Microchip Technology Inc (MCHP)

Debt-to-assets ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	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
Long-term debt	US$ in thousands	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—	—
Total assets	US$ in thousands	—	15,632,200	15,622,300	15,839,700	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
Debt-to-assets ratio		—	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00	0.00

March 31, 2025 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $—K ÷ $—K
= —

Microchip Technology Inc has consistently maintained a debt-to-assets ratio of 0.00 from June 30, 2020, up to March 31, 2025, with the data ending at that point. A debt-to-assets ratio of 0.00 indicates that the company has no debt relative to its total assets during this period. This can be considered a positive financial indicator, suggesting that the company has either managed to operate without using debt to finance its assets or has been able to pay off its debt obligations effectively.

Having a low or zero debt-to-assets ratio can indicate financial stability and strength, as it implies a lower financial risk due to reduced reliance on external financing. It also shows that the company's assets are financed primarily through equity, which may lead to enhanced financial flexibility and less vulnerability to economic downturns or fluctuations in interest rates.

Overall, a consistent debt-to-assets ratio of 0.00 for Microchip Technology Inc reflects a prudent financial management approach and a strong balance sheet position, positioning the company well for future growth opportunities.