Balance sheet analysis
Micron Technology’s total asset was $64.3 billion and $66.3 billion as of August 31, 2023 and September 1, 2022, respectively.
Property, plant, and equipment were $38 billion as of August 31, 2023, accounting for 59% of total assets.
The company had total current assets of $21.2 billion as of August 31, 2023, comprising 33% of total assets.
Cash and equivalents were $8.6 billion, short-term investments was $1 billion, receivables were $2.4 billion and inventories $8.4 billion as of August 31, 2023.
Total current liabilities were $4.77 billion as of August 31, 2023.
The current ratio was 4.4 times for fiscal 2023.
Total liabilities were $20 billion as of August 31, 2023.
The debt ratio was 31% for fiscal 2023.
Profitability analysis
Micron Technology’s revenue was $15.54 billion, $30.8 billion and $27.7 billion in fiscal 2023, 2022 and 2021, respectively.
The revenue in 2023 was down 49.5% year-on-year.
The revenue in 2022 was up 11.2% year-on-year.
The company’s gross margin was -$1.4 billion, $13.9 billion and $10.4 billion in fiscal 2023, 2022 and 2021, respectively.
Gross profit margin was -9%, 45% and 37.5% in 2023, 2022 and 2021, respectively.
Net income was -$5.8 billion, $8.69 billion and $5.86 billion in fiscal 2023, 2022 and 2021, respectively.
Asset management efficiency
As the revenue in 2023 plummeted, fixed assets turnover hit 0.4 times in 2023.
You could see that the amount of fixed assets was very huge, which be triggered by the company’ s business model.
Cash flow analysis
Net cash provided by operating activities was $1.56 billion, $15 billion and $12.5 billion in fiscal 2023, 2022 and 2021, respectively.
Expenditures for property, plant, and equipment were $7.7 billion, $12 billion and $10 billion in fiscal 2023, 2022 and 2021, respectively.
Micron Technology’s operating results for Q2 2024.
The revenue was $10.6 billion and $7.8 billion in the six months ended February 29, 2024 and the six months ended March 2, 2023, respectively.
Net Loss was $441 million and $2.5 billion for the six months ended February 29, 2024 and the six months ended March 2, 2023, respectively.
Net cash provided by operating activities was $2.6 billion and $1.3 billion n the six months ended February 29, 2024 and the six months ended March 2, 2023, respectively.
Expenditures for property, plant and equipment were $3.18 billion and $4.65 billion in the six months ended February 29, 2024 and the six months ended March 2, 2023, respectively.
Conclusion
Micron Technology’s capital expenditure has been very huge, and the company’s cash flow has been always ate up by capital expenditures.
The amount of repurchasing stock or paying dividends has been minimal.
The company have never made money, but earned fixed assets.
Disclaimer: The content is for reference only and does not constitute investment advice.
Introduction
We are an industry leader in innovative memory and storage solutions transforming how the world uses information to enrich life for all. With a relentless focus on our customers, technology leadership, and manufacturing and operational excellence, Micron delivers a rich portfolio of high-performance DRAM, NAND, and NOR memory and storage products through our Micron® and Crucial® brands. Every day, the innovations that our people create fuel the data economy, enabling advances in artificial intelligence and 5G applications that unleash opportunities — from the data center to the intelligent edge and across the client and mobile user experience.
We manufacture our products at wholly-owned facilities and also utilize subcontractors for certain manufacturing processes. Our global network of manufacturing centers of excellence not only allows us to benefit from scale while streamlining processes and operations, but it also brings together some of the world’s brightest talent to work on the most advanced memory technology. Centers of excellence bring expertise together in one location, providing an efficient support structure for end-to-end manufacturing, with quicker cycle times, in partnership with teams such as research and development (“R&D”), product engineering, human resources, procurement, and supply chain. For our locations in Singapore and Taiwan, this is also a combination of bringing fabrication and back-end manufacturing together. We make significant investments to develop proprietary product and process technology, which generally increases bit density per wafer and reduces per-bit manufacturing costs of each generation of product. We continue to introduce new generations of products that offer improved performance characteristics, including higher data transfer rates, advanced packaging solutions, lower power consumption, improved read/write reliability, and increased memory density.
We face intense competition in the semiconductor memory and storage markets and to remain competitive we must continuously develop and implement new products and technologies and decrease manufacturing costs in spite of ongoing inflationary cost pressures. Our success is largely dependent on obtaining returns on our R&D investments, efficient utilization of our manufacturing infrastructure, development and integration of advanced product and process technologies, market acceptance of our diversified portfolio of semiconductor-based memory and storage solutions, and efficient capital spending.
