Microchip TechnologyFRA:MCP -4.53%71 Quick Ratio is 1.18 as of Mar. 2026, which is 13% above its 10-year median of 1.04. GuruFocus rates FRA:MCP with a GF Score™ of 71/100 and a GF Value™ of €53.71 (Significantly Overvalued). The stock has 6 warning signs investors should review. Among 1,028 Semiconductors companies, Microchip Technology ranks worse than 69.16% on this metric.
Microchip Technology has a quick ratio of 1.18. It generally indicates good short-term financial strength.
The historical rank and industry rank for Microchip Technology's Quick Ratio or its related term are showing as below:
FRA:MCP'
s Quick Ratio Range Over the Past 10 Years
Min: 0.56 Med: 1.04 Max: 2.68
Current: 1.18
During the past 13 years, Microchip Technology's highest Quick Ratio was 2.68. The lowest was 0.56. And the median was 1.04.
FRA:MCP's Quick Ratio is ranked worse than 69.16% of 1028
companies
in the Semiconductors industry
Industry Median: 1.85
vs FRA:MCP: 1.18
Microchip Technology (FRA:MCP) Quick Ratio Explanation
The quick ratio is more conservative than the Current Ratio because it excludes inventories from current assets. The ratio derives its name presumably from the fact that assets such as cash and marketable securities are quick sources of cash. Inventories generally take time to be converted into cash, and if they have to be sold quickly, the company may have to accept a lower price than book value of these inventories. As a result, they are justifiably excluded from assets that are ready sources of immediate cash.
In general, low or decreasing quick ratios generally suggest that a company is over-leveraged, struggling to maintain or grow sales, paying bills too quickly or collecting receivables too slowly. On the other hand, a high or increasing quick ratio generally indicates that a company is experiencing solid top-line growth, quickly converting receivables into cash, and easily able to cover its financial obligations. Such companies often have faster inventory turnover and cash conversion cycles.
The higher the quick ratio, the better the company's liquidity position.
Microchip Technology Quick Ratio Related Terms
Microchip Technology Quick Ratio Historical Data
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The historical data trend for Microchip Technology's Quick Ratio 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.
For the Semiconductors subindustry, Microchip Technology's Quick Ratio, along with its competitors' market caps and Quick Ratio 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 Quick Ratio vs Semiconductors Industry
For the Semiconductors industry and Technology sector, Microchip Technology's Quick Ratio distribution charts can be found below:
* The bar in red indicates where Microchip Technology's Quick Ratio falls into.
The quick ratio measures a company's ability to meet its short-term obligations with its most liquid assets. For this reason, the ratio excludes inventories from current assets.
Microchip Technology's Quick Ratio for the fiscal year that ended in Mar. 2026 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 (FRA:MCP) has a Quick Ratio of 1.18 as of Mar. 2026. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Microchip Technology and its competitors. This is 13% above median its historical median of 1.04. Over the past decade, Microchip Technology's Quick Ratio has ranged from 0.56 to 2.68. According to the industry distribution chart, Microchip Technology ranks #711 out of 1028 companies in the Semiconductors industry, placing it in the top 69.2%.
Is Microchip Technology's Quick Ratio too high?
Microchip Technology's current Quick Ratio of 1.18 is 13% above median its 10-year median of 1.04. Over the past 10 years, this metric has ranged from a low of 0.56 to a high of 2.68. The Semiconductors industry median Quick Ratio is 1.85. Microchip Technology's value of 1.18 is 36.2% below this industry median. Based on the distribution chart, Microchip Technology ranks #711 out of 1028 companies in the Semiconductors industry, which is below the industry midpoint. Overall, Microchip Technology has a GF Score™ of 71/100 and is considered Significantly Overvalued, reflecting its overall financial health beyond just this single metric.
How does Microchip Technology's Quick Ratio compare to CBRS and ON?
According to the Semiconductors industry distribution chart, Microchip Technology ranks #711 out of 1028 companies for Quick Ratio. This places Microchip Technology in the lower half of its industry. The industry median Quick Ratio is 1.85. Microchip Technology's value of 1.18 is 36.2% below this benchmark. Historically, Microchip Technology's own Quick Ratio has ranged from 0.56 to 2.68 over the past decade. While the company's 10-year median is 1.04 vs. the industry median of 1.85, 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 Quick Ratio for a Semiconductors company?
The median Quick Ratio among Semiconductors companies is 1.85, based on 1,028 companies in the industry. Companies in the top quartile (top 25%) have a Quick Ratio significantly above this median, while those in the bottom quartile fall well below. However, Quick Ratio should not be evaluated in isolation — investors should consider it alongside profitability, growth, and financial strength metrics. Microchip Technology's current Quick Ratio of 1.18 is 36.2% 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 Quick Ratio mean?
A high Quick Ratio can signal that a stock is expensive relative to its fundamentals. Quick ratio is the ratio of current assets less inventory to current liabilities. View historical data on Microchip Technology and its competitors. For the Semiconductors industry, the median Quick Ratio is 1.85 — values significantly above this may indicate overvaluation, while values below may suggest a bargain or underlying issues. Microchip Technology's current Quick Ratio is 1.18, which is 13% above median its own 10-year median of 1.04. 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?
Based on GuruFocus' analysis, Microchip Technology (FRA:MCP) is currently considered Significantly Overvalued. The stock's GF Value™ is €53.71, compared to a current price of €80.72 — trading 50.3% above its estimated fair value. The current Quick Ratio is 1.18, which is 13% above median its 10-year median of 1.04 and 36.2% below the Semiconductors industry median of 1.85. Microchip Technology's overall GF Score™ is 71/100 with 6 warning signs to review. Investors should evaluate multiple metrics — including profitability, growth, and financial strength — before making a decision.
How is Quick Ratio calculated?
Quick Ratio is calculated from a company's financial statements. For Microchip Technology (FRA:MCP), the current Quick Ratio is 1.18 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 (FRA:MCP) Overvalued in 2026?
Based on GuruFocus' analysis, Microchip Technology stock appears to be overvalued.
The current stock price of €80.72 is trading 50.3% above its estimated GF Value™ of €53.71.
GuruFocus considers Microchip Technology to be Significantly Overvalued.
Key valuation signals for FRA:MCP:
Quick Ratio: 1.18 (13% above median its 10-year median of 1.04)
GF Value™: €53.71 vs. price of €80.72 (50.3% above fair value)
Industry Position: 36.2% below the Semiconductors median (#711 of 1028)
No single metric tells the full story. See the FRA:MCP 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.
71GF Score
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