Microchip Technology (Microchip Technology) Total Inventories

: $1,311 Mil (As of Dec. 2023)

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Microchip Technology's total inventories for the quarter that ended in Dec. 2023 was $1,311 Mil. Microchip Technology's average total inventories from the quarter that ended in Sep. 2023 to the quarter that ended in Dec. 2023 was $1,321 Mil.

In Ben Graham's calculation of Net-Net Working Capital, inventory is only considered worth half of its book value. Microchip Technology's Net-Net Working Capital per share for the quarter that ended in Dec. 2023 was $-13.11.

Days Inventory indicates the number of days of goods in sales that a company has in the inventory. Microchip Technology's Days Inventory for the three months ended in Dec. 2023 was 186.68.

Inventory Turnover measures how fast the company turns over its inventory within a year. Microchip Technology's Inventory Turnover for the quarter that ended in Dec. 2023 was 0.49.

Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue. Microchip Technology's Inventory-to-Revenue for the quarter that ended in Dec. 2023 was 0.75.

Microchip Technology Total Inventories Historical Data

The historical data trend for Microchip Technology's Total Inventories can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

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Microchip Technology Annual Data

Trend

Mar14

Mar15

Mar16

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Total Inventories

711.70

685.70

665.00

854.40

1,324.90

Microchip Technology Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Total Inventories																1,165.40	1,324.90	1,336.40	1,330.90	1,311.10

Microchip Technology Total Inventories Calculation

Total Inventories includes the raw materials, work-in-process goods and completely finished goods of a company. It is a portion of a company's current assets.

Microchip Technology (NAS:MCHP) Total Inventories Explanation

Inventory control is an important part of business operation. If a company does not have enough inventory, it may not be able to meet customers' required delivery time. If it has too much inventory, the cost of holding the inventory can be high.

1. In Ben Graham's calculation of Net-Net Working Capital (NNWC), inventory is only considered worth half of its book value.

Microchip Technology's Net-Net Working Capital Per Share for the quarter that ended in Dec. 2023 is

	Net-Net Working Capital Per Share (Q: Dec. 2023 )
=	(Cash And Cash Equivalents	+	0.75 * Accounts Receivable	+	0.5 * Total Inventories	-	Total Liabilities
-	Preferred Stock	-	Minority Interest)	/	Shares Outstanding (EOP)
=	(281	+	0.75 * 1392.6	+	0.5 * 1311.1	-	9062.8
-	0	-	0)	/	540.388
=	-13.11

2. Days Inventory indicates the number of days of goods in sales that a company has in the inventory.

Microchip Technology's Days Inventory for the three months ended in Dec. 2023 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Dec. 2023 )	/	Cost of Goods Sold (Q: Dec. 2023 )	*	Days in Period
	=	1321	/	645.7	*	365 / 4
	=	186.68

3. Inventory Turnover measures how fast the company turns over its inventory within a year.

Microchip Technology's Inventory Turnover for the quarter that ended in Dec. 2023 is calculated as

Inventory Turnover	=	Cost of Goods Sold (Q: Dec. 2023 )	/	Average Total Inventories (Q: Dec. 2023 )
	=	645.7	/	1321
	=	0.49

4. Inventory-to-Revenue determines the ability of a company to manage their inventory levels. It measures the percentage of Inventories the company currently has on hand to support the current amount of Revenue.

Microchip Technology's Inventory to Revenue for the quarter that ended in Dec. 2023 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Dec. 2023 )	/	Revenue (Q: Dec. 2023 )
	=	1321	/	1765.7
	=	0.75

Be Aware

Manufacturers with durable competitive advantages have the advantage that the products they sell do not change, and therefore will never become obsolete. Buffett likes this advantage.

When identifying manufacturers with durable competitive advantage, look for inventory and net earnings that rise correspondingly. This indicates that the company is finding profitable ways to increase sales which called for an increase in inventory.

Manufacturers with inventories that spike up and down are indicative of competitive industries subject to boom and bust.

Microchip Technology Total Inventories Related Terms

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Microchip Technology (Microchip Technology) Business Description

Industry

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Traded in Other Exchanges

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Address

2355 West Chandler Boulevard, Chandler, AZ, USA, 85224-6199

Website

https://www.microchip.com

Microchip Technology became an independent company in 1989 when it was spun off from General Instrument. More than half of revenue comes from MCUs, which are used in a wide array of electronic devices from remote controls to garage door openers to power windows in autos. The company's strength lies in lower-end 8-bit MCUs that are suitable for a wider range of less technologically advanced devices, but the firm has expanded its presence in higher-end MCUs and analog chips as well.

Executives

James Eric Bjornholt	officer: VP and CFO	MICROCHIP TECHNOLOGY INCORPORATED, 2355 WEST CHANDLER BOULEVARD, CHANDLER AZ 85224-6199
Karlton D Johnson	director	C/O MICROCHIP TECHNOLOGY INCORPORATED, 2355 W. CHANDLER BOULEVARD, CHANDLER AZ 85224-6199
Matthew W Chapman	director	400 SW SIXTH AVENUE, SUITE 200, PORTLAND OR 97204
Robert A. Rango	director	5300 CALIFORNIA AVENUE, IRVINE CA 92617
Richard J Simoncic	officer: VP, Microperipheral Prod Div	2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Mitchell R Little	officer: VP, WW Sales and Appns.	2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Ganesh Moorthy	officer: VP, MCU and Auto. Div.	MICROCHIP, 2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Steve Sanghi	director, officer: President, CEO, Chairman	2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Wade F Meyercord	director	2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Stephen V Drehobl	officer: VP, Security, MCU & Tech Div.
L B Day	director	2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
Karen Marie Rapp	director	C/O NATIONAL INSTRUMENTS CORPORATION, 11500 NORTH MOPAC, AUSTIN TX 78759
Esther Johnson	director	8731 S 600 W, CLAYPOOL IN 46510
Hugo Martinez Albert J	director	2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199
David S Lambert	officer: VP, Fab Operations	2355 W CHANDLER BLVD, CHANDLER AZ 85224-6199