Microchip Technology Inc (MCHP)

Quick 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
Cash	US$ in thousands	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	397,100	401,800	434,000
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	5,200	3,300	3,100
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
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
Quick ratio		0.58	0.51	0.58	0.54	0.49	0.91	0.57	1.03	0.99	1.02	1.11	1.18	0.53	0.50	0.64	0.49	0.82	0.52	0.52	0.56

March 31, 2024 calculation

Quick ratio = (Cash + Short-term investments + Receivables) ÷ Total current liabilities
= ($319,700K + $—K + $1,143,700K) ÷ $2,519,400K
= 0.58

The quick ratio of Microchip Technology Inc has shown fluctuation over recent quarters, with a range of 0.49 to 1.18. The quick ratio measures the company's ability to meet its short-term obligations with its most liquid assets. A quick ratio below 1 indicates that the company may have difficulty meeting its immediate obligations.

In the most recent quarter, as of March 31, 2024, the quick ratio stood at 0.58, indicating that for every dollar of current liabilities, the company had $0.58 in quick assets available to cover those obligations. This ratio has slightly improved compared to the previous quarter but still remains below 1, suggesting that Microchip may continue to face challenges in meeting its short-term obligations from its liquid assets.

It is essential for investors and analysts to closely monitor the quick ratio trend to assess the company's liquidity position accurately and its ability to manage short-term financial obligations effectively. Further analysis and comparison with industry benchmarks may provide additional insights into Microchip Technology Inc's financial health and liquidity management.