Microchip Technology (XSWX:MCHP) Inventory Turnover: 0.49 (As of Mar. 2026)

What is Microchip Technology Inventory Turnover?

Microchip Technology XSWX:MCHP -5.20% 48 Inventory Turnover is 0.49 as of Mar. 2026. GuruFocus rates XSWX:MCHP with a GF Score™ of 48/100 and a GF Value™ of CHF48.07 (Significantly Overvalued). The stock has 6 warning signs investors should review.

Inventory Turnover measures how fast the company turns over its inventory within a year. It is calculated as Cost of Goods Sold divided by Total Inventories. Microchip Technology's Cost of Goods Sold for the three months ended in Mar. 2026 was CHF403 Mil. Microchip Technology's Average Total Inventories for the quarter that ended in Mar. 2026 was CHF829 Mil. Microchip Technology's Inventory Turnover for the quarter that ended in Mar. 2026 was 0.49.

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 Mar. 2026 was 187.81.

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 Mar. 2026 was 0.80.

Microchip Technology (XSWX:MCHP) Inventory Turnover Explanation

Inventory Turnover measures how fast the company turns over its inventory within a year. A higher Inventory Turnover means the company has light inventory. Therefore the company spends less money on storage, write downs, and obsolete inventory. If the inventory is too light, it may affect sales because the company may not have enough to meet demand.

1. 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 Mar. 2026 is calculated as:

Days Inventory	=	Average Total Inventories (Q: Mar. 2026 )	/	Cost of Goods Sold (Q: Mar. 2026 )	*	Days in Period
	=	829.0255	/	402.783	*	365 / 4
	=	187.81

2. 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 Mar. 2026 is calculated as

Inventory-to-Revenue	=	Average Total Inventories (Q: Mar. 2026 )	/	Revenue (Q: Mar. 2026 )
	=	829.0255	/	1032.308
	=	0.80

* 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.

Be Aware

Usually retailers pile up their inventories at holiday seasons to meet the stronger demand. Therefore, the inventory of a particular quarter of a year should not be used to calculate Inventory Turnover. An average inventory is a better indication.

Microchip Technology Inventory Turnover Related Terms

Microchip Technology Inventory Turnover Historical Data

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The historical data trend for Microchip Technology's Inventory Turnover can be seen below:

Microchip Technology Inventory Turnover Chart

Microchip Technology Annual Data

Trend

Mar17

Mar18

Mar19

Mar20

Mar21

Mar22

Mar23

Mar24

Mar25

Mar26

Inventory Turnover

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3.12

2.51

1.96

1.48

1.60

Microchip Technology Quarterly Data
	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23	Mar24	Jun24	Sep24	Dec24	Mar25	Jun25	Sep25	Dec25	Mar26
Inventory Turnover	Get a 7-Day Free Trial															0.35	0.39	0.44	0.45	0.49

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Microchip Technology Inc XSWX:MCHP

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Microchip Technology Inventory Turnover Calculation

Microchip Technology's Inventory Turnover for the fiscal year that ended in Mar. 2026 is calculated as

	Inventory Turnover (A: Mar. 2026 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (A: Mar. 2026 )	/ (	(Total Inventories (A: Mar. 2025 )	+	Total Inventories (A: Mar. 2026 ))	/	count )
=	1568.302	/ (	(1142.937	+	815.17)	/	2 )
=	1568.302	/	979.0535
=	1.60

Microchip Technology's Inventory Turnover for the quarter that ended in Mar. 2026 is calculated as

	Inventory Turnover (Q: Mar. 2026 )
=	Cost of Goods Sold	/	Average Total Inventories
=	Cost of Goods Sold (Q: Mar. 2026 )	/ (	(Total Inventories (Q: Dec. 2025 )	+	Total Inventories (Q: Mar. 2026 ))	/	count )
=	402.783	/ (	(842.881	+	815.17)	/	2 )
=	402.783	/	829.0255
=	0.49

Frequently Asked Questions Learn more about Inventory Turnover →

What does a Inventory Turnover of 0.49 mean?

Microchip Technology (XSWX:MCHP) has a Inventory Turnover of 0.49 as of Mar. 2026. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Microchip Technology and its competitors.

Is Microchip Technology's Inventory Turnover too high?

Microchip Technology's current Inventory Turnover is 0.49. 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 Inventory Turnover compare to CRDO and GFS?

Microchip Technology's Inventory Turnover of 0.49 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 Inventory Turnover for a Semiconductors company?

A good Inventory Turnover depends on the Semiconductors industry context. However, Inventory Turnover 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 Inventory Turnover mean?

A high Inventory Turnover can signal that a stock is expensive relative to its fundamentals. Inventory turnover equals current-period cost of goods sold divided by average two-period total inventories. View historical data on Microchip Technology and its competitors. Microchip Technology's current Inventory Turnover is 0.49. 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 CHF48.07, compared to a current price of CHF72.24 — trading 50.3% above its estimated fair value. The current Inventory Turnover is 0.49. 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 Inventory Turnover calculated?

Inventory Turnover is calculated from a company's financial statements. For Microchip Technology (XSWX:MCHP), the current Inventory Turnover is 0.49 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 CHF72.24 is trading 50.3% above its estimated GF Value™ of CHF48.07. GuruFocus considers Microchip Technology to be Significantly Overvalued.

Key valuation signals for XSWX:MCHP:

Inventory Turnover: 0.49
GF Value™: CHF48.07 vs. price of CHF72.24 (50.3% 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

Industry Technology Semiconductors

Comparable Companies CRDO GFS CBRS ON MPWR ALAB MTSI NXPI LSCC SITM NVDA TPE:2330 AVGO MU XKRX:000660 AMD INTC TSE:285A TXN MRVL

Other Exchanges MCHP:USA MCHP:Mexico 1MCHP:Italy 0K19:UK MCP:Germany M1CH34:Brazil MCHP:Austria

Address 2355 W. 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.

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