Microchip Technology Balance Sheet Health
Financial Health criteria checks 3/6
Microchip Technology has a total shareholder equity of $6.3B and total debt of $6.4B, which brings its debt-to-equity ratio to 102.3%. Its total assets and total liabilities are $15.6B and $9.3B respectively. Microchip Technology's EBIT is $1.1B making its interest coverage ratio 5.3. It has cash and short-term investments of $286.1M.
Key information
102.3%
Debt to equity ratio
US$6.42b
Debt
| Interest coverage ratio | 5.3x |
| Cash | US$286.10m |
| Equity | US$6.28b |
| Total liabilities | US$9.35b |
| Total assets | US$15.62b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: MCHP's short term assets ($2.9B) do not cover its short term liabilities ($3.3B).
Long Term Liabilities: MCHP's short term assets ($2.9B) do not cover its long term liabilities ($6.1B).
Debt to Equity History and Analysis
Debt Level: MCHP's net debt to equity ratio (97.8%) is considered high.
Reducing Debt: MCHP's debt to equity ratio has reduced from 182.8% to 102.3% over the past 5 years.
Debt Coverage: MCHP's debt is well covered by operating cash flow (26.5%).
Interest Coverage: MCHP's interest payments on its debt are well covered by EBIT (5.3x coverage).