Analysis of Profitability Ratios
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
Profitability Ratios (Summary)
Microchip Technology Inc., profitability ratios
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
| Profitability ratio | Description | The company |
|---|---|---|
| Gross profit margin | Gross profit margin indicates the percentage of revenue available to cover operating and other expenditures. | Microchip Technology Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Operating profit margin | A profitability ratio calculated as operating income divided by revenue. | Microchip Technology Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Net profit margin | An indicator of profitability, calculated as net income divided by revenue. | Microchip Technology Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Microchip Technology Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| ROA | A profitability ratio calculated as net income divided by total assets. | Microchip Technology Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Gross Profit Margin
Microchip Technology Inc., gross profit margin calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Gross profit | 4,449,600) | 3,378,800) | 3,242,100) | 2,931,300) | 2,420,700) | 1,757,196) | |
| Net sales | 6,820,900) | 5,438,400) | 5,274,200) | 5,349,500) | 3,980,800) | 3,407,807) | |
| Profitability Ratio | |||||||
| Gross profit margin1 | 65.23% | 62.13% | 61.47% | 54.80% | 60.81% | 51.56% | |
| Benchmarks | |||||||
| Gross Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 44.93% | 48.25% | 44.53% | 42.61% | — | — | |
| Analog Devices Inc. | 62.70% | 61.83% | 65.87% | 67.00% | — | — | |
| Applied Materials Inc. | 46.51% | 47.32% | 44.72% | 43.72% | — | — | |
| Broadcom Inc. | 66.55% | 61.36% | 56.58% | 55.24% | — | — | |
| Intel Corp. | 42.61% | 55.45% | 56.01% | 58.56% | — | — | |
| KLA Corp. | 61.00% | 59.93% | 57.81% | 59.08% | — | — | |
| Lam Research Corp. | 45.69% | 46.53% | 45.88% | 45.15% | — | — | |
| Micron Technology Inc. | 45.18% | 37.62% | 30.57% | 45.72% | — | — | |
| Monolithic Power Systems Inc. | 58.44% | 56.75% | 55.18% | 55.15% | — | — | |
| NVIDIA Corp. | 64.93% | 62.34% | 61.99% | 61.21% | — | — | |
| Qualcomm Inc. | 57.84% | 57.51% | 60.67% | 64.57% | — | — | |
| Texas Instruments Inc. | 68.76% | 67.47% | 64.10% | 63.71% | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Gross profit margin = 100 × Gross profit ÷ Net sales
= 100 × 4,449,600 ÷ 6,820,900 = 65.23%
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. | Microchip Technology Inc. gross profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Operating Profit Margin
Microchip Technology Inc., operating profit margin calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Operating income | 1,849,600) | 998,100) | 647,100) | 714,300) | 936,300) | 275,817) | |
| Net sales | 6,820,900) | 5,438,400) | 5,274,200) | 5,349,500) | 3,980,800) | 3,407,807) | |
| Profitability Ratio | |||||||
| Operating profit margin1 | 27.12% | 18.35% | 12.27% | 13.35% | 23.52% | 8.09% | |
| Benchmarks | |||||||
| Operating Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 5.36% | 22.20% | 14.02% | 9.37% | — | — | |
| Analog Devices Inc. | 27.29% | 23.12% | 26.74% | 28.55% | — | — | |
| Applied Materials Inc. | 30.20% | 29.87% | 25.37% | 22.93% | — | — | |
| Broadcom Inc. | 42.84% | 31.03% | 16.80% | 15.24% | — | — | |
| Intel Corp. | 3.70% | 24.62% | 30.41% | 30.62% | — | — | |
| KLA Corp. | 39.67% | 35.97% | 25.87% | 30.41% | — | — | |
| Lam Research Corp. | 31.24% | 30.64% | 26.62% | 25.53% | — | — | |
| Micron Technology Inc. | 31.54% | 22.68% | 14.01% | 31.51% | — | — | |
| Monolithic Power Systems Inc. | 29.36% | 21.73% | 18.81% | 16.33% | — | — | |
| NVIDIA Corp. | 37.31% | 27.18% | 26.07% | 32.47% | — | — | |
| Qualcomm Inc. | 35.88% | 29.16% | 26.58% | 31.59% | — | — | |
| Texas Instruments Inc. | 50.63% | 48.84% | 40.76% | 39.79% | — | — | |
| Operating Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 27.35% | 28.27% | 25.87% | — | — | — | |
| Operating Profit Margin, Industry | |||||||
| Information Technology | 26.53% | 26.83% | 22.82% | — | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Operating profit margin = 100 × Operating income ÷ Net sales
= 100 × 1,849,600 ÷ 6,820,900 = 27.12%
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. | Microchip Technology Inc. operating profit margin ratio improved from 2020 to 2021 and from 2021 to 2022. |
Net Profit Margin
Microchip Technology Inc., net profit margin calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| Net Profit Margin, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 5.59% | 19.24% | 25.50% | 5.07% | — | — | |
| Analog Devices Inc. | 22.88% | 19.00% | 21.79% | 22.75% | — | — | |
| Applied Materials Inc. | 25.31% | 25.53% | 21.04% | 18.52% | — | — | |
| Broadcom Inc. | 34.62% | 24.54% | 12.39% | 12.05% | — | — | |
| Intel Corp. | 12.71% | 25.14% | 26.84% | 29.25% | — | — | |
| KLA Corp. | 36.06% | 30.04% | 20.96% | 25.73% | — | — | |
| Lam Research Corp. | 26.73% | 26.72% | 22.42% | 22.70% | — | — | |
| Micron Technology Inc. | 28.24% | 21.16% | 12.54% | 26.97% | — | — | |
| Monolithic Power Systems Inc. | 24.39% | 20.04% | 19.47% | 17.33% | — | — | |
| NVIDIA Corp. | 36.23% | 25.98% | 25.61% | 35.34% | — | — | |
| Qualcomm Inc. | 29.27% | 26.94% | 22.09% | 18.07% | — | — | |
| Texas Instruments Inc. | 43.68% | 42.35% | 38.69% | 34.88% | — | — | |
| Net Profit Margin, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 25.53% | 25.81% | 23.08% | — | — | — | |
| Net Profit Margin, Industry | |||||||
| Information Technology | 22.53% | 23.72% | 19.79% | — | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,285,500 ÷ 6,820,900 = 18.85%
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. | Microchip Technology Inc. net profit margin ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Equity (ROE)
Microchip Technology Inc., ROE calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROE, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 2.41% | 42.18% | 42.66% | 12.06% | — | — | |
| Analog Devices Inc. | 7.54% | 3.66% | 10.17% | 11.64% | — | — | |
| Applied Materials Inc. | 53.51% | 48.08% | 34.21% | 32.94% | — | — | |
| Broadcom Inc. | 50.62% | 26.99% | 12.40% | 10.92% | — | — | |
| Intel Corp. | 7.90% | 20.83% | 25.79% | 27.16% | — | — | |
| KLA Corp. | 237.04% | 61.53% | 45.65% | 44.21% | — | — | |
| Lam Research Corp. | 73.35% | 64.85% | 43.53% | 46.89% | — | — | |
| Micron Technology Inc. | 17.41% | 13.34% | 6.89% | 17.59% | — | — | |
| Monolithic Power Systems Inc. | 26.23% | 19.46% | 17.01% | 14.07% | — | — | |
| NVIDIA Corp. | 36.65% | 25.64% | 22.91% | 44.33% | — | — | |
| Qualcomm Inc. | 71.81% | 90.88% | 85.54% | 89.35% | — | — | |
| Texas Instruments Inc. | 60.02% | 58.27% | 60.90% | 56.33% | — | — | |
| ROE, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 22.71% | 25.76% | 24.50% | — | — | — | |
| ROE, Industry | |||||||
| Information Technology | 39.26% | 42.62% | 35.95% | — | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,285,500 ÷ 5,894,800 = 21.81%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROE | A profitability ratio calculated as net income divided by shareholders’ equity. | Microchip Technology Inc. ROE deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Return on Assets (ROA)
Microchip Technology Inc., ROA calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| 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% | |
| Benchmarks | |||||||
| ROA, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.95% | 25.46% | 27.78% | 5.66% | — | — | |
| Analog Devices Inc. | 5.46% | 2.66% | 5.69% | 6.37% | — | — | |
| Applied Materials Inc. | 24.41% | 22.80% | 16.19% | 14.22% | — | — | |
| Broadcom Inc. | 15.69% | 8.91% | 3.90% | 4.04% | — | — | |
| Intel Corp. | 4.40% | 11.80% | 13.65% | 15.42% | — | — | |
| KLA Corp. | 26.37% | 20.23% | 13.11% | 13.05% | — | — | |
| Lam Research Corp. | 26.78% | 24.59% | 15.47% | 18.26% | — | — | |
| Micron Technology Inc. | 13.11% | 9.96% | 5.01% | 12.91% | — | — | |
| Monolithic Power Systems Inc. | 21.26% | 15.26% | 13.60% | 11.38% | — | — | |
| NVIDIA Corp. | 22.07% | 15.05% | 16.15% | 31.15% | — | — | |
| Qualcomm Inc. | 26.39% | 21.93% | 14.60% | 13.31% | — | — | |
| Texas Instruments Inc. | 32.16% | 31.48% | 28.91% | 27.84% | — | — | |
| ROA, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 12.71% | 13.62% | 11.81% | — | — | — | |
| ROA, Industry | |||||||
| Information Technology | 14.64% | 14.75% | 11.52% | — | — | — | |
Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).
1 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,285,500 ÷ 16,199,500 = 7.94%
2 Click competitor name to see calculations.
| Profitability ratio | Description | The company |
|---|---|---|
| ROA | A profitability ratio calculated as net income divided by total assets. | Microchip Technology Inc. ROA deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |