Microchip Technology Inc (MCHP)

Receivables turnover

		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	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019
Revenue (ttm)	US$ in thousands	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	5,277,600	5,364,900	5,459,600
Receivables	US$ in thousands	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	807,500	848,600	936,800
Receivables turnover		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	6.54	6.32	5.83

March 31, 2024 calculation

Receivables turnover = Revenue (ttm) ÷ Receivables
= $7,634,400K ÷ $1,143,700K
= 6.68

The receivables turnover ratio for Microchip Technology Inc has shown some fluctuations over the past few quarters. The ratio indicates how efficiently the company is collecting on its credit sales within a given period.

Looking at the trend, we can see that the average receivables turnover ratio over the period is around 6.23, indicating that on average, Microchip Technology collects its receivables approximately 6.23 times within a year.

The ratio has generally been within a narrow range between 5.24 to 6.93, with a slight downward trend in recent quarters. A higher turnover ratio generally indicates a more efficient management of receivables, as the company is able to collect outstanding payments more frequently.

It is important to note that a receivables turnover ratio should be analyzed in conjunction with industry benchmarks to provide a more meaningful interpretation. Overall, Microchip Technology Inc's receivables turnover ratio demonstrates relatively efficient management of its accounts receivable, although there may be some room for improvement based on the fluctuations observed.