Stock Analysis on Net
Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

DuPont Analysis: Disaggregation of ROE, ROA, and Net Profit Margin
Quarterly Data

Microsoft Excel

Decomposing ROE involves expressing net income divided by shareholders’ equity as the product of component ratios.

Two-Component Disaggregation of ROE

Microchip Technology Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = ROA × Financial Leverage
Dec 31, 2022 32.82% = 12.85% × 2.55
Sep 30, 2022 30.22% = 11.42% × 2.64
Jun 30, 2022 25.76% = 9.50% × 2.71
Mar 31, 2022 21.81% = 7.94% × 2.75
Dec 31, 2021 16.60% = 6.00% × 2.77
Sep 30, 2021 11.35% = 3.99% × 2.84
Jun 30, 2021 8.67% = 2.94% × 2.95
Mar 31, 2021 6.55% = 2.12% × 3.09
Dec 31, 2020 6.29% = 2.01% × 3.13
Sep 30, 2020 11.17% = 3.63% × 3.08
Jun 30, 2020 11.70% = 3.78% × 3.10
Mar 31, 2020 10.22% = 3.27% × 3.12
Dec 31, 2019 11.49% = 3.67% × 3.13
Sep 30, 2019 7.15% = 2.15% × 3.33
Jun 30, 2019 7.01% = 2.03% × 3.45
Mar 31, 2019 6.73% = 1.94% × 3.47
Dec 31, 2018 6.35% = 1.81% × 3.52
Sep 30, 2018 0.53% = 0.15% × 3.61
Jun 30, 2018 2.35% = 0.63% × 3.76
Mar 31, 2018 7.79% = 3.09% × 2.52
Dec 31, 2017 7.71% = 3.02% × 2.55
Sep 30, 2017 17.03% = 7.50% × 2.27
Jun 30, 2017 13.15% = 5.69% × 2.31
Mar 31, 2017 5.03% = 2.14% × 2.35
Dec 31, 2016 — = — × 2.78
Sep 30, 2016 — = — × 2.81
Jun 30, 2016 — = — × 2.91

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in profitability measured by return on assets ratio (ROA).

Three-Component Disaggregation of ROE

Microchip Technology Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Net Profit Margin × Asset Turnover × Financial Leverage
Dec 31, 2022 32.82% = 25.73% × 0.50 × 2.55
Sep 30, 2022 30.22% = 24.14% × 0.47 × 2.64
Jun 30, 2022 25.76% = 21.34% × 0.45 × 2.71
Mar 31, 2022 21.81% = 18.85% × 0.42 × 2.75
Dec 31, 2021 16.60% = 14.95% × 0.40 × 2.77
Sep 30, 2021 11.35% = 10.71% × 0.37 × 2.84
Jun 30, 2021 8.67% = 8.40% × 0.35 × 2.95
Mar 31, 2021 6.55% = 6.42% × 0.33 × 3.09
Dec 31, 2020 6.29% = 6.29% × 0.32 × 3.13
Sep 30, 2020 11.17% = 11.62% × 0.31 × 3.08
Jun 30, 2020 11.70% = 12.23% × 0.31 × 3.10
Mar 31, 2020 10.22% = 10.82% × 0.30 × 3.12
Dec 31, 2019 11.49% = 12.23% × 0.30 × 3.13
Sep 30, 2019 7.15% = 7.15% × 0.30 × 3.33
Jun 30, 2019 7.01% = 6.79% × 0.30 × 3.45
Mar 31, 2019 6.73% = 6.65% × 0.29 × 3.47
Dec 31, 2018 6.35% = 6.53% × 0.28 × 3.52
Sep 30, 2018 0.53% = 0.60% × 0.25 × 3.61
Jun 30, 2018 2.35% = 2.85% × 0.22 × 3.76
Mar 31, 2018 7.79% = 6.42% × 0.48 × 2.52
Dec 31, 2017 7.71% = 6.33% × 0.48 × 2.55
Sep 30, 2017 17.03% = 16.23% × 0.46 × 2.27
Jun 30, 2017 13.15% = 12.53% × 0.45 × 2.31
Mar 31, 2017 5.03% = 4.83% × 0.44 × 2.35
Dec 31, 2016 — = — × — × 2.78
Sep 30, 2016 — = — × — × 2.81
Jun 30, 2016 — = — × — × 2.91

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in profitability measured by net profit margin ratio.

Five-Component Disaggregation of ROE

Microchip Technology Inc., decomposition of ROE (quarterly data)

Microsoft Excel
ROE = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover × Financial Leverage
Dec 31, 2022 32.82% = 0.80 × 0.92 × 34.80% × 0.50 × 2.55
Sep 30, 2022 30.22% = 0.81 × 0.91 × 32.60% × 0.47 × 2.64
Jun 30, 2022 25.76% = 0.84 × 0.89 × 28.65% × 0.45 × 2.71
Mar 31, 2022 21.81% = 0.87 × 0.85 × 25.50% × 0.42 × 2.75
Dec 31, 2021 16.60% = 0.84 × 0.81 × 22.11% × 0.40 × 2.77
Sep 30, 2021 11.35% = 0.89 × 0.71 × 16.97% × 0.37 × 2.84
Jun 30, 2021 8.67% = 0.87 × 0.62 × 15.39% × 0.35 × 2.95
Mar 31, 2021 6.55% = 1.03 × 0.49 × 12.81% × 0.33 × 3.09
Dec 31, 2020 6.29% = 1.38 × 0.38 × 11.99% × 0.32 × 3.13
Sep 30, 2020 11.17% = 2.59 × 0.35 × 12.65% × 0.31 × 3.08
Jun 30, 2020 11.70% = 3.23 × 0.30 × 12.61% × 0.31 × 3.10
Mar 31, 2020 10.22% = 3.79 × 0.23 × 12.28% × 0.30 × 3.12
Dec 31, 2019 11.49% = 2.52 × 0.33 × 14.67% × 0.30 × 3.13
Sep 30, 2019 7.15% = 1.28 × 0.36 × 15.59% × 0.30 × 3.33
Jun 30, 2019 7.01% = 1.79 × 0.28 × 13.78% × 0.30 × 3.45
Mar 31, 2019 6.73% = 1.74 × 0.29 × 13.22% × 0.29 × 3.47
Dec 31, 2018 6.35% = 1.36 × 0.37 × 13.11% × 0.28 × 3.52
Sep 30, 2018 0.53% = 0.07 × 0.54 × 15.34% × 0.25 × 3.61
Jun 30, 2018 2.35% = 0.20 × 0.72 × 20.11% × 0.22 × 3.76
Mar 31, 2018 7.79% = 0.35 × 0.79 × 23.52% × 0.48 × 2.52
Dec 31, 2017 7.71% = 0.40 × 0.77 × 20.90% × 0.48 × 2.55
Sep 30, 2017 17.03% = 1.19 × 0.74 × 18.36% × 0.46 × 2.27
Jun 30, 2017 13.15% = 1.30 × 0.68 × 14.14% × 0.45 × 2.31
Mar 31, 2017 5.03% = 1.96 × 0.36 × 6.75% × 0.44 × 2.35
Dec 31, 2016 — = — × — × — × — × 2.78
Sep 30, 2016 — = — × — × — × — × 2.81
Jun 30, 2016 — = — × — × — × — × 2.91

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

The primary reason for the increase in return on equity ratio (ROE) over Q3 2023 is the increase in operating profitability measured by EBIT margin ratio.

Two-Component Disaggregation of ROA

Microchip Technology Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Net Profit Margin × Asset Turnover
Dec 31, 2022 12.85% = 25.73% × 0.50
Sep 30, 2022 11.42% = 24.14% × 0.47
Jun 30, 2022 9.50% = 21.34% × 0.45
Mar 31, 2022 7.94% = 18.85% × 0.42
Dec 31, 2021 6.00% = 14.95% × 0.40
Sep 30, 2021 3.99% = 10.71% × 0.37
Jun 30, 2021 2.94% = 8.40% × 0.35
Mar 31, 2021 2.12% = 6.42% × 0.33
Dec 31, 2020 2.01% = 6.29% × 0.32
Sep 30, 2020 3.63% = 11.62% × 0.31
Jun 30, 2020 3.78% = 12.23% × 0.31
Mar 31, 2020 3.27% = 10.82% × 0.30
Dec 31, 2019 3.67% = 12.23% × 0.30
Sep 30, 2019 2.15% = 7.15% × 0.30
Jun 30, 2019 2.03% = 6.79% × 0.30
Mar 31, 2019 1.94% = 6.65% × 0.29
Dec 31, 2018 1.81% = 6.53% × 0.28
Sep 30, 2018 0.15% = 0.60% × 0.25
Jun 30, 2018 0.63% = 2.85% × 0.22
Mar 31, 2018 3.09% = 6.42% × 0.48
Dec 31, 2017 3.02% = 6.33% × 0.48
Sep 30, 2017 7.50% = 16.23% × 0.46
Jun 30, 2017 5.69% = 12.53% × 0.45
Mar 31, 2017 2.14% = 4.83% × 0.44
Dec 31, 2016 — = — × —
Sep 30, 2016 — = — × —
Jun 30, 2016 — = — × —

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2023 is the increase in profitability measured by net profit margin ratio.

Four-Component Disaggregation of ROA

Microchip Technology Inc., decomposition of ROA (quarterly data)

Microsoft Excel
ROA = Tax Burden × Interest Burden × EBIT Margin × Asset Turnover
Dec 31, 2022 12.85% = 0.80 × 0.92 × 34.80% × 0.50
Sep 30, 2022 11.42% = 0.81 × 0.91 × 32.60% × 0.47
Jun 30, 2022 9.50% = 0.84 × 0.89 × 28.65% × 0.45
Mar 31, 2022 7.94% = 0.87 × 0.85 × 25.50% × 0.42
Dec 31, 2021 6.00% = 0.84 × 0.81 × 22.11% × 0.40
Sep 30, 2021 3.99% = 0.89 × 0.71 × 16.97% × 0.37
Jun 30, 2021 2.94% = 0.87 × 0.62 × 15.39% × 0.35
Mar 31, 2021 2.12% = 1.03 × 0.49 × 12.81% × 0.33
Dec 31, 2020 2.01% = 1.38 × 0.38 × 11.99% × 0.32
Sep 30, 2020 3.63% = 2.59 × 0.35 × 12.65% × 0.31
Jun 30, 2020 3.78% = 3.23 × 0.30 × 12.61% × 0.31
Mar 31, 2020 3.27% = 3.79 × 0.23 × 12.28% × 0.30
Dec 31, 2019 3.67% = 2.52 × 0.33 × 14.67% × 0.30
Sep 30, 2019 2.15% = 1.28 × 0.36 × 15.59% × 0.30
Jun 30, 2019 2.03% = 1.79 × 0.28 × 13.78% × 0.30
Mar 31, 2019 1.94% = 1.74 × 0.29 × 13.22% × 0.29
Dec 31, 2018 1.81% = 1.36 × 0.37 × 13.11% × 0.28
Sep 30, 2018 0.15% = 0.07 × 0.54 × 15.34% × 0.25
Jun 30, 2018 0.63% = 0.20 × 0.72 × 20.11% × 0.22
Mar 31, 2018 3.09% = 0.35 × 0.79 × 23.52% × 0.48
Dec 31, 2017 3.02% = 0.40 × 0.77 × 20.90% × 0.48
Sep 30, 2017 7.50% = 1.19 × 0.74 × 18.36% × 0.46
Jun 30, 2017 5.69% = 1.30 × 0.68 × 14.14% × 0.45
Mar 31, 2017 2.14% = 1.96 × 0.36 × 6.75% × 0.44
Dec 31, 2016 — = — × — × — × —
Sep 30, 2016 — = — × — × — × —
Jun 30, 2016 — = — × — × — × —

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

The primary reason for the increase in return on assets ratio (ROA) over Q3 2023 is the increase in operating profitability measured by EBIT margin ratio.

Disaggregation of Net Profit Margin

Microchip Technology Inc., decomposition of net profit margin ratio (quarterly data)

Microsoft Excel
Net Profit Margin = Tax Burden × Interest Burden × EBIT Margin
Dec 31, 2022 25.73% = 0.80 × 0.92 × 34.80%
Sep 30, 2022 24.14% = 0.81 × 0.91 × 32.60%
Jun 30, 2022 21.34% = 0.84 × 0.89 × 28.65%
Mar 31, 2022 18.85% = 0.87 × 0.85 × 25.50%
Dec 31, 2021 14.95% = 0.84 × 0.81 × 22.11%
Sep 30, 2021 10.71% = 0.89 × 0.71 × 16.97%
Jun 30, 2021 8.40% = 0.87 × 0.62 × 15.39%
Mar 31, 2021 6.42% = 1.03 × 0.49 × 12.81%
Dec 31, 2020 6.29% = 1.38 × 0.38 × 11.99%
Sep 30, 2020 11.62% = 2.59 × 0.35 × 12.65%
Jun 30, 2020 12.23% = 3.23 × 0.30 × 12.61%
Mar 31, 2020 10.82% = 3.79 × 0.23 × 12.28%
Dec 31, 2019 12.23% = 2.52 × 0.33 × 14.67%
Sep 30, 2019 7.15% = 1.28 × 0.36 × 15.59%
Jun 30, 2019 6.79% = 1.79 × 0.28 × 13.78%
Mar 31, 2019 6.65% = 1.74 × 0.29 × 13.22%
Dec 31, 2018 6.53% = 1.36 × 0.37 × 13.11%
Sep 30, 2018 0.60% = 0.07 × 0.54 × 15.34%
Jun 30, 2018 2.85% = 0.20 × 0.72 × 20.11%
Mar 31, 2018 6.42% = 0.35 × 0.79 × 23.52%
Dec 31, 2017 6.33% = 0.40 × 0.77 × 20.90%
Sep 30, 2017 16.23% = 1.19 × 0.74 × 18.36%
Jun 30, 2017 12.53% = 1.30 × 0.68 × 14.14%
Mar 31, 2017 4.83% = 1.96 × 0.36 × 6.75%
Dec 31, 2016 — = — × — × —
Sep 30, 2016 — = — × — × —
Jun 30, 2016 — = — × — × —

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

The primary reason for the increase in net profit margin ratio over Q3 2023 is the increase in operating profitability measured by EBIT margin ratio.