Microchip Technology Balance Sheet Health
Financial Health criteria checks 4/6
Microchip Technology has a total shareholder equity of $6.4B and total debt of $6.2B, which brings its debt-to-equity ratio to 96.3%. Its total assets and total liabilities are $15.8B and $9.4B respectively. Microchip Technology's EBIT is $1.9B making its interest coverage ratio 9.2. It has cash and short-term investments of $315.1M.
Key information
96.3%
Debt to equity ratio
US$6.17b
Debt
| Interest coverage ratio | 9.2x |
| Cash | US$315.10m |
| Equity | US$6.41b |
| Total liabilities | US$9.43b |
| Total assets | US$15.84b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: MCHP's short term assets ($2.9B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: MCHP's short term assets ($2.9B) do not cover its long term liabilities ($7.9B).
Debt to Equity History and Analysis
Debt Level: MCHP's net debt to equity ratio (91.4%) is considered high.
Reducing Debt: MCHP's debt to equity ratio has reduced from 190.7% to 96.3% over the past 5 years.
Debt Coverage: MCHP's debt is well covered by operating cash flow (36.9%).
Interest Coverage: MCHP's interest payments on its debt are well covered by EBIT (9.2x coverage).