Microchip Technology (XSWX:MCHP) Effective Interest Rate on Debt %: 3.62% (As of Mar. 2026)


XSWX:MCHP Microchip Technology Inc XSWX:MCHP
48 GF Score
Price CHF71.38
GF Value CHF45.87
Valuation Significantly Overvalued
! 6 Warning Signs
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What is Microchip Technology Effective Interest Rate on Debt %?

Microchip Technology XSWX:MCHP +3.15% 48 Effective Interest Rate on Debt % is 3.62% as of Mar. 2026. GuruFocus rates XSWX:MCHP with a GF Score™ of 48/100 and a GF Value™ of CHF45.87 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Effective Interest Rate on Debt % is the usage rate that a borrower actually pays on a debt. It is calculated as the positive value of Interest Expense divided by its average total debt. Total debt equals to Long-Term Debt & Capital Lease Obligation plus Short-Term Debt & Capital Lease Obligation. Microchip Technology's annualized positive value of Interest Expense for the quarter that ended in Mar. 2026 was CHF157 Mil. Microchip Technology's average total debt for the quarter that ended in Mar. 2026 was CHF4,332 Mil. Therefore, Microchip Technology's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 was 3.62%.


Microchip Technology  (XSWX:MCHP) Effective Interest Rate on Debt % Explanation

Effective Interest Rate on Debt % measures the usage rate that a borrower actually pays on a debt.


Microchip Technology Effective Interest Rate on Debt % Related Terms


Microchip Technology Effective Interest Rate on Debt % Historical Data

* Premium members only.

The historical data trend for Microchip Technology's Effective Interest Rate on 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.

Microchip Technology Effective Interest Rate on Debt % Chart

Microchip Technology Annual Data
Trend Mar17 Mar18 Mar19 Mar20 Mar21 Mar22 Mar23 Mar24 Mar25 Mar26
Effective Interest Rate on Debt %
Get a 7-Day Free Trial Premium Member Only Premium Member Only 2.95 2.73 2.99 4.29 3.62

Microchip Technology Quarterly Data
Jun21 Sep21 Dec21 Mar22 Jun22 Sep22 Dec22 Mar23 Jun23 Sep23 Dec23 Mar24 Jun24 Sep24 Dec24 Mar25 Jun25 Sep25 Dec25 Mar26
Effective Interest Rate on Debt % Get a 7-Day Free Trial 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 4.34 3.85 3.99 4.04 3.62

XSWX:MCHP vs CRDO, GFS, CBRS: Effective Interest Rate on Debt % Comparison

For the Semiconductors subindustry, Microchip Technology's Effective Interest Rate on Debt %, along with its competitors' market caps and Effective Interest Rate on 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 Effective Interest Rate on Debt % vs Semiconductors Industry

For the Semiconductors industry and Technology sector, Microchip Technology's Effective Interest Rate on Debt % distribution charts can be found below:

* The bar in red indicates where Microchip Technology's Effective Interest Rate on Debt % falls into.


XSWX:MCHP
48GF Score
Microchip Technology Inc XSWX:MCHP
Effective Interest Rate on Debt % is just one metric. See GF Score™, valuation, warning signs, and more.
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Microchip Technology Effective Interest Rate on Debt % Calculation

Microchip Technology's annualized Effective Interest Rate on Debt % for the fiscal year that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (A: Mar. 2025 )+Total Debt  (A: Mar. 2026 ))/ count )
=-1  *  -169.584/( (5006.566+4357.863)/ 2 )
=-1  *  -169.584/4682.2145
=3.62 %

where

Total Debt  (A: Mar. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=4975.021 + 31.545
=5006.566

Total Debt  (A: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=4327.316 + 30.547
=4357.863

Microchip Technology's annualized Effective Interest Rate on Debt % for the quarter that ended in Mar. 2026 is calculated as

Effective Interest Rate on Debt %
=-1  *  Interest Expense/( (Total Debt  (Q: Dec. 2025 )+Total Debt  (Q: Mar. 2026 ))/ count )
=-1  *  -156.832/( (4306.925+4357.863)/ 2 )
=-1  *  -156.832/4332.394
=3.62 %

where

Total Debt  (Q: Dec. 2025 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=4276.165 + 30.76
=4306.925

Total Debt  (Q: Mar. 2026 )
=Long-Term Debt & Capital Lease Obligation + Short-Term Debt & Capital Lease Obligation
=4327.316 + 30.547
=4357.863

* 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.

In the calculation of annual Effective Interest Rate on Debt %, the Interest Expense of the last fiscal year and the average total debt over the fiscal year are used. In calculating the quarterly data, the Interest Expense data used here is four times the quarterly (Mar. 2026) interest expense data. Effective Interest Rate on Debt % is displayed in the 30-year financial page.

What does a Effective Interest Rate on Debt % of 3.62% mean?
Microchip Technology (XSWX:MCHP) has a Effective Interest Rate on Debt % of 3.62% as of Mar. 2026. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Microchip Technology and its competitors.
Is Microchip Technology's Effective Interest Rate on Debt % too high?
Microchip Technology's current Effective Interest Rate on Debt % is 3.62%. Overall, Microchip Technology has a GF Score™ of 48/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Effective Interest Rate on Debt % compare to CRDO and GFS?
Microchip Technology's Effective Interest Rate on Debt % of 3.62% can be compared against companies in the Semiconductors industry. See the competitive comparison table and distribution chart on this page for a detailed peer-by-peer breakdown.
What is a good Effective Interest Rate on Debt % for a Semiconductors company?
A good Effective Interest Rate on Debt % depends on the Semiconductors industry context. However, Effective Interest Rate on Debt % should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Use the industry distribution chart on this page to see where any company falls relative to its peers.
What does a high Effective Interest Rate on Debt % mean?
A high Effective Interest Rate on Debt % can signal that a stock is expensive relative to its fundamentals. Effective interest rate on debt is the rate a company actually pays on its debt. View historical data on Microchip Technology and its competitors. Microchip Technology's current Effective Interest Rate on Debt % is 3.62%. 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?
Based on GuruFocus' analysis, Microchip Technology (XSWX:MCHP) is currently considered Significantly Overvalued. The stock's GF Value™ is CHF45.87, compared to a current price of CHF71.38 — trading 55.6% above its estimated fair value. The current Effective Interest Rate on Debt % is 3.62%. Microchip Technology's overall GF Score™ is 48/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Effective Interest Rate on Debt % calculated?
Effective Interest Rate on Debt % is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current Effective Interest Rate on Debt % is 3.62% as of Mar. 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 CHF71.38 is trading 55.6% above its estimated GF Value™ of CHF45.87. GuruFocus considers Microchip Technology to be Significantly Overvalued.

Key valuation signals for XSWX:MCHP:

  • Effective Interest Rate on Debt %: 3.62%
  • GF Value™: CHF45.87 vs. price of CHF71.38 (55.6% above fair value)
  • GF Score™: 48/100 with 6 warning signs

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 Business Description

Address 2355 W. 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.
48GF Score

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Effective Interest Rate on Debt % is just one metric. See GF Value™, 30-year financials, guru trades, warning signs, and more.

CHF71.38
Price
CHF45.87
GF Value