GURUFOCUS.COM » STOCK LIST » Technology » Semiconductors » Microchip Technology Inc (BSP:M1CH34) » Definitions » 3-Year RORE %

Microchip Technology (BSP:M1CH34) 3-Year RORE % : 38.20% (As of Dec. 2023)


View and export this data going back to 2019. Start your Free Trial

What is Microchip Technology 3-Year RORE %?

Return on Retained Earnings (RORE) is an indicator of a company's growth potential, it shows how much a company earns by reinvesting its retained earnings, i.e. profits after dividend payments. Microchip Technology's 3-Year RORE % for the quarter that ended in Dec. 2023 was 38.20%.

The industry rank for Microchip Technology's 3-Year RORE % or its related term are showing as below:

BSP:M1CH34's 3-Year RORE % is ranked better than
81.84% of 914 companies
in the Semiconductors industry
Industry Median: -6.4 vs BSP:M1CH34: 38.20

Microchip Technology 3-Year RORE % Historical Data

The historical data trend for Microchip Technology's 3-Year RORE % 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.

Microchip Technology 3-Year RORE % Chart

Microchip Technology Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
3-Year RORE %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 33.76 38.44 11.97 67.95 82.40

Microchip Technology Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
3-Year RORE % Get a 7-Day Free Trial 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 90.70 82.40 71.31 58.66 38.20

Competitive Comparison of Microchip Technology's 3-Year RORE %

For the Semiconductors subindustry, Microchip Technology's 3-Year RORE %, along with its competitors' market caps and 3-Year RORE % 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's 3-Year RORE % Distribution in the Semiconductors Industry

For the Semiconductors industry and Technology sector, Microchip Technology's 3-Year RORE % distribution charts can be found below:

* The bar in red indicates where Microchip Technology's 3-Year RORE % falls into.



Microchip Technology 3-Year RORE % Calculation

Microchip Technology's 3-Year RORE % for the quarter that ended in Dec. 2023 is calculated as:

3-Year RORE %=( Most Recent EPS (Diluted)- First Period EPS (Diluted) )/( Cumulative EPS (Diluted) for 3-year -Cumulative Dividends per Share for 3-year )
=( 10.649-4.597 )/( 24.73-8.888 )
=6.052/15.842
=38.20 %

* 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 3-Year RORE %, the most recent and first period EPS (Diluted) is the trailing twelve months (TTM) data ended in Dec. 2023 and 3-year before.


Microchip Technology  (BSP:M1CH34) 3-Year RORE % Explanation

Return on Retained Earnings (RORE) is important to investors because it reveals a company's efficiency and growth potential. A higher RORE indicates a higher return. A high RORE indicates that the company should reinvest profits into the business. A lower RORE suggests that the company should distribute profits to shareholders by paying out dividends, since those dollars aren't generating much additional growth for the company.

There are a several different ways to arrive at the Return on Retained Earnings. The simplest way to calculate it is by using published information on Earnings per Share (EPS) and Dividend per Share (DPS) over a selected period. Here, 3-year period is chosen.

Be Aware

Please keep in mind that the RORE is relative to the nature of the business and its competitors. If another company in the same sector is producing a lower return on retained earnings, it doesn’t necessarily mean it’s a bad investment. It may just suggest the company is older and no longer in a high growth stage. At such a stage in the business cycle, it would be expected to see a lower RORE and higher dividend payout.


Microchip Technology 3-Year RORE % Related Terms

Thank you for viewing the detailed overview of Microchip Technology's 3-Year RORE % provided by GuruFocus.com. Please click on the following links to see related term pages.


Microchip Technology (BSP:M1CH34) Business Description

Traded in Other Exchanges
Address
2355 West Chandler Boulevard, Chandler, AZ, USA, 85224-6199
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.

Microchip Technology (BSP:M1CH34) Headlines

No Headlines