Micron Technology Profitability Analysis

MU Stock  USD 119.25  0.45  0.38%   
Based on the key profitability measurements obtained from Micron Technology's financial statements, Micron Technology may not be well positioned to generate adequate gross income at this time. It has a very high probability of underperforming in April. Profitability indicators assess Micron Technology's ability to earn profits and add value for shareholders.
 
Net Loss  
First Reported
1988-11-30
Previous Quarter
-1.2 B
Current Value
793 M
Quarterly Volatility
941.4 M
 
Oil Shock
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, Micron Technology's Price To Sales Ratio is comparatively stable compared to the past year. Days Of Sales Outstanding is likely to gain to 73.14 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.09 in 2024. At this time, Micron Technology's Non Operating Income Net Other is comparatively stable compared to the past year. Interest Income is likely to gain to about 565.1 M in 2024, despite the fact that Income Before Tax is likely to grow to (6.2 B).
For Micron Technology profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Micron Technology to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Micron Technology utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Micron Technology's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Micron Technology over time as well as its relative position and ranking within its peers.
  
Check out Correlation Analysis.
For more information on how to buy Micron Stock please use our How to Invest in Micron Technology guide.
Is Micron Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Micron Technology. If investors know Micron will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Micron Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.43)
Dividend Share
0.46
Earnings Share
(3.45)
Revenue Per Share
16.67
Quarterly Revenue Growth
0.577
The market value of Micron Technology is measured differently than its book value, which is the value of Micron that is recorded on the company's balance sheet. Investors also form their own opinion of Micron Technology's value that differs from its market value or its book value, called intrinsic value, which is Micron Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Micron Technology's market value can be influenced by many factors that don't directly affect Micron Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Micron Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Micron Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Micron Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

Micron Technology Net Income vs. Working Capital Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining Micron Technology's current stock value. Our valuation model uses many indicators to compare Micron Technology value to that of its competitors to determine the firm's financial worth.
Micron Technology is considered to be number one stock in working capital category among related companies. It is considered to be number one stock in net income category among related companies . At this time, Micron Technology's Net Loss is comparatively stable compared to the past year.. Comparative valuation analysis is a catch-all model that can be used if you cannot value Micron Technology by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Micron Technology's Stock . Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Micron Technology's earnings, one of the primary drivers of an investment's value.

Micron Net Income vs. Working Capital

Working Capital is a measure of company efficiency and operating liquidity. The working capital is usually calculated by subtracting Current Liabilities from Current Assets. It is an important indicator of the firm ability to continue its normal operations without additional debt obligations. .

Micron Technology

Working Capital

 = 

Current Assets

-

Current Liabilities

 = 
16.48 B
Working Capital can be positive or negative, depending on how much of current debt the company is carrying on its balance sheet. In general terms, companies that have a lot of working capital will experience more growth in the near future since they can expand and improve their operations using existing resources. On the other hand, companies with small or negative working capital may lack the funds necessary for growth or future operation. Working Capital also shows if the company has sufficient liquid resources to satisfy short-term liabilities and operational expenses.
Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

Micron Technology

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
(5.83 B)
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.

Micron Net Income Comparison

Micron Technology is currently under evaluation in net income category among related companies.

Micron Technology Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in Micron Technology, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Micron Technology will eventually generate negative long term returns. The profitability progress is the general direction of Micron Technology's change in net profit over the period of time. It can combine multiple indicators of Micron Technology, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for 2024
Accumulated Other Comprehensive Income-358.8 M-340.9 M
Operating Income-6.6 B-6.3 B
Income Before Tax-6.5 B-6.2 B
Total Other Income Expense Net-147.6 M-140.2 M
Net Loss-6.7 B-6.4 B
Income Tax Expense203.6 M141.7 M
Net Loss-6.7 B-6.4 B
Net Loss-6.7 B-6.4 B
Non Operating Income Net Other55.8 M92.1 M
Interest Income538.2 M565.1 M
Net Interest Income92 M96.6 M
Change To Netincome2.9 B3.1 B
Net Income Per E B T 0.93  0.70 

Micron Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on Micron Technology. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Micron Technology position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Micron Technology's important profitability drivers and their relationship over time.

Micron Technology Profitability Trends

Micron Technology profitability trend refers to the progression of profit or loss within a business. An upward trend means that Micron Technology's profit has generally increased over time, and a downward profitability trend means profits are declining. Recognizing problems early in profitability trends allows investors to address revenue and cost issues in advance. Investors and analysts usually monitor three types of profitability trends: gross, operating, and net. Gross profit is the difference between revenue and costs of goods sold. Operating profit is Micron Technology's gross profit minus its overhead. After you account for other unusual revenue, expenses, and costs, you get net profit. Gross profit trends are often a good indicator of future profitability. If you have high gross profit margins, you have a better chance to cover overhead and make money.

Micron Technology Profitability Drivers Correlations

One of the toughest challenges investors face today is learning how to quickly synthesize and read into endless financial statements and information provided by the company, SEC reporting, and various external parties. Understanding the correlation between Micron Technology different financial indicators related to revenue and profit generation helps investors identify and prioritize their investing strategies towards Micron Technology in a much-optimized way. Analyzing correlations between profit drivers that are directly associated with dollar figures is the most effective way to break down Micron Technology's future profitability.

Use Micron Technology in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Micron Technology position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Micron Technology will appreciate offsetting losses from the drop in the long position's value.

Micron Technology Pair Trading

Micron Technology Pair Trading Analysis

The ability to find closely correlated positions to Micron Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Micron Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Micron Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Micron Technology to buy it.
The correlation of Micron Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Micron Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Micron Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Micron Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

Use Investing Themes to Complement your Micron Technology position

In addition to having Micron Technology in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.

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Small Value Funds
Small Value Funds Theme
Funds or Etfs that invest in the undervalued stocks of small to mid-sized companies. The Small Value Funds theme has 34 constituents at this time.
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When determining whether Micron Technology is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Micron Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Micron Technology Stock. Highlighted below are key reports to facilitate an investment decision about Micron Technology Stock:
Check out Correlation Analysis.
For more information on how to buy Micron Stock please use our How to Invest in Micron Technology guide.
You can also try the Premium Stories module to follow Macroaxis premium stories from verified contributors across different equity types, categories and coverage scope.

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When running Micron Technology's price analysis, check to measure Micron Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Micron Technology is operating at the current time. Most of Micron Technology's value examination focuses on studying past and present price action to predict the probability of Micron Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Micron Technology's price. Additionally, you may evaluate how the addition of Micron Technology to your portfolios can decrease your overall portfolio volatility.
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To fully project Micron Technology's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Micron Technology at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Micron Technology's income statement, its balance sheet, and the statement of cash flows.
Potential Micron Technology investors and stakeholders can use historical trends found within financial statements to determine how well the company is positioned for the future. Although Micron Technology investors may work on each financial statement separately, they are all related. The changes in Micron Technology's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Micron Technology's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages.