Microchip Technology Inc (MCHP)

Financial leverage 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
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
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
Financial leverage ratio		—	2.59	2.49	2.47	2.38	2.28	2.38	2.41	2.51	2.55	2.64	2.71	2.75	2.77	2.84	2.95	3.09	3.13	3.08	3.10

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $—K ÷ $—K
= —

The financial leverage ratio for Microchip Technology Inc has been on a declining trend over the past few years. The ratio stood at 3.10 as of June 30, 2020, indicating that for every dollar of equity, the company had $3.10 of debt. Thereafter, the ratio decreased to 2.51 as of March 31, 2023, indicating a reduction in the level of debt relative to equity.

This declining trend suggests that the company has been gradually reducing its reliance on debt financing to support its operations. A lower financial leverage ratio typically indicates a lower level of financial risk and greater financial stability, as the company is less vulnerable to fluctuations in interest rates or economic conditions.

However, it is important to note that the financial leverage ratio for March 31, 2025, is not available in the provided data. It would be advisable to monitor the trend of this ratio over time to assess the company's capital structure and financial risk profile effectively.