Microchip Technology Inc (MCHP)

Number of days of payables

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Payables turnover		12.04	12.39	6.91	6.88	7.04
Number of days of payables	days	30.31	29.46	52.86	53.06	51.82

March 31, 2025 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 12.04
= 30.31

The number of days of payables for Microchip Technology Inc has shown a relatively stable trend over the past five years, ranging from 51.82 days as of March 31, 2021, to 30.31 days as of March 31, 2025. There was a slight increase in the number of days of payables from 51.82 days in 2021 to 53.06 days in 2022, followed by a decrease to 52.86 days in 2023. However, the most significant improvement occurred in the most recent period, with the number of days of payables dropping to 29.46 days in 2024, and a slight increase to 30.31 days in 2025.

This decline in the number of days of payables indicates that Microchip Technology Inc has been managing its payables more efficiently in recent years, possibly negotiating better payment terms with its suppliers or improving its working capital management. Overall, the decreasing trend in the number of days of payables suggests that the company is able to pay its suppliers more promptly, which could positively impact its liquidity and financial health.