Adjusted Financial Ratios (Summary)
Adjusted Total Asset Turnover
Adjusted Current Ratio
Adjusted Debt to Equity
Adjusted Debt to Capital
Adjusted Financial Leverage
Adjusted Net Profit Margin
Adjusted Return on Equity (ROE)
Adjusted Return on Assets (ROA)

Microchip Technology Inc., adjusted financial ratios

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Activity Ratio
Total Asset Turnover
Reported	0.42	0.33	0.30	0.29	0.48	0.44
Adjusted	0.48	0.37	0.34	0.32	0.48	0.44
Liquidity Ratio
Current Ratio
Reported	1.75	0.89	1.35	0.93	1.66	3.27
Adjusted	1.85	0.89	1.36	0.93	1.66	3.28
Solvency Ratios
Debt to Equity
Reported	1.30	1.67	1.70	1.95	0.94	0.90
Adjusted	1.84	2.48	2.30	2.39	0.92	0.83
Debt to Capital
Reported	0.57	0.63	0.63	0.66	0.48	0.47
Adjusted	0.65	0.71	0.70	0.71	0.48	0.45
Financial Leverage
Reported	2.75	3.09	3.12	3.47	2.52	2.35
Adjusted	3.37	4.03	3.75	3.85	2.41	2.11
Profitability Ratios
Net Profit Margin
Reported	18.85%	6.42%	10.82%	6.65%	6.42%	4.83%
Adjusted	20.43%	3.64%	1.14%	5.47%	7.32%	2.12%
Return on Equity (ROE)
Reported	21.81%	6.55%	10.22%	6.73%	7.79%	5.03%
Adjusted	33.14%	5.41%	1.44%	6.70%	8.53%	1.98%
Return on Assets (ROA)
Reported	7.94%	2.12%	3.27%	1.94%	3.09%	2.14%
Adjusted	9.84%	1.34%	0.38%	1.74%	3.54%	0.94%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

Financial ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Microchip Technology Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Microchip Technology Inc. adjusted current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Microchip Technology Inc. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Microchip Technology Inc. adjusted debt-to-capital ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Microchip Technology Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Microchip Technology Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Microchip Technology Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Microchip Technology Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., Financial Ratios: Reported vs. Adjusted

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	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net sales	6,820,900)	5,438,400)	5,274,200)	5,349,500)	3,980,800)	3,407,807)
Total assets	16,199,500)	16,478,800)	17,426,100)	18,350,000)	8,257,200)	7,686,881)
Activity Ratio
Total asset turnover¹	0.42	0.33	0.30	0.29	0.48	0.44
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net sales²	6,938,500)	5,438,400)	5,274,200)	5,349,500)	3,980,800)	3,407,807)
Adjusted total assets³	14,408,600)	14,734,800)	15,682,500)	16,817,798)	8,220,668)	7,694,925)
Activity Ratio
Adjusted total asset turnover⁴	0.48	0.37	0.34	0.32	0.48	0.44

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
Total asset turnover = Net sales ÷ Total assets
= 6,820,900 ÷ 16,199,500 = 0.42

² Adjusted net sales. See details »

³ Adjusted total assets. See details »

⁴ 2022 Calculation
Adjusted total asset turnover = Adjusted net sales ÷ Adjusted total assets
= 6,938,500 ÷ 14,408,600 = 0.48

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Activity ratio	Description	The company
Adjusted total asset turnover	An activity ratio calculated as total revenue divided by adjusted total assets.	Microchip Technology Inc. adjusted total asset turnover ratio improved from 2020 to 2021 and from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Current assets	2,452,600)	2,145,200)	2,217,200)	2,214,800)	3,356,300)	2,305,040)
Current liabilities	1,399,000)	2,409,600)	1,637,400)	2,374,500)	2,017,400)	704,450)
Liquidity Ratio
Current ratio¹	1.75	0.89	1.35	0.93	1.66	3.27
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted current assets²	2,458,800)	2,150,400)	2,222,100)	2,216,800)	3,358,500)	2,307,124)
Adjusted current liabilities³	1,325,800)	2,409,600)	1,637,400)	2,374,500)	2,017,400)	704,450)
Liquidity Ratio
Adjusted current ratio⁴	1.85	0.89	1.36	0.93	1.66	3.28

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
Current ratio = Current assets ÷ Current liabilities
= 2,452,600 ÷ 1,399,000 = 1.75

² Adjusted current assets. See details »

³ Adjusted current liabilities. See details »

⁴ 2022 Calculation
Adjusted current ratio = Adjusted current assets ÷ Adjusted current liabilities
= 2,458,800 ÷ 1,325,800 = 1.85

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Liquidity ratio	Description	The company
Adjusted current ratio	A liquidity ratio calculated as adjusted current assets divided by adjusted current liabilities.	Microchip Technology Inc. adjusted current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total debt	7,687,400)	8,904,100)	9,482,200)	10,307,000)	3,068,300)	2,950,476)
Stockholders’ equity	5,894,800)	5,337,100)	5,585,500)	5,287,500)	3,279,800)	3,270,711)
Solvency Ratio
Debt to equity¹	1.30	1.67	1.70	1.95	0.94	0.90
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	7,850,100)	9,069,300)	9,621,400)	10,449,998)	3,129,768)	3,025,306)
Adjusted stockholders’ equity³	4,277,300)	3,652,900)	4,184,700)	4,366,200)	3,415,700)	3,653,195)
Solvency Ratio
Adjusted debt to equity⁴	1.84	2.48	2.30	2.39	0.92	0.83

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= 7,687,400 ÷ 5,894,800 = 1.30

² Adjusted total debt. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2022 Calculation
Adjusted debt to equity = Adjusted total debt ÷ Adjusted stockholders’ equity
= 7,850,100 ÷ 4,277,300 = 1.84

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Solvency ratio	Description	The company
Adjusted debt-to-equity ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total equity.	Microchip Technology Inc. adjusted debt-to-equity ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total debt	7,687,400)	8,904,100)	9,482,200)	10,307,000)	3,068,300)	2,950,476)
Total capital	13,582,200)	14,241,200)	15,067,700)	15,594,500)	6,348,100)	6,221,187)
Solvency Ratio
Debt to capital¹	0.57	0.63	0.63	0.66	0.48	0.47
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total debt²	7,850,100)	9,069,300)	9,621,400)	10,449,998)	3,129,768)	3,025,306)
Adjusted total capital³	12,127,400)	12,722,200)	13,806,100)	14,816,198)	6,545,468)	6,678,501)
Solvency Ratio
Adjusted debt to capital⁴	0.65	0.71	0.70	0.71	0.48	0.45

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= 7,687,400 ÷ 13,582,200 = 0.57

² Adjusted total debt. See details »

³ Adjusted total capital. See details »

⁴ 2022 Calculation
Adjusted debt to capital = Adjusted total debt ÷ Adjusted total capital
= 7,850,100 ÷ 12,127,400 = 0.65

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Solvency ratio	Description	The company
Adjusted debt-to-capital ratio	A solvency ratio calculated as adjusted total debt divided by adjusted total debt plus adjusted total equity.	Microchip Technology Inc. adjusted debt-to-capital ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Total assets	16,199,500)	16,478,800)	17,426,100)	18,350,000)	8,257,200)	7,686,881)
Stockholders’ equity	5,894,800)	5,337,100)	5,585,500)	5,287,500)	3,279,800)	3,270,711)
Solvency Ratio
Financial leverage¹	2.75	3.09	3.12	3.47	2.52	2.35
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted total assets²	14,408,600)	14,734,800)	15,682,500)	16,817,798)	8,220,668)	7,694,925)
Adjusted stockholders’ equity³	4,277,300)	3,652,900)	4,184,700)	4,366,200)	3,415,700)	3,653,195)
Solvency Ratio
Adjusted financial leverage⁴	3.37	4.03	3.75	3.85	2.41	2.11

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= 16,199,500 ÷ 5,894,800 = 2.75

² Adjusted total assets. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2022 Calculation
Adjusted financial leverage = Adjusted total assets ÷ Adjusted stockholders’ equity
= 14,408,600 ÷ 4,277,300 = 3.37

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Solvency ratio	Description	The company
Adjusted financial leverage	A measure of financial leverage calculated as adjusted total assets divided by adjusted total equity. Financial leverage is the extent to which a company can effect, through the use of debt, a proportional change in the return on common equity that is greater than a given proportional change in operating income.	Microchip Technology Inc. adjusted financial leverage ratio increased from 2020 to 2021 but then decreased significantly from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net income	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Net sales	6,820,900)	5,438,400)	5,274,200)	5,349,500)	3,980,800)	3,407,807)
Profitability Ratio
Net profit margin¹	18.85%	6.42%	10.82%	6.65%	6.42%	4.83%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income²	1,417,700)	197,800)	60,100)	292,700)	291,400)	72,394)
Adjusted net sales³	6,938,500)	5,438,400)	5,274,200)	5,349,500)	3,980,800)	3,407,807)
Profitability Ratio
Adjusted net profit margin⁴	20.43%	3.64%	1.14%	5.47%	7.32%	2.12%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
Net profit margin = 100 × Net income ÷ Net sales
= 100 × 1,285,500 ÷ 6,820,900 = 18.85%

² Adjusted net income. See details »

³ Adjusted net sales. See details »

⁴ 2022 Calculation
Adjusted net profit margin = 100 × Adjusted net income ÷ Adjusted net sales
= 100 × 1,417,700 ÷ 6,938,500 = 20.43%

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Profitability ratio	Description	The company
Adjusted net profit margin	An indicator of profitability, calculated as adjusted net income divided by total revenue.	Microchip Technology Inc. adjusted net profit margin ratio improved from 2020 to 2021 and from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net income	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Stockholders’ equity	5,894,800)	5,337,100)	5,585,500)	5,287,500)	3,279,800)	3,270,711)
Profitability Ratio
ROE¹	21.81%	6.55%	10.22%	6.73%	7.79%	5.03%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income²	1,417,700)	197,800)	60,100)	292,700)	291,400)	72,394)
Adjusted stockholders’ equity³	4,277,300)	3,652,900)	4,184,700)	4,366,200)	3,415,700)	3,653,195)
Profitability Ratio
Adjusted ROE⁴	33.14%	5.41%	1.44%	6.70%	8.53%	1.98%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
ROE = 100 × Net income ÷ Stockholders’ equity
= 100 × 1,285,500 ÷ 5,894,800 = 21.81%

² Adjusted net income. See details »

³ Adjusted stockholders’ equity. See details »

⁴ 2022 Calculation
Adjusted ROE = 100 × Adjusted net income ÷ Adjusted stockholders’ equity
= 100 × 1,417,700 ÷ 4,277,300 = 33.14%

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Profitability ratio	Description	The company
Adjusted ROE	A profitability ratio calculated as adjusted net income divided by adjusted total equity.	Microchip Technology Inc. adjusted ROE improved from 2020 to 2021 and from 2021 to 2022.

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Reported
Selected Financial Data (US$ in thousands)
Net income	1,285,500)	349,400)	570,600)	355,900)	255,400)	164,639)
Total assets	16,199,500)	16,478,800)	17,426,100)	18,350,000)	8,257,200)	7,686,881)
Profitability Ratio
ROA¹	7.94%	2.12%	3.27%	1.94%	3.09%	2.14%
Adjusted
Selected Financial Data (US$ in thousands)
Adjusted net income²	1,417,700)	197,800)	60,100)	292,700)	291,400)	72,394)
Adjusted total assets³	14,408,600)	14,734,800)	15,682,500)	16,817,798)	8,220,668)	7,694,925)
Profitability Ratio
Adjusted ROA⁴	9.84%	1.34%	0.38%	1.74%	3.54%	0.94%

Based on: 10-K (reporting date: 2022-03-31), 10-K (reporting date: 2021-03-31), 10-K (reporting date: 2020-03-31), 10-K (reporting date: 2019-03-31), 10-K (reporting date: 2018-03-31), 10-K (reporting date: 2017-03-31).

¹ 2022 Calculation
ROA = 100 × Net income ÷ Total assets
= 100 × 1,285,500 ÷ 16,199,500 = 7.94%

² Adjusted net income. See details »

³ Adjusted total assets. See details »

⁴ 2022 Calculation
Adjusted ROA = 100 × Adjusted net income ÷ Adjusted total assets
= 100 × 1,417,700 ÷ 14,408,600 = 9.84%

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Profitability ratio	Description	The company
Adjusted ROA	A profitability ratio calculated as adjusted net income divided by adjusted total assets.	Microchip Technology Inc. adjusted ROA improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc. (NASDAQ:MCHP)

Adjusted Financial Ratios

Adjusted Financial Ratios (Summary)

Microchip Technology Inc., Financial Ratios: Reported vs. Adjusted

Adjusted Total Asset Turnover

Adjusted Current Ratio

Adjusted Debt to Equity

Adjusted Debt to Capital

Adjusted Financial Leverage

Adjusted Net Profit Margin

Adjusted Return on Equity (ROE)

Adjusted Return on Assets (ROA)