Microchip Technology Inc (MCHP)

Debt-to-equity 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-equity ratio		1.12	0.71	0.96	0.75	0.57	0.63	0.68	0.77	1.04	1.03	1.27	1.30	1.36	1.44	1.54	1.42	1.44	1.50	1.41	1.59

December 31, 2024 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $6,749,500K ÷ $6,031,500K
= 1.12

The debt-to-equity ratio of Microchip Technology Inc has shown a declining trend from March 31, 2020, to December 31, 2024, indicating a decreasing reliance on debt financing compared to equity funding over this period. The ratio decreased from 1.59 on March 31, 2020, to 0.57 on December 31, 2023, before slightly increasing to 1.12 on December 31, 2024. This downward trend suggests that the company has been gradually reducing its debt levels relative to its equity position, potentially improving its financial stability and risk profile. However, the uptick in the ratio in the most recent period warrants further monitoring to understand whether it signifies a strategic shift in the company's capital structure or is a temporary fluctuation.