Microchip Technology Inc (MCHP)

Current ratio

		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
Total current assets	US$ in thousands	3,013,000	3,219,600	3,526,400	3,269,600	3,069,300	2,833,700	2,676,000	2,643,200	2,452,600	2,200,500	2,149,100	2,157,100	2,145,200	2,152,500	2,122,100	2,135,000	2,217,200	2,104,000	2,177,800	2,278,500
Total current liabilities	US$ in thousands	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	2,336,600	2,423,400	2,450,800
Current ratio		1.20	0.98	1.03	1.02	0.98	1.76	1.05	1.78	1.75	1.81	1.92	1.98	0.89	0.85	1.07	0.83	1.35	0.90	0.90	0.93

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 few quarters. The current ratio measures the company's ability to cover its short-term liabilities with its current assets. A current ratio above 1 indicates that the company has more current assets than current liabilities.

The current ratio of Microchip Technology Inc was 1.20 at the end of March 2024, which improved from the previous quarter's ratio of 0.98. This indicates that the company had more current assets relative to current liabilities in the latest period, suggesting improved liquidity.

Looking back further, the company's current ratio has shown some volatility, with ratios ranging from 0.85 to 1.98 over the last few quarters. A ratio above 1 is generally considered healthy, but a very high ratio may indicate an inefficient use of assets.

It is worth noting that the current ratio is just one metric for analyzing a company's financial health, and it should be considered alongside other factors such as industry benchmarks, trend analysis, and profitability ratios to get a comprehensive understanding of Microchip Technology Inc's financial performance.