Microchip Technology Inc (MCHP)

Cash ratio

		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
Cash and cash equivalents	US$ in thousands	586,000	286,100	315,100	319,700	281,000	256,600	271,200	234,000	288,900	304,800	377,100	317,400	313,500	253,300	277,700	280,000	370,700	368,300	378,200	401,000
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	0	0	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000	2,000
Total current liabilities	US$ in thousands	1,330,300	3,285,700	1,520,300	2,519,400	3,293,200	3,412,600	3,219,600	3,118,600	1,611,100	2,538,400	1,485,400	1,399,000	1,218,700	1,121,800	1,089,100	2,409,600	2,522,200	1,975,200	2,585,800	1,637,400
Cash ratio		0.44	0.09	0.21	0.13	0.09	0.08	0.08	0.08	0.18	0.12	0.26	0.23	0.26	0.23	0.26	0.12	0.15	0.19	0.15	0.25

December 31, 2024 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($586,000K + $—K) ÷ $1,330,300K
= 0.44

The cash ratio for Microchip Technology Inc has fluctuated over the years based on the provided data. The cash ratio measures the company's ability to cover its short-term liabilities with its cash and cash equivalents.

In March 2020, the cash ratio was 0.25, indicating that the company had $0.25 in cash and cash equivalents for every dollar of current liabilities. The ratio decreased to 0.15 by June 2020 and stayed relatively stable until December 2020.

In the following quarters, the cash ratio saw fluctuations, reaching a low of 0.08 in March 2023. This low ratio may suggest a potential liquidity challenge for the company during that period. However, the ratio improved to 0.44 by December 2024, indicating a stronger position in terms of liquidity.

Overall, the trend in the cash ratio for Microchip Technology Inc shows variability, with some periods of lower liquidity and others of stronger cash position. Investors and stakeholders may want to monitor the company's cash management and liquidity ratios closely to assess its financial health and ability to meet its short-term obligations.