Microchip Technology Inc (MCHP)

Debt-to-capital ratio

		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	Mar 31, 2020
Long-term debt	US$ in thousands	6,749,500	4,476,600	6,167,900	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
Total stockholders’ equity	US$ in thousands	6,031,500	6,275,900	6,406,000	6,657,800	7,080,200	6,968,500	6,831,300	6,513,600	6,311,600	6,103,100	5,977,900	5,894,800	5,803,300	5,702,900	5,519,900	5,337,100	5,297,000	5,443,700	5,501,300	5,585,500
Debt-to-capital ratio		0.53	0.42	0.49	0.43	0.36	0.39	0.40	0.44	0.51	0.51	0.56	0.57	0.58	0.59	0.61	0.59	0.59	0.60	0.58	0.61

December 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $6,749,500K ÷ ($6,749,500K + $6,031,500K)
= 0.53

The debt-to-capital ratio of Microchip Technology Inc has shown fluctuations over the past few years, indicating varying levels of leverage in the company's capital structure. The ratio ranged from 0.51 to 0.61 during the period from March 31, 2020, to December 31, 2024.

Notably, the ratio decreased from 0.61 as of March 31, 2020, to 0.51 as of September 30, 2022, suggesting a potential deleveraging or a shift towards a more equity-centric financing strategy during this period. However, the ratio increased again to 0.53 by December 31, 2024, indicating a possible increase in debt relative to capital.

Overall, the downward trend observed in the debt-to-capital ratio from March 31, 2020, to December 31, 2024, could signify a reduction in the company's reliance on debt financing or an improvement in its capital base. This trend may reflect the company's efforts to manage its financial risk and maintain a balanced capital structure over time.