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Micron Technology ROA %

: 16.29% (As of May. 2022)
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ROA % is calculated as Net Income divided by its average Total Assets over a certain period of time. Micron Technology's annualized Net Income for the quarter that ended in May. 2022 was $10,504 Mil. Micron Technology's average Total Assets over the quarter that ended in May. 2022 was $64,496 Mil. Therefore, Micron Technology's annualized ROA % for the quarter that ended in May. 2022 was 16.29%.

The historical rank and industry rank for Micron Technology's ROA % or its related term are showing as below:

MU' s ROA % Range Over the Past 10 Years
Min: -7.1   Med: 11.44   Max: 35.92
Current: 16.25

During the past 13 years, Micron Technology's highest ROA % was 35.92%. The lowest was -7.10%. And the median was 11.44%.

MU's ROA % is ranked better than
83.06% of 915 companies
in the Semiconductors industry
Industry Median: 6.19 vs MU: 16.25

Micron Technology ROA % Historical Data

The historical data trend for Micron Technology's ROA % 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.

* Premium members only.

Micron Technology Annual Data
Trend Aug12 Aug13 Aug14 Aug15 Aug16 Aug17 Aug18 Aug19 Aug20 Aug21
ROA %
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 16.19 35.92 13.68 5.24 10.42

Micron Technology Quarterly Data
Aug17 Nov17 Feb18 May18 Aug18 Nov18 Feb19 May19 Aug19 Nov19 Feb20 May20 Aug20 Nov20 Feb21 May21 Aug21 Nov21 Feb22 May22
ROA % Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 12.61 18.96 15.36 14.49 16.29

Competitive Comparison

For the Semiconductors subindustry, Micron Technology's ROA %, along with its competitors' market caps and ROA % 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.

   

Micron Technology ROA % Distribution

For the Semiconductors industry and Technology sector, Micron Technology's ROA % distribution charts can be found below:

* The bar in red indicates where Micron Technology's ROA % falls into.



Micron Technology ROA % Calculation

Micron Technology's annualized ROA % for the fiscal year that ended in Aug. 2021 is calculated as:

ROA %=Net Income (A: Aug. 2021 )/( (Total Assets (A: Aug. 2020 )+Total Assets (A: Aug. 2021 ))/ count )
=5861/( (53678+58849)/ 2 )
=5861/56263.5
=10.42 %

Micron Technology's annualized ROA % for the quarter that ended in May. 2022 is calculated as:

ROA %=Net Income (Q: May. 2022 )/( (Total Assets (Q: Feb. 2022 )+Total Assets (Q: May. 2022 ))/ count )
=10504/( (63696+65296)/ 2 )
=10504/64496
=16.29 %

* 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.

In the calculation of annual ROA %, the net income of the last fiscal year and the average total assets over the fiscal year are used. In calculating the quarterly data, the Net Income data used here is four times the quarterly (May. 2022) net income data. ROA % is displayed in the 30-year financial page.


Micron Technology  (NAS:MU) ROA % Explanation

ROA % measures the rate of return on the total assets (shareholder equity plus liabilities). It measures a firm's efficiency at generating profits from shareholders' equity plus its liabilities. ROA % shows how well a company uses what it has to generate earnings. ROA %s can vary drastically across industries. Therefore, ROA % should not be used to compare companies in different industries. For retailers, a ROA % of higher than 5% is expected. For example, Wal-Mart (WMT) has a ROA % of about 8% as of 2012. For banks, ROA % is close to their interest spread. A bank’s ROA % is typically well under 2%.

Similar to ROE, ROA % is affected by profit margins and asset turnover. This can be seen from the Du Pont Formula:

ROA %(Q: May. 2022 )
=Net Income/Total Assets
=10504/64496
=(Net Income / Revenue)*(Revenue / Total Assets)
=(10504 / 34568)*(34568 / 64496)
=Net Margin %*Asset Turnover
=30.39 %*0.536
=16.29 %

Note: The Net Income data used here is four times the quarterly (May. 2022) net income data. The Revenue data used here is four times the quarterly (May. 2022) revenue data.

* 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.


Be Aware

Like ROE, ROA % is calculated with only 12 months data. Fluctuations in the company's earnings or business cycles can affect the ratio drastically. It is important to look at the ratio from a long term perspective. ROA % can be affected by events such as stock buyback or issuance, and by goodwill, a company's tax rate and its interest payment. ROA % may not reflect the true earning power of the assets. A more accurate measurement is ROC % (ROC).

Many analysts argue the higher return the better. Buffett states that really high ROA % may indicate vulnerability in the durability of the competitive advantage.

E.g. Raising $43b to take on KO is impossible, but $1.7b to take on Moody's is. Although Moody's ROA % and underlying economics is far superior to Coca Cola, the durability is far weaker because of lower entry cost.


Micron Technology ROA % Related Terms

Thank you for viewing the detailed overview of Micron Technology's ROA % provided by GuruFocus.com. Please click on the following links to see related term pages.


Micron Technology Business Description

Micron Technology logo
Address
8000 South Federal Way, Post Office Box 6, Boise, ID, USA, 83716-9632
Micron historically focused on designing and manufacturing DRAM for PCs. The firm then expanded into the NAND flash memory market. It increased its DRAM scale with the purchase of Elpida (completed in mid-2013) and Inotera (completed in December 2016). The firm's DRAM and NAND products tailored to PCs, data centers, smartphones, game consoles, automotives, and other computing devices.
Executives
Murphy Mark J. officer: EVP & Chief Financial Officer DELPHI AUTOMOTIVE PLC 5725 DELPHI DRIVE TROY MI 48098
Beard Robert P officer: SVP, General Counsel&Secretary 8000 S. FEDERAL WAY BOISE ID 83716
Haynesworth Linnie M director 214 N TRYON STREET CHARLOTTE NC 28202
Allen Scott R. officer: CVP, Chief Accounting Officer 11690 N.W. 105TH STREET MIAMI FL 33178
Dugle Lynn A director 4803 STONECROFT BOULEVARD CHANTILLY VA 20151
Marosvari Paul officer: VP, Chief Accounting Officer 8000 S. FEDERAL WAY BOISE ID 83716
Wright Mary Ann director 250 STEPHENSON HIGHWAY TROY MI 48083
Gomo Steven J director 495 E. JAVA DRIVE SUNNYVALE CA 94089
Mccarthy Mary Pat director 2704 WEST 112TH STREET LEAWOOD KS 66211
Bokan Michael W officer: SVP, WORLDWIDE SALES 8000 S FEDERAL WAY MS 1-557 BOISE ID 83716
Zinsner David officer: SVP & Chief Financial Officer 1001 MURPHY RANCH ROAD MILPITAS CA 95035
Bhatia Manish H officer: EVP, Global Operations C/O WESTERN DIGITAL CORPORATION 5601 GREAT OAKS PARKWAY SAN JOSE CA 95119
Sadana Sumit officer: EVP & Chief Business Officer 47544 AVALON HEIGHTS TERRACE FREMONT CA 94539
Mehrotra Sanjay officer: President & CEO C/O WESTERN DIGITAL CORPORATION 3355 MICHELSON DRIVE, SUITE 100 IRVINE CA 92612
Maddock Ernest E officer: CFO & VP, Finance LAM RESEARCH 4650 CUSHING PARKWAY FREMONT CA 94538

Micron Technology Headlines

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