Microchip Technology Inc., adjustment to net income

US$ in thousands

12 months ended:	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Net income (as reported)	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Add: Available-for-sale securities	—)	—)	—)	—)	1,600)	(36)
Net income (adjusted)	1,285,500)	349,400)	570,600)	355,900)	257,000)	164,603)

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Microchip Technology Inc., adjusted profitability ratios

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Net Profit Margin
Reported net profit margin	18.85%	6.42%	10.82%	6.65%	6.42%	4.83%
Adjusted net profit margin	18.85%	6.42%	10.82%	6.65%	6.46%	4.83%
Return on Equity (ROE)
Reported ROE	21.81%	6.55%	10.22%	6.73%	7.79%	5.03%
Adjusted ROE	21.81%	6.55%	10.22%	6.73%	7.84%	5.03%
Return on Assets (ROA)
Reported ROA	7.94%	2.12%	3.27%	1.94%	3.09%	2.14%
Adjusted ROA	7.94%	2.12%	3.27%	1.94%	3.11%	2.14%

Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Microchip Technology Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Microchip Technology Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Microchip Technology Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

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	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Net sales	6,820,900)	5,438,400)	5,274,200)	5,349,500)	3,980,800)	3,407,807)
Profitability Ratio
Net profit margin¹	18.85%	6.42%	10.82%	6.65%	6.42%	4.83%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,285,500)	349,400)	570,600)	355,900)	257,000)	164,603)
Net sales	6,820,900)	5,438,400)	5,274,200)	5,349,500)	3,980,800)	3,407,807)
Profitability Ratio
Adjusted net profit margin²	18.85%	6.42%	10.82%	6.65%	6.46%	4.83%

2022 Calculations

¹ Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,285,500 ÷ 6,820,900 = 18.85%

² Adjusted net profit margin = 100 × Adjusted net income ÷ Net sales
= 100 × 1,285,500 ÷ 6,820,900 = 18.85%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by revenue.	Microchip Technology Inc. adjusted net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Stockholders’ equity	5,894,800)	5,337,100)	5,585,500)	5,287,500)	3,279,800)	3,270,711)
Profitability Ratio
ROE¹	21.81%	6.55%	10.22%	6.73%	7.79%	5.03%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,285,500)	349,400)	570,600)	355,900)	257,000)	164,603)
Stockholders’ equity	5,894,800)	5,337,100)	5,585,500)	5,287,500)	3,279,800)	3,270,711)
Profitability Ratio
Adjusted ROE²	21.81%	6.55%	10.22%	6.73%	7.84%	5.03%

2022 Calculations

¹ ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,285,500 ÷ 5,894,800 = 21.81%

² Adjusted ROE = 100 × Adjusted net income ÷ Stockholders’ equity
= 100 × 1,285,500 ÷ 5,894,800 = 21.81%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by shareholders’ equity.	Microchip Technology Inc. adjusted ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
As Reported
Selected Financial Data (US$ in thousands)
Net income	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Total assets	16,199,500)	16,478,800)	17,426,100)	18,350,000)	8,257,200)	7,686,881)
Profitability Ratio
ROA¹	7.94%	2.12%	3.27%	1.94%	3.09%	2.14%
Adjusted: Mark to Market Available-for-sale Securities
Selected Financial Data (US$ in thousands)
Adjusted net income	1,285,500)	349,400)	570,600)	355,900)	257,000)	164,603)
Total assets	16,199,500)	16,478,800)	17,426,100)	18,350,000)	8,257,200)	7,686,881)
Profitability Ratio
Adjusted ROA²	7.94%	2.12%	3.27%	1.94%	3.11%	2.14%

2022 Calculations

¹ ROA = 100 × Net income ÷ Total assets
= 100 × 1,285,500 ÷ 16,199,500 = 7.94%

² Adjusted ROA = 100 × Adjusted net income ÷ Total assets
= 100 × 1,285,500 ÷ 16,199,500 = 7.94%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by total assets.	Microchip Technology Inc. adjusted ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

Microchip Technology Inc. (NASDAQ:MCHP)

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