaching 13,693 million USD by 2022. However, in 2023, revenue sharply decreased to 5,710 million USD before partially recovering to 9,513 million USD in 2024.
- Mobile Business Unit (MBU)
- This segment demonstrated a similar pattern, with revenues dropping from 6,403 million USD in 2019 to 5,702 million USD in 2020. Revenues increased steadily to 7,260 million USD in 2022, then declined markedly to 3,630 million USD in 2023. By 2024, revenue rebounded to 6,354 million USD, approaching earlier levels.
- Embedded Business Unit (EBU)
- Revenue experienced a decrease from 3,137 million USD in 2019 to 2,759 million USD in 2020, followed by consistent growth through 2022, reaching 5,235 million USD. There was a decline to 3,637 million USD in 2023, with an increase to 4,614 million USD recorded in 2024.
- Storage Business Unit (SBU)
- Revenues in this segment remained relatively stable between 2019 and 2020, with values of 3,826 and 3,765 million USD respectively. A gradual increase ensued until 2022 when revenues reached 4,553 million USD. The 2023 period saw a significant drop to 2,553 million USD, followed by a strong recovery to 4,592 million USD in 2024.
- All Other
- This segment represents a minimal portion of total revenue, fluctuating at low values throughout the periods. It declined from 72 million USD in 2019 to 25 million USD in 2020, with further variations and cyclical changes through 2024, ending at 38 million USD.
- Total Revenue
- Total revenue followed a pronounced trend, starting at 23,406 million USD in 2019 and decreasing to 21,435 million USD in 2020. A strong growth phase was observed, peaking at 30,758 million USD in 2022. However, 2023 revealed a sharp contraction to 15,540 million USD, before rebounding to 25,111 million USD in 2024. This pattern indicates significant volatility possibly linked to market or industry-wide factors impacting all segments concurrently.
Operating income (loss)
Micron Technology Inc., operating income (loss) by reportable segment
US$ in millions
| Aug 29, 2024 | Aug 31, 2023 | Sep 1, 2022 | Sep 2, 2021 | Sep 3, 2020 | Aug 29, 2019 | |
|---|---|---|---|---|---|---|
| Compute and Networking Business Unit (CNBU) | ||||||
| Mobile Business Unit (MBU) | ||||||
| Embedded Business Unit (EBU) | ||||||
| Storage Business Unit (SBU) | ||||||
| All Other | ||||||
| Total |
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).
The operating income (loss) data across the reportable segments reveals distinct fluctuations and trends over the analyzed periods.
- Compute and Networking Business Unit (CNBU)
- The CNBU exhibited volatility over the years. The operating income started relatively strong at 4645 million USD in 2019, declined substantially to 2010 million USD in 2020, then rebounded to 4295 million USD in 2021 and further increased to a peak of 5844 million USD in 2022. However, this was followed by a significant loss of 585 million USD in 2023 before recovering mildly to a positive 980 million USD in 2024.
- Mobile Business Unit (MBU)
- The MBU showed a similar pattern of initial decline from 2606 million USD in 2019 to 1074 million USD in 2020, then a recovery to 2173 million USD in 2021 and holding steady with 2160 million USD in 2022. Yet, a dramatic operating loss occurred in 2023, amounting to 1750 million USD, followed by a minor positive turnaround to 114 million USD in 2024.
- Embedded Business Unit (EBU)
- The EBU demonstrated generally increasing operating income from 923 million USD in 2019 to 1752 million USD in 2022, indicating growth momentum over this period. Nevertheless, the segment encountered a sharp reduction in 2023 down to 382 million USD, with a further decrease to 199 million USD in 2024, although it remained positive.
- Storage Business Unit (SBU)
- The SBU illustrated inconsistent performance marked by losses and moderate gains. It began with a loss of 386 million USD in 2019, then shifted to a minor profit of 36 million USD in 2020. Over 2021 and 2022, it improved to 173 million USD and 513 million USD respectively, before plunging deeply into losses of 1887 million USD in 2023 and 362 million USD in 2024.
- All Other
- This category maintained relatively stable and minor operating income figures, fluctuating narrowly between small positive and negative values, with no significant trend or volatility observed during the periods.
- Total Operating Income (Loss)
- The consolidated operating income initially demonstrated volatility, starting high at 7801 million USD in 2019, dropping to 3419 million USD in 2020, then increasing considerably to a peak of 10281 million USD in 2022. This was followed by a substantial consolidation loss of 3832 million USD in 2023, and a positive recovery to 948 million USD in 2024.
Overall, a clear pattern emerges of strong performance in 2019 and 2022, valleys of decline in 2020 and especially 2023, and signs of partial recovery in 2024. The sharp losses in 2023 across several segments notably affected the total operating income, suggesting significant challenges during that year before the company started to regain profitability.