Microchip Technology Inc (MCHP)

Receivables turnover

		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
Revenue (ttm)	US$ in thousands	4,756,900	5,496,600	6,587,100	7,634,400	8,541,300	8,944,800	8,763,700	8,438,700	8,050,200	7,638,500	7,215,100	6,820,900	6,443,800	6,038,400	5,698,100	5,438,400	5,297,700	5,233,000	5,261,300	5,274,200
Receivables	US$ in thousands	857,200	1,044,300	1,095,800	1,143,700	1,398,100	1,706,200	1,465,000	1,305,300	1,175,000	1,133,200	1,145,000	1,072,600	930,100	985,600	1,000,700	997,700	893,800	903,700	894,300	934,000
Receivables turnover		5.55	5.26	6.01	6.68	6.11	5.24	5.98	6.46	6.85	6.74	6.30	6.36	6.93	6.13	5.69	5.45	5.93	5.79	5.88	5.65

December 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $4,756,900K ÷ $857,200K
= 5.55

The receivables turnover ratio for Microchip Technology Inc has shown some fluctuations over the past few years. The ratio indicates the company's efficiency in collecting its accounts receivable during a specific period.

From March 31, 2020, to December 31, 2020, the receivables turnover improved steadily from 5.65 to 5.93, suggesting that the company was collecting its receivables at a slightly faster rate. However, in the following periods up to June 30, 2021, the ratio fluctuated within a narrow range.

From September 30, 2021, the turnover ratio started to increase significantly, reaching a peak of 6.93 by December 31, 2021. This improvement indicates that Microchip Technology Inc was able to collect its accounts receivable more efficiently during this period.

Subsequently, the ratio experienced some fluctuations but generally remained at a relatively higher level, indicating continued effectiveness in collecting receivables. By December 31, 2024, the turnover ratio stood at 5.55, showing a slight decrease from the peak but still indicating a reasonable efficiency in managing accounts receivable.

Overall, despite some fluctuations, the trend in Microchip Technology Inc's receivables turnover ratio demonstrates a generally positive performance in managing and collecting its accounts receivable over the analyzed period.