Microchip Technology Inc (MCHP)

Receivables turnover

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Revenue	US$ in thousands	4,401,600	7,634,400	8,438,700	6,820,900	5,438,400
Receivables	US$ in thousands	689,700	1,143,700	1,305,300	1,072,600	997,700
Receivables turnover		6.38	6.68	6.46	6.36	5.45

March 31, 2025 calculation

Receivables turnover = Revenue ÷ Receivables
= $4,401,600K ÷ $689,700K
= 6.38

The receivables turnover ratio measures how efficiently Microchip Technology Inc is collecting payment from its customers. The trend in Microchip's receivables turnover over the past five years is generally positive. The ratio has been increasing steadily from 5.45 in March 2021 to 6.38 in March 2025.

A higher receivables turnover ratio indicates that Microchip is collecting its accounts receivable faster, which is a positive sign of efficient operations. The improvement in the receivables turnover ratio suggests that Microchip has been managing its credit policies well and effectively collecting payments from customers.

Overall, the increasing trend in Microchip's receivables turnover ratio demonstrates the company's effectiveness in managing its accounts receivable and converting credit sales into cash.