Microchip Technology Inc (MCHP)

Debt-to-equity ratio

		Mar 31, 2025	Mar 31, 2024	Mar 31, 2023	Mar 31, 2022	Mar 31, 2021
Long-term debt	US$ in thousands	—	—	—	—	—
Total stockholders’ equity	US$ in thousands	7,078,300	6,657,800	6,513,600	5,894,800	5,337,100
Debt-to-equity ratio		0.00	0.00	0.00	0.00	0.00

March 31, 2025 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $—K ÷ $7,078,300K
= 0.00

The debt-to-equity ratio of Microchip Technology Inc has been consistently recorded at 0.00 from March 31, 2021, to March 31, 2025. This indicates that the company has been utilizing more equity financing rather than debt financing to fund its operations and growth. A debt-to-equity ratio of 0.00 signifies that the company has no debt on its balance sheet relative to its equity. This may indicate a conservative financial strategy, potentially leading to lower financial risk and interest expenses. However, it's important to note that a very low debt-to-equity ratio could also suggest limited leverage, which might restrict the company's ability to benefit from debt-related tax shields or capitalize on investment opportunities.