Microchip Technology Inc (MCHP)

Debt-to-assets 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
Long-term debt	US$ in thousands	5,000,400	4,033,300	4,414,700	4,632,200	5,041,700	6,588,700	6,304,900	7,563,900	7,687,400	7,868,500	8,200,600	8,527,400	7,581,200	7,647,800	8,181,400	7,730,000	8,873,400	8,179,700	8,415,300	8,711,400
Total assets	US$ in thousands	15,873,200	16,143,000	16,601,400	16,494,600	16,370,300	16,116,100	16,141,100	16,208,400	16,199,500	16,047,200	16,215,000	16,277,800	16,478,800	16,576,100	16,770,900	17,028,100	17,426,100	17,588,600	17,858,500	18,246,400
Debt-to-assets ratio		0.32	0.25	0.27	0.28	0.31	0.41	0.39	0.47	0.47	0.49	0.51	0.52	0.46	0.46	0.49	0.45	0.51	0.47	0.47	0.48

March 31, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $5,000,400K ÷ $15,873,200K
= 0.32

The debt-to-assets ratio of Microchip Technology Inc has shown some fluctuation over the past few quarters. The ratio has ranged from as low as 0.25 to as high as 0.52, indicating that the company maintains a moderate level of debt relative to its total assets.

Overall, it is noteworthy that the trend in the debt-to-assets ratio has been somewhat volatile, with some quarters showing a decrease in the ratio followed by an increase in subsequent quarters. This pattern suggests that the company may be actively managing its debt levels to maintain a balance between leverage and financial stability.

The latest reported ratio of 0.32 as of March 31, 2024, reflects that for every dollar of assets, the company has 32 cents in debt. This indicates that a significant portion of the company's assets are financed through debt, but also that Microchip Technology Inc has a considerable asset base to support its obligations.

It is important for investors and stakeholders to monitor the debt-to-assets ratio over time to assess the company's ability to manage its debt levels and maintain financial health. A consistent increase in the ratio could signal potential financial risks, while a decreasing trend may indicate improved financial strength and lower leverage.