Net margin is calculated as Net Income divided by its Revenue. Microchip Technology's Net Income for the
three
months ended in Dec. 2023 was $419 Mil. Microchip Technology's Revenue for the
three
months ended in Dec. 2023 was $1,766 Mil. Therefore, Microchip Technology's net margin for the quarter that ended in Dec. 2023 was 23.74%.
The historical rank and industry rank for Microchip Technology's Net Margin % or its related term are showing as below:
MCHP'
s Net Margin % Range Over the Past 10 Years
Min: 4.83 Med: 12.87 Max: 27.59
Current: 27.59
MCHP's Net Margin % is ranked better than 93.89% of 982
companies
in the Semiconductors industry
Industry Median: 4.43
vs MCHP: 27.59
Microchip Technology Net Margin % Historical Data
The historical data trend for Microchip Technology's Net Margin % can be seen below:
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
For the Semiconductors subindustry, Microchip Technology's Net Margin %, along with its competitors' market caps and Net Margin % data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microchip Technology Net Margin % Distribution
For the Semiconductors industry and Technology sector, Microchip Technology's Net Margin % distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Net Margin % falls into.
Microchip Technology Net Margin % Calculation
Net margin - also known as net profit margin is the ratio of Net Income divided by net sales or Revenue, usually presented in percent.
Microchip Technology's Net Margin for the fiscal year that ended in Mar. 2023 is calculated as
* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD. * For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.
Microchip Technology (NAS:MCHP) Net Margin % Explanation
Although Net Income and Earnings-per-Share (EPS) are the most widely used parameter in measuring a company's profitability and valuation, it is the least reliable. The reason is that reported earnings can be manipulated easily by adjusting any numbers such as Depreciation, Depletion and Amotorization and non-recurring items.
But the long term trend of the net margin is a good indicator of the competitiveness and health of the business.
Microchip Technology Net Margin % Related Terms
Thank you for viewing the detailed overview of Microchip Technology's Net Margin % provided by GuruFocus.com. Please click on the following links to see related term pages.
Microchip Technology (Microchip Technology) Business Description
Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.
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