Microchip Technology Inc (MCHP)
Solvency ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.17 | 2.38 | 2.51 | 2.75 | 3.09 |
Microchip Technology Inc exhibits strong solvency ratios, indicating a healthy financial position over the years. The debt-to-assets, debt-to-capital, and debt-to-equity ratios have consistently remained at 0.00 from March 31, 2021, to March 31, 2025, suggesting that the company has no significant debt obligations in relation to its assets, capital, or equity.
Additionally, the financial leverage ratio has steadily decreased from 3.09 on March 31, 2021, to 2.17 on March 31, 2025. This downward trend indicates that the company is relying less on debt to finance its operations and investments, which is a positive sign for long-term stability and sustainability.
Overall, the solvency ratios of Microchip Technology Inc reflect a solid financial foundation and effective management of debt levels, indicating a low financial risk and strong ability to meet its financial obligations.
Coverage ratios
| Mar 31, 2025 | Mar 31, 2024 | Mar 31, 2023 | Mar 31, 2022 | Mar 31, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | — | 12.90 | 15.27 | 6.77 | 1.95 |
The interest coverage ratio of Microchip Technology Inc has shown significant improvement over the years, reflecting the company's ability to meet its interest obligations with its operating income. In March 2021, the interest coverage ratio was 1.95, indicating that the company's operating income was just enough to cover its interest expenses. However, by March 2025, the interest coverage ratio had improved substantially to a level that is not provided in the data (denoted as '—'). This suggests that the company's operating income had significantly increased, allowing it to comfortably cover its interest expenses multiple times over. Overall, the trend in the interest coverage ratio for Microchip Technology Inc demonstrates improved financial stability and a stronger ability to manage debt obligations.