Microchip Technology Inc (MCHP)

Current ratio

		Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020
Total current assets	US$ in thousands	3,013,000	3,069,300	2,452,600	2,145,200	2,217,200
Total current liabilities	US$ in thousands	2,519,400	3,118,600	1,399,000	2,409,600	1,637,400
Current ratio		1.20	0.98	1.75	0.89	1.35

March 31, 2024 calculation

Current ratio = Total current assets ÷ Total current liabilities
= $3,013,000K ÷ $2,519,400K
= 1.20

The current ratio of Microchip Technology Inc has fluctuated over the past five years. In the most recent fiscal year ending March 31, 2024, the current ratio stood at 1.20, indicating that the company had $1.20 in current assets to cover each $1 of current liabilities. This represents an improvement from the previous year where the current ratio was 0.98.

In the years prior, the current ratio was 1.75 in 2022, 0.89 in 2021, and 1.35 in 2020. The current ratio provides insights into the company's short-term liquidity and ability to meet its short-term obligations. A higher current ratio is generally preferred as it suggests a stronger ability to cover current liabilities.

The fluctuation in Microchip Technology Inc's current ratio over the years could indicate changes in the company's working capital management, liquidity position, or financial health. It is important for investors and stakeholders to further analyze the components of current assets and liabilities to gain a better understanding of the company's financial position.