Microchip Technology Inc (MCHP)

Number of days of payables

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Payables turnover		12.39	6.91	6.88	7.04	8.23
Number of days of payables	days	29.46	52.86	53.06	51.82	44.33

March 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.39
= 29.46

The number of days of payables for Microchip Technology Inc has shown a decreasing trend over the past five years. In particular, it decreased from 52.86 days in March 2023 to 29.46 days in March 2024, reflecting a more efficient management of the company's accounts payable. This decrease indicates that Microchip Technology Inc is taking fewer days to pay its suppliers, which could imply improved cash flow management and potentially more favorable payment terms negotiated with suppliers. Overall, the declining trend in days of payables suggests a positive development in the company's working capital management.