Microchip Technology Inc (MCHP)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	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	5,616,600	5,361,300	5,288,300
Debt-to-capital ratio		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	0.59	0.61	0.62

March 31, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $5,000,400K ÷ ($5,000,400K + $6,657,800K)
= 0.43

The debt-to-capital ratio of Microchip Technology Inc has shown some fluctuations over the past several quarters. The ratio ranged from 0.36 to 0.61 during the analyzed period.

The ratio indicates the proportion of the company's capital that is financed by debt. A lower ratio suggests a lower reliance on debt financing for operations and investments, indicating a stronger financial position and lower financial risk. Conversely, a higher ratio could signal higher leverage and financial risk for the company.

Microchip's debt-to-capital ratio fluctuated between 0.36 and 0.62, with a general upward trend evident in recent quarters. This trend suggests an increasing reliance on debt financing to support the company's operations and investments. It's important for investors and stakeholders to monitor this trend to assess the company's financial health and risk profile.