Microchip Technology Inc (MCHP)

Cash ratio

		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
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
Short-term investments	US$ in thousands	—	—	—	—	—	—	—	—	0	288,900	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
Cash ratio		—	0.44	0.09	0.21	0.13	0.09	0.08	0.08	0.08	0.36	0.12	0.26	0.23	0.26	0.23	0.26	0.12	0.15	0.19	0.15

March 31, 2025 calculation

Cash ratio = (Cash and cash equivalents + Short-term investments) ÷ Total current liabilities
= ($—K + $—K) ÷ $—K
= —

The cash ratio of Microchip Technology Inc has been fluctuating over the past few years based on the provided data. The cash ratio indicates the proportion of a company's current assets held in cash or cash equivalents relative to its current liabilities.

Between June 30, 2020, and June 30, 2022, the cash ratio ranged from 0.12 to 0.26, showing some variability in the company's cash position relative to its short-term obligations during this period. Notably, there was an increase in the cash ratio from September 30, 2021, to December 31, 2021, and then a decrease by March 31, 2022.

The cash ratio reached its peak at 0.36 on December 31, 2022, indicating a higher level of cash reserves compared to current liabilities at that point. However, by March 31, 2023, the cash ratio dropped significantly to 0.08 and remained at this level until September 30, 2023. This decline in the cash ratio could suggest potential liquidity challenges or a decrease in cash reserves during this period.

Subsequently, there was a slight increase in the cash ratio to 0.13 on March 31, 2024, followed by a more substantial rise to 0.44 on December 31, 2024. This surge in the cash ratio indicates a significant improvement in Microchip Technology Inc's liquidity position by the end of 2024.

Unfortunately, data is not available for the cash ratio on March 31, 2025, making it challenging to provide a complete picture of the company's most recent liquidity position. Overall, fluctuations in the cash ratio of Microchip Technology Inc suggest varying levels of liquidity and cash management effectiveness over the reviewed period.