Profitability ratios measure the company ability to generate profitable sales from its resources (assets).

Profitability Ratios (Summary)
Gross Profit Margin
Operating Profit Margin
Net Profit Margin
Return on Equity (ROE)
Return on Assets (ROA)

Microchip Technology Inc., profitability ratios

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Return on Sales
	Gross profit margin
	Operating profit margin
	Net profit margin
	Return on Investment
	Return on equity (ROE)
	Return on assets (ROA)

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).

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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.

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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.

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
	Net sales
	Profitability Ratio
	Gross profit margin¹
	Benchmarks
	Gross Profit Margin, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.

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 × ÷ =

² Click competitor name to see calculations.

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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.

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
	Net sales
	Profitability Ratio
	Operating profit margin¹
	Benchmarks
	Operating Profit Margin, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Operating Profit Margin, Sector
	Semiconductors & Semiconductor Equipment
	Operating Profit Margin, Industry
	Information Technology

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 × ÷ =

² Click competitor name to see calculations.

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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.

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
	Net sales
	Profitability Ratio
	Net profit margin¹
	Benchmarks
	Net Profit Margin, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Net Profit Margin, Sector
	Semiconductors & Semiconductor Equipment
	Net Profit Margin, Industry
	Information Technology

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 × ÷ =

² Click competitor name to see calculations.

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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.

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
	Stockholders’ equity
	Profitability Ratio
	ROE¹
	Benchmarks
	ROE, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	ROE, Sector
	Semiconductors & Semiconductor Equipment
	ROE, Industry
	Information Technology

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 × ÷ =

² Click competitor name to see calculations.

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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.

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
	Total assets
	Profitability Ratio
	ROA¹
	Benchmarks
	ROA, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	ROA, Sector
	Semiconductors & Semiconductor Equipment
	ROA, Industry
	Information Technology

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 × ÷ =

² Click competitor name to see calculations.

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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.

	Microchip Technology Inc.	Other companies (not purchased previously)
Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality
Stock Price Trends

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Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality
Stock Price Trends

Microchip Technology Inc. (NASDAQ:MCHP)

Analysis of Profitability Ratios

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Profitability Ratios (Summary)

Gross Profit Margin

Operating Profit Margin

Net Profit Margin

Return on Equity (ROE)

Return on Assets (ROA)