Microchip Technology Incorporated (MCHP) Return on Invested Capital (ROIC): 3.11%
Is Microchip Technology Incorporated’s return on invested capital (ROIC) high or low?
Microchip Technology Incorporated's return on invested capital (ROIC) of 3.11% is 63% below its 5-year average of 8.51%, near the low end of its 5-year range (-0.03%–16.32%).
The return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP) is 3.11% as of Wednesday, June 10, 2026. It is above its 12-month average by 101.95% (1.54%).
MCHP Return on Invested Capital (ROIC) Chart
MCHP Average Return on Invested Capital (ROIC) Chart
MCHP Current vs Average Return on Invested Capital (ROIC) Chart
MCHP Return on Invested Capital (ROIC) Metrics
RETURN ON INVESTED CAPITAL (ROIC)
3.11%
RETURN ON INVESTED CAPITAL (ROIC) AVG TTM
1.54%
RETURN ON INVESTED CAPITAL (ROIC) AVG 3Y
8.45%
RETURN ON INVESTED CAPITAL (ROIC) AVG 5Y
8.51%
RETURN ON INVESTED CAPITAL (ROIC) AVG 10Y
6.74%
RETURN ON INVESTED CAPITAL (ROIC) AVG 15Y
8.03%
RETURN ON INVESTED CAPITAL (ROIC) AVG 20Y
8.85%
CURRENT VS TTM AVG
+101.95%
CURRENT VS 3Y AVG
-63.20%
CURRENT VS 5Y AVG
-63.45%
CURRENT VS 10Y AVG
-53.88%
CURRENT VS 15Y AVG
-61.26%
CURRENT VS 20Y AVG
-64.84%
MCHP Competitors' Return on Invested Capital (ROIC)
| NAME | MARKET CAP | RETURN ON INVESTED CAPITAL (ROIC) | TTM | 3Y | 5Y |
|---|---|---|---|---|---|
| Microchip Technology Incorporated (MCHP) | — | 3.11% | 1.54% | 8.45% | 8.51% |
| Block, Inc. (SQ) | $51.73B | -12.82% | -4.90% | -3.29% | -1.18% |
| ON Semiconductor Corporation (ON) | $42.96B | 6.24% | 9.06% | 13.87% | 12.29% |
| Teradyne, Inc. (TER) | $55.07B | 18.45% | 17.85% | 18.95% | 22.86% |
| Block, Inc. (XYZ) | $39.66B | 7.52% | 6.62% | 3.56% | 2.62% |
| Keysight Technologies, Inc. (KEYS) | $55.79B | 8.02% | 7.76% | 11.85% | 12.05% |
| Workday, Inc. (WDAY) | $36.73B | 5.95% | 4.34% | 1.95% | 0.28% |
| Hewlett Packard Enterprise Company (HPE) | $60.85B | -0.59% | 1.82% | 3.45% | 3.64% |
| ANSYS, Inc. (ANSS) | $32.91B | 8.09% | 8.16% | 8.14% | 8.35% |
| NetApp, Inc. (NTAP) | $31.83B | 19.40% | 17.95% | 16.76% | 15.95% |
Capital Efficiency
ROIC
3.1%
ROE
3.1%
Microchip Technology Incorporated Return on Invested Capital (ROIC) Formula & Definition
ROIC = NOPAT / Invested Capital
Return on invested capital measures the after-tax return a company earns on all capital (debt and equity) invested in the business.
Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute
Microchip Technology Incorporated Return on Invested Capital (ROIC) FAQ
- What is the return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP)?
- The return on invested capital (ROIC) for MCHP stock is 3.11%.
- Is Microchip Technology Incorporated's return on invested capital (ROIC) high or low?
- Microchip Technology Incorporated's return on invested capital (ROIC) of 3.11% is 63% below its 5-year average of 8.51%, near the low end of its 5-year range (-0.03%–16.32%).
- What is the TTM average return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP)?
- The TTM average return on invested capital (ROIC) for MCHP stock is 1.54%.
- What is the 3Y average return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP)?
- The 3Y average return on invested capital (ROIC) for MCHP stock is 8.45%.
- What is the 5Y average return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP)?
- The 5Y average return on invested capital (ROIC) for MCHP stock is 8.51%.
- What is the 10Y average return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP)?
- The 10Y average return on invested capital (ROIC) for MCHP stock is 6.74%.
- What is the 15Y average return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP)?
- The 15Y average return on invested capital (ROIC) for MCHP stock is 8.03%.
- What is the 20Y average return on invested capital (ROIC) for Microchip Technology Incorporated (MCHP)?
- The 20Y average return on invested capital (ROIC) for MCHP stock is 8.85%.
Microchip Technology Incorporated Return on Invested Capital (ROIC) History
| DATE | RETURN ON INVESTED CAPITAL (ROIC) |
|---|---|
| 2026-03-31 | 3.11% |
| 2025-03-31 | -0.03% |
| 2024-03-31 | 14.40% |
| 2023-03-31 | 16.32% |
| 2022-03-31 | 10.79% |
| 2021-03-31 | 6.47% |
| 2020-03-31 | 3.94% |
| 2019-03-31 | 4.12% |
| 2018-03-31 | 4.30% |
| 2017-03-31 | 3.93% |
| 2016-03-31 | 6.83% |
| 2015-03-31 | 9.61% |
| 2014-03-31 | 11.19% |
| 2013-03-31 | 4.26% |
| 2012-03-31 | 12.40% |
| 2011-03-31 | 16.81% |
| 2010-03-31 | 9.66% |
| 2009-03-31 | 10.30% |
| 2008-03-31 | 11.02% |
| 2007-03-31 | 15.38% |
| 2006-03-31 | 10.95% |
| 2005-03-31 | 12.81% |
| 2004-03-31 | 9.78% |
| 2003-03-31 | 7.95% |
| 2002-03-31 | 8.24% |
| 2001-03-31 | 13.72% |
| 2000-03-31 | 8.51% |
| 1999-03-31 | 5.59% |
| 1998-03-31 | 16.46% |
| 1997-03-31 | 15.56% |
Related Metrics
About Microchip Technology Incorporated
Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components. This extensive category encompasses power management, linear, high-voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), drivers, safety, security, USB, Ethernet, wireless, and other interface products. For compact device applications, the company supplies memory products such as serial EEPROM, serial and parallel flash, serial SRAM, and serial EERAM. A significant aspect of Microchip's business involves licensing its SuperFlash embedded flash and NVM technologies. These are provided to foundries, integrated device manufacturers, and design partners for use in manufacturing their own microcontrollers, gate arrays, RF, analog, and neuromorphic computing products that require integrated non-volatile memory. Moreover, Microchip delivers engineering services, along with wafer foundry, assembly, and test subcontracting manufacturing services. It also produces specialized timing systems, application-specific integrated circuits (ASICs), and aerospace products. Microchip Technology Incorporated was established in 1989 and is headquartered in Chandler, Arizona.
- Sector
- Technology
- Industry
- Semiconductors
- CEO
- Stephen Sanghi