Microchip Technology Balance Sheet Health
Financial Health criteria checks 3/6
Microchip Technology has a total shareholder equity of $7.1B and total debt of $5.7B, which brings its debt-to-equity ratio to 80.4%. Its total assets and total liabilities are $16.1B and $9.1B respectively. Microchip Technology's EBIT is $3.2B making its interest coverage ratio 17.2. It has cash and short-term investments of $281.0M.
Key information
80.4%
Debt to equity ratio
US$5.70b
Debt
Interest coverage ratio | 17.2x |
Cash | US$281.00m |
Equity | US$7.08b |
Total liabilities | US$9.06b |
Total assets | US$16.14b |
Recent financial health updates
No updates
Recent updates
Financial Position Analysis
Short Term Liabilities: MCHP's short term assets ($3.2B) do not cover its short term liabilities ($3.3B).
Long Term Liabilities: MCHP's short term assets ($3.2B) do not cover its long term liabilities ($5.8B).
Debt to Equity History and Analysis
Debt Level: MCHP's net debt to equity ratio (76.5%) is considered high.
Reducing Debt: MCHP's debt to equity ratio has reduced from 204.3% to 80.4% over the past 5 years.
Debt Coverage: MCHP's debt is well covered by operating cash flow (55.7%).
Interest Coverage: MCHP's interest payments on its debt are well covered by EBIT (17.2x coverage).