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Cash to Debt Ratio measures the financial strength of a company. It is calculated as a company's cash, cash equivalents, and marketable securities divide by its debt. Microchip Technology's cash to debt ratio for the quarter that ended in Jun. 2026 was 0.05.
If Cash to Debt ratio is less than 1, the company cannot pay off its debt using the cash in hand. Here we can see, Microchip Technologycouldn't pay off its debt using the cash in hand for the quarter that ended in Jun. 2026.
The historical rank and industry rank for Microchip Technology's Cash-to-Debt or its related term are showing as below:
XSWX:MCHP'
s Cash-to-Debt Range Over the Past 10 Years
Min: 0.03 Med: 0.04 Max: 0.72
Current: 0.05
During the past 13 years, Microchip Technology's highest Cash to Debt Ratio was 0.72. The lowest was 0.03. And the median was 0.04.
XSWX:MCHP's Cash-to-Debt is ranked worse than 97% of 1032
companies
in the Semiconductors industry
Industry Median: 1.64
vs XSWX:MCHP: 0.05
If Cash to Debt ratio is greater than 1, the company can pay off its debt using the cash in hand. If it is smaller than 1, it means the company has more debt than the cash in hands. In this case, it is important to look the the company's Interest Coverage. Ben Graham requires that a company must have an Interest Coverage of at least 5.
Microchip Technology Cash-to-Debt Related Terms
Microchip Technology Cash-to-Debt Historical Data
* Premium members only.
The historical data trend for Microchip Technology's Cash-to-Debt 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.
Note: An indication of "No Debt" does not necessarily mean that the company has no debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.
XSWX:MCHP vs CBRS, CRDO, ALAB: Cash-to-Debt Comparison
For the Semiconductors subindustry, Microchip Technology's Cash-to-Debt, along with its competitors' market caps and Cash-to-Debt data, can be viewed below:
* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.
Microchip Technology Cash-to-Debt vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Cash-to-Debt distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Cash-to-Debt falls into.
* 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.
Microchip Technology (XSWX:MCHP) has a Cash-to-Debt of 0.05 as of Jun. 2026. This is 25% above median its historical median of 0.04. Over the past decade, Microchip Technology's Cash-to-Debt has ranged from 0.03 to 0.72. According to the industry distribution chart, Microchip Technology ranks #1001 out of 1032 companies in the Semiconductors industry, placing it in the top 97%.
Is Microchip Technology's Cash-to-Debt too high?
Microchip Technology's current Cash-to-Debt of 0.05 is 25% above median its 10-year median of 0.04. Over the past 10 years, this metric has ranged from a low of 0.03 to a high of 0.72. The Semiconductors industry median Cash-to-Debt is 1.64. Microchip Technology's value of 0.05 is 97% below this industry median. Based on the distribution chart, Microchip Technology ranks #1001 out of 1032 companies in the Semiconductors industry, which is in the bottom quartile relative to peers. Overall, Microchip Technology has a GF Score™ of 81/100, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Cash-to-Debt compare to CBRS and CRDO?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #1001 out of 1032 companies for Cash-to-Debt. This places Microchip Technology in the lower half of its industry. The industry median Cash-to-Debt is 1.64. Microchip Technology's value of 0.05 is 97% below this benchmark. Historically, Microchip Technology's own Cash-to-Debt has ranged from 0.03 to 0.72 over the past decade. While the company's 10-year median is 0.04 vs. the industry median of 1.64, Microchip Technology has consistently been below the industry average. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Cash-to-Debt for a Semiconductors company?
The median Cash-to-Debt among Semiconductors companies is 1.64, based on 1,032 companies in the industry. Companies in the top quartile (top 25%) have a Cash-to-Debt significantly above this median, while those in the bottom quartile fall well below. However, Cash-to-Debt should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Cash-to-Debt of 0.05 is 97% below the industry median. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Cash-to-Debt mean?
A high Cash-to-Debt can signal that a stock is expensive relative to its fundamentals. For the Semiconductors industry, the median Cash-to-Debt is 1.64 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Cash-to-Debt is 0.05, which is 25% above median its own 10-year median of 0.04. However, context matters — high-growth companies often justify higher valuations. Always evaluate alongside other metrics like GF Score™ and GF Value™.
Is Microchip Technology stock overvalued right now?
Microchip Technology (XSWX:MCHP) has a current Cash-to-Debt of 0.05. The stock's GF Value™ is CHF53.56, compared to a current price of CHF60.33 — trading 12.6% above its estimated fair value. The current Cash-to-Debt is 0.05, which is 25% above median its 10-year median of 0.04 and 97% below the Semiconductors industry median of 1.64. Microchip Technology's overall GF Score™ is 81/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Cash-to-Debt calculated?
Cash-to-Debt is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current Cash-to-Debt is 0.05 as of Jun. 2026. GuruFocus calculates this using data sourced from SEC filings and annual reports. See the calculation section and 30-year financial data on this page for the full breakdown.
Is Microchip Technology (XSWX:MCHP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of CHF60.33 is trading 12.6% above its estimated GF Value™ of CHF53.56.
Key valuation signals for XSWX:MCHP:
Cash-to-Debt: 0.05 (25% above median its 10-year median of 0.04)
GF Value™: CHF53.56 vs. price of CHF60.33 (12.6% above fair value)
Industry Position: 97% below the Semiconductors median (#1001 of 1032)
No single metric tells the full story. See the XSWX:MCHP stock analysis page for a complete view including 30-year financials, guru trades, and insider activity.
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.
81GF Score
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