Microchip Technology Inc (MCHP)

Payables turnover

		Mar 31, 2025	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
Cost of revenue (ttm)	US$ in thousands	1,933,700	2,000,200	2,181,300	2,412,900	2,638,700	2,816,200	2,868,900	2,817,300	2,740,800	2,651,200	2,557,000	2,463,200	2,371,300	2,287,800	2,189,900	2,110,000	2,059,600	2,031,800	2,027,400	2,036,100
Payables	US$ in thousands	—	195,900	204,200	196,400	213,000	242,200	283,500	281,300	396,900	354,800	379,800	304,700	344,700	301,300	302,600	284,400	292,400	259,800	216,900	211,100
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

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $1,933,700K ÷ $—K
= —

The payables turnover ratio for Microchip Technology Inc has shown some fluctuations over the past few years. From June 30, 2020, to March 31, 2025, the payables turnover ratio ranged from a high of 12.39 to a low of 6.73.

The general trend indicates that Microchip Technology Inc has been able to manage its payables efficiently, with the ratio mostly staying above 7, which suggests that the company is able to pay off its suppliers relatively quickly.

However, there was a notable increase in the payables turnover ratio from March 31, 2024, to June 30, 2024, which may indicate a change in the company's payment policies or supplier relationships.

The ratio of payables turnover is an important indicator of how effectively a company is managing its trade credit obligations. Companies with a higher payables turnover ratio are able to pay their suppliers more frequently, which can indicate strong liquidity and efficient cash flow management.

Overall, the payables turnover ratio for Microchip Technology Inc demonstrates a relatively stable performance in managing its trade payables, with occasional variations that may warrant further investigation into the company's operational and financial strategies.