Microchip Technology Inc (MCHP)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | — | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| 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 |
Microchip Technology Inc has shown consistently strong solvency ratios over the past few years.
The Debt-to-assets ratio has remained at 0.00% throughout the period, indicating that the company's assets are entirely funded by equity rather than debt. This signifies that Microchip Technology Inc has a very low risk of financial distress related to its asset base.
Similarly, the Debt-to-capital ratio has also consistently remained at 0.00%, demonstrating that the company's capital structure is primarily composed of equity with no significant reliance on debt. This reflects a healthy financial position and a low level of financial risk.
The Debt-to-equity ratio has also consistently been at 0.00%, indicating that the company is not heavily leveraging its equity with debt. This is a positive indicator of financial stability and operational efficiency.
The Financial leverage ratio has exhibited a decreasing trend over the years, starting at 3.10 in June 2020 and decreasing to 2.59 by December 31, 2024. This decline indicates a reduction in the company's reliance on debt to finance its operations, reflecting a stronger financial position and improved solvency.
Overall, Microchip Technology Inc's solvency ratios suggest a robust financial position, with prudent capital structure management and a low risk of insolvency.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 2.11 | 2.67 | 5.18 | 8.97 | 12.99 | 16.63 | 17.79 | 16.58 | 15.31 | 13.11 | 11.17 | 8.80 | 6.77 | 5.14 | 3.88 | 3.10 | 2.36 | 1.98 | 1.55 | 1.44 |
Microchip Technology Inc's interest coverage ratio has shown an improving trend over the past few years. The interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt.
From June 30, 2020, to March 31, 2025, the interest coverage ratio increased consistently from 1.44 to 2.11. This indicates that the company's earnings are now more than sufficient to cover its interest expenses.
The gradual improvement in the interest coverage ratio suggests that Microchip Technology Inc has become more financially stable over time. A higher interest coverage ratio signifies the company's better capacity to handle its debt obligations and reflects positively on its financial health.
Overall, the increasing trend in Microchip Technology Inc's interest coverage ratio is a positive indicator of the company's ability to manage its debt and interest payments efficiently.