Microchip Technology Inc (MCHP)

Number of days of payables

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Payables turnover		10.21	10.68	12.29	12.39	11.63	10.12	10.02	6.91	7.47	6.73	8.08	6.88	7.59	7.24	7.42	7.04	7.82	9.35	9.65	8.23
Number of days of payables	days	35.75	34.17	29.71	29.46	31.39	36.07	36.44	52.86	48.85	54.21	45.15	53.06	48.07	50.44	49.20	51.82	46.67	39.05	37.84	44.33

December 31, 2024 calculation

Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 10.21
= 35.75

Microchip Technology Inc's number of days of payables has shown fluctuations over the years. The company's average number of days of payables ranged between approximately 29 days to 54 days between March 31, 2020, and December 31, 2024. This indicates that the company takes an average of 29 to 54 days to pay its suppliers and vendors for goods and services received.

The trend in the number of days of payables shows some variability with periods of increase and decrease. For example, there was an increase in the number of days of payables from March 31, 2021, to September 30, 2022, followed by a decrease in December 31, 2022, and March 31, 2023. The number of days of payables decreased significantly from June 30, 2023, to December 31, 2024, reaching its lowest point of 29.46 days.

It is important to note that a decreasing trend in the number of days of payables may indicate the company is paying its suppliers more promptly, potentially reflecting better financial health or negotiation power. Conversely, an increasing trend could suggest potential liquidity issues or deliberate extended payment terms for cash flow management. Further analysis and comparison with industry benchmarks would provide additional insights into Microchip Technology Inc's payables management efficiency.