Microchip Technology Inc (MCHP)

Payables turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Cost of revenue	US$ in thousands	1,933,700	2,638,700	2,740,800	2,371,300	2,059,600
Payables	US$ in thousands	160,600	213,000	396,900	344,700	292,400
Payables turnover		12.04	12.39	6.91	6.88	7.04

March 31, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $1,933,700K ÷ $160,600K
= 12.04

Based on the data provided, the payables turnover ratio for Microchip Technology Inc has shown fluctuations over the past five years. The ratio decreased from 7.04 in March 31, 2021 to 6.88 in March 31, 2022, indicating a slight decrease in how quickly the company is paying its suppliers.

However, the ratio slightly improved in the following years, reaching 6.91 in March 31, 2023. The most significant increase was observed in March 31, 2024, with the payables turnover ratio jumping to 12.39, suggesting a more efficient management of payables during that period.

In the most recent year, March 31, 2025, the payables turnover ratio slightly decreased to 12.04, indicating that the company may be taking slightly longer to pay its suppliers compared to the previous year.

Overall, the trend in the payables turnover ratio for Microchip Technology Inc shows some variability, with fluctuations in the efficiency of paying suppliers over the years. It is important for the company to monitor this ratio to ensure optimal management of its payables and maintain healthy supplier relationships.