MCHPNEUTRAL

Gross Margin

61.0%

Updated 104h ago

Sector Performance

74th percentile

MCHP

61.0%

Sector Median

44.7%

Sector Avg

45.2%

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Deep Analysis

Gross margin measures the percentage of revenue left after subtracting the cost of goods sold, showing how efficiently a company produces its products.

At 61.0%, MCHP's gross margin is above the sector median of 44.2%, placing it in the 74th percentile among peers. The year-over-year change is not available (N/A), but the quarter-over-quarter change shows a decline of -17.3%, from 73.8% to 61.0% – the only two historical values provided. A high gross margin relative to peers indicates pricing power or cost advantages, but the sharp recent drop introduces uncertainty about whether that advantage is eroding. This combination of a strong level with a negative trend suggests a potential risk if the decline continues, while the current level still offers a buffer. The metric supports the overall NEUTRAL verdict: the above-average margin is a positive, but the recent deterioration prevents a clearly bullish or bearish signal.

Frequently Asked Questions

What does the Gross Margin tell investors about MCHP?

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.

How is the Gross Margin calculated?

Gross Margin is calculated as: Gross Profit / Revenue.

Who are MCHP's closest peers by Gross Margin?

The closest peers by Gross Margin include: WHR (12.7%), JBHT (12.6%), DVN (12.1%), F (11.9%), GM (11.5%).

The Formula

Gross Profit / Revenue

Why It Matters

Gross margin reveals pricing power and cost structure. Software companies often sustain 70–80%; manufacturers typically 30–50%. Expansion is a bullish signal.