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Microchip Technology (Microchip Technology) Debt-to-Equity

: 0.81 (As of Dec. 2023)
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Microchip Technology's Short-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $1,694 Mil. Microchip Technology's Long-Term Debt & Capital Lease Obligation for the quarter that ended in Dec. 2023 was $4,033 Mil. Microchip Technology's Total Stockholders Equity for the quarter that ended in Dec. 2023 was $7,080 Mil. Microchip Technology's debt to equity for the quarter that ended in Dec. 2023 was 0.81.

A high debt to equity ratio generally means that a company has been aggressive in financing its growth with debt. This can result in volatile earnings as a result of the additional interest expense.

The historical rank and industry rank for Microchip Technology's Debt-to-Equity or its related term are showing as below:

MCHP' s Debt-to-Equity Range Over the Past 10 Years
Min: 0.48   Med: 1.23   Max: 2.22
Current: 0.81

During the past 13 years, the highest Debt-to-Equity Ratio of Microchip Technology was 2.22. The lowest was 0.48. And the median was 1.23.

MCHP's Debt-to-Equity is ranked worse than
83.12% of 877 companies
in the Semiconductors industry
Industry Median: 0.26 vs MCHP: 0.81

Microchip Technology Debt-to-Equity Historical Data

The historical data trend for Microchip Technology's Debt-to-Equity 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.

* Premium members only.

Microchip Technology Annual Data
Trend Mar14 Mar15 Mar16 Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23
Debt-to-Equity
Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.95 1.72 1.70 1.33 1.01

Microchip Technology Quarterly Data
Mar19 Jun19 Sep19 Dec19 Mar20 Jun20 Sep20 Dec20 Mar21 Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23
Debt-to-Equity Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 1.05 1.01 0.89 0.88 0.81

Competitive Comparison

For the Semiconductors subindustry, Microchip Technology's Debt-to-Equity, along with its competitors' market caps and Debt-to-Equity 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 Debt-to-Equity Distribution

For the Semiconductors industry and Technology sector, Microchip Technology's Debt-to-Equity distribution charts can be found below:

* The bar in red indicates where Microchip Technology's Debt-to-Equity falls into.



Microchip Technology Debt-to-Equity Calculation

Debt to Equity measures the financial leverage a company has.

Microchip Technology's Debt to Equity Ratio for the fiscal year that ended in Mar. 2023 is calculated as

Microchip Technology's Debt to Equity Ratio for the quarter that ended in Dec. 2023 is calculated as

* 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  (NAS:MCHP) Debt-to-Equity Explanation

In the calculation of Debt to Equity, we use the total of Short-Term Debt & Capital Lease Obligation and Long-Term Debt & Capital Lease Obligation divided by Total Stockholders Equity. In some calculations, Total Liabilities is used to for calculation.


Be Aware

Because a company can increase its ROE % by having more financial leverage, it is important to watch the leverage ratio when investing in high ROE % companies.


Microchip Technology Debt-to-Equity Related Terms

Thank you for viewing the detailed overview of Microchip Technology's Debt-to-Equity provided by GuruFocus.com. Please click on the following links to see related term pages.


Microchip Technology (Microchip Technology) Business Description

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