MCHPNEUTRAL

MCHP Return on Equity (ROE) Analysis

7.2%

Updated 222h ago·SEC filings & market data

Key Takeaway

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, so 7.2% means MCHP earns 7.2 cents per dollar of invested equity.

Sector Performance

28th percentile

MCHP

7.2%

Sector Median

13.3%

Sector Avg

16.9%

Prior Period

3.4%(Aug 2026)

↑ Improving

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Deep Analysis

Return on equity (ROE) measures how much profit a company generates for each dollar of shareholder equity, so 7.2% means MCHP earns 7.2 cents per dollar of invested equity.

This sits below the sector median of 13.6%, placing the company in the 27th percentile among its peers. The metric's overall trend is marked as N/A, with a year-over-year change also N/A, but the quarter-over-quarter change is +111.8%, and historical values show a jump from 3.4% to 7.2%. The combination of a below-median level with a strong recent quarterly increase implies an investment risk from lagging profitability, yet a potential opportunity if the improvement endures. This ROE level alone underperforms the sector, but the positive momentum tempers the downside. On balance, the metric supports the overall NEUTRAL verdict, as weak relative performance is offset by the recent upward trend.

Frequently Asked Questions

What does the Return on Equity (ROE) tell investors about MCHP?

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.

How is the Return on Equity (ROE) calculated?

Return on Equity (ROE) is calculated as: Net Income / Shareholders' Equity.

Who are MCHP's closest peers by Return on Equity (ROE)?

The closest peers by Return on Equity (ROE) include: LOW (-67.1%), MAR (-69.0%), BMBL (-76.9%), WBA (-82.7%), NIO (-84.0%).

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Learn More About Return on Equity (ROE)

What Is Return on Equity (ROE) and Is Higher Always Better?

Return on equity ROE measures how efficiently a company generates profit from shareholder capital. Learn how to decompose ROE using DuPont analysis and why high leverage can make it dangerous—with Apple and JPMorgan examples.

The Formula

Net Income / Shareholders' Equity

Why It Matters

ROE measures how effectively management turns equity into profit. Consistently above 15% is typically considered strong. Negative equity distorts this metric.