Micron Technology Inc. (NASDAQ:MU)

Net Income (Loss) Attributable to Micron

The net income experienced significant fluctuations over the observed period. Starting at $2,687 million in 2020, it saw a marked increase to $5,861 million in 2021, followed by further growth reaching a peak of $8,687 million in 2022. However, in 2023, the company encountered a substantial loss of $5,833 million. Subsequently, a recovery was observed with net income returning to positive figures, amounting to $778 million in 2024, and then surging again to $8,539 million in 2025.

Earnings Before Tax (EBT)

Earnings before tax showed a consistent upward trend from 2020 through 2022, increasing from $2,990 million to $9,575 million. Similar to net income, there was a significant decline in 2023 to negative $5,656 million. The following years saw the recovery of EBT, with $1,229 million in 2024 and further growth to $9,663 million in 2025, showing strong earnings before tax near the previous peak levels.

Earnings Before Interest and Tax (EBIT)

EBIT mirrored the trends in EBT and net income, with increases from $3,184 million in 2020 to $9,764 million in 2022. A marked decrease occurred in 2023 where EBIT turned negative at -$5,268 million. Recovery followed, with a positive EBIT of $1,791 million in 2024 and a substantial increase to $10,140 million in 2025, surpassing previous highs.

Earnings Before Interest, Tax, Depreciation, and Amortization (EBITDA)

EBITDA displayed a strong upward trajectory from $8,834 million in 2020 to $16,880 million in 2022. In 2023, it experienced a sharp decline to $2,488 million, but unlike EBIT and net income, it remained positive. The recovery in the subsequent years brought EBITDA to $9,571 million in 2024 and $18,492 million in 2025, achieving the highest value in the dataset.

Overall Financial Performance Trend

The overall financial data reflects robust growth from 2020 to 2022 across all major profitability measures, followed by a pronounced downturn in 2023. The downturn was severe enough to result in losses at the net income, EBT, and EBIT levels, although EBITDA remained positive albeit significantly reduced. From 2024 onward, a substantial recovery is evident, with earnings rebounding strongly and in some cases surpassing prior peak values by 2025. This pattern indicates resilience and an ability to recuperate after a challenging financial period.

The analysis of the company's financial data over the indicated periods reveals notable fluctuations in both enterprise value (EV) and earnings before interest, tax, depreciation, and amortization (EBITDA), leading to significant variations in the EV/EBITDA ratio.

Enterprise Value (EV)

The EV exhibits an overall upward trend with some volatility. From approximately 57,090 million USD at the start, it increased to 76,581 million USD the following year. It then declined to 55,097 million USD before sharply rising to 80,554 million USD. In the last two reported periods, the EV surged markedly, reaching 118,660 million USD and subsequently 215,103 million USD, indicating substantial market valuation growth in the most recent years.

EBITDA

EBITDA values display considerable variability. Starting at 8,834 million USD, EBITDA rose steadily to 12,652 million USD and then to a peak of 16,880 million USD. However, there was a substantial decline to 2,488 million USD in the fourth period under review. This was followed by a recovery to 9,571 million USD and a further increase to 18,492 million USD in the most recent period, suggesting operational performance faced some challenges before recovering strongly.

EV/EBITDA Ratio

The EV/EBITDA ratio shows marked fluctuations reflecting the changes in both EV and EBITDA. Initially, the ratio decreased slightly from 6.46 to 6.05, then sharply declined to 3.26, indicating improving valuation relative to earnings. A dramatic spike to 32.38 occurred in the fourth period, coinciding with the EBITDA drop, reflecting a valuation disconnect possibly driven by transient operational difficulties or market expectations. Following this, the ratio adjusted to lower levels of 12.40 and 11.63, aligning with EBITDA recovery and significant EV increases, suggesting a stabilization in valuation multiples.

Overall, the company experienced significant volatility in operational earnings, impacting valuation multiples notably in the mid-cycle period. Despite these fluctuations, the recent sharp growth in enterprise value, coupled with EBITDA recovery, points to strengthening market confidence and improving financial performance toward the later periods.