Analysis of Liquidity Ratios
Liquidity ratios measure the company ability to meet its short-term obligations.
Liquidity Ratios (Summary)
Microchip Technology Inc., liquidity ratios
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).
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Microchip Technology Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Microchip Technology Inc. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Microchip Technology Inc. cash ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |
Current Ratio
Microchip Technology Inc., current ratio calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| 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 | |
| Benchmarks | |||||||
| Current Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 2.36 | 2.02 | 2.54 | 1.95 | — | — | |
| Analog Devices Inc. | 2.02 | 1.94 | 1.84 | 1.32 | 1.50 | — | |
| Applied Materials Inc. | 2.16 | 2.54 | 3.00 | 2.30 | 2.64 | — | |
| Broadcom Inc. | 2.62 | 2.64 | 1.87 | 1.44 | 3.90 | — | |
| First Solar Inc. | 3.65 | 4.39 | 3.56 | 2.73 | — | — | |
| Intel Corp. | 1.57 | 2.10 | 1.91 | 1.40 | — | — | |
| KLA Corp. | 2.50 | 2.71 | 2.78 | 2.44 | — | — | |
| Lam Research Corp. | 2.69 | 3.30 | 3.43 | 3.61 | — | — | |
| Micron Technology Inc. | 2.89 | 3.10 | 2.71 | 2.58 | — | — | |
| NVIDIA Corp. | 6.65 | 4.09 | 7.67 | 7.94 | — | — | |
| Qualcomm Inc. | 1.75 | 1.68 | 2.14 | 1.88 | — | — | |
| Texas Instruments Inc. | 4.70 | 5.33 | 4.28 | 4.13 | — | — | |
| Current Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 2.36 | 2.48 | 2.48 | 2.06 | — | — | |
| Current Ratio, Industry | |||||||
| Information Technology | 1.43 | 1.64 | 1.85 | 1.77 | — | — | |
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 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Current ratio | A liquidity ratio calculated as current assets divided by current liabilities. | Microchip Technology Inc. current ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Quick Ratio
Microchip Technology Inc., quick ratio calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 317,400) | 280,000) | 401,000) | 428,600) | 901,300) | 908,684) | |
| Short-term investments | 2,000) | 2,000) | 2,000) | 2,300) | 1,295,300) | 394,088) | |
| Accounts receivable, net | 1,072,600) | 997,700) | 934,000) | 880,600) | 563,700) | 478,373) | |
| Total quick assets | 1,392,000) | 1,279,700) | 1,337,000) | 1,311,500) | 2,760,300) | 1,781,145) | |
| Current liabilities | 1,399,000) | 2,409,600) | 1,637,400) | 2,374,500) | 2,017,400) | 704,450) | |
| Liquidity Ratio | |||||||
| Quick ratio1 | 0.99 | 0.53 | 0.82 | 0.55 | 1.37 | 2.53 | |
| Benchmarks | |||||||
| Quick Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.57 | 1.49 | 1.81 | 1.43 | — | — | |
| Analog Devices Inc. | 1.34 | 1.24 | 1.31 | 0.85 | 1.04 | — | |
| Applied Materials Inc. | 1.17 | 1.64 | 1.95 | 1.38 | 1.62 | — | |
| Broadcom Inc. | 2.18 | 2.27 | 1.56 | 1.21 | 3.26 | — | |
| First Solar Inc. | 2.80 | 3.10 | 2.38 | 2.00 | — | — | |
| Intel Corp. | 1.01 | 1.38 | 1.24 | 0.93 | — | — | |
| KLA Corp. | 1.57 | 1.81 | 1.82 | 1.54 | — | — | |
| Lam Research Corp. | 1.72 | 2.11 | 2.22 | 2.16 | — | — | |
| Micron Technology Inc. | 1.92 | 2.17 | 1.82 | 1.74 | — | — | |
| NVIDIA Corp. | 5.96 | 3.56 | 7.04 | 6.66 | — | — | |
| Qualcomm Inc. | 1.01 | 1.34 | 1.75 | 1.65 | — | — | |
| Texas Instruments Inc. | 3.67 | 4.45 | 3.34 | 3.04 | — | — | |
| Quick Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.64 | 1.80 | 1.79 | 1.48 | — | — | |
| Quick Ratio, Industry | |||||||
| Information Technology | 1.15 | 1.38 | 1.59 | 1.54 | — | — | |
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
Quick ratio = Total quick assets ÷ Current liabilities
= 1,392,000 ÷ 1,399,000 = 0.99
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Quick ratio | A liquidity ratio calculated as (cash plus short-term marketable investments plus receivables) divided by current liabilities. | Microchip Technology Inc. quick ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Cash Ratio
Microchip Technology Inc., cash ratio calculation, comparison to benchmarks
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Cash and cash equivalents | 317,400) | 280,000) | 401,000) | 428,600) | 901,300) | 908,684) | |
| Short-term investments | 2,000) | 2,000) | 2,000) | 2,300) | 1,295,300) | 394,088) | |
| Total cash assets | 319,400) | 282,000) | 403,000) | 430,900) | 2,196,600) | 1,302,772) | |
| Current liabilities | 1,399,000) | 2,409,600) | 1,637,400) | 2,374,500) | 2,017,400) | 704,450) | |
| Liquidity Ratio | |||||||
| Cash ratio1 | 0.23 | 0.12 | 0.25 | 0.18 | 1.09 | 1.85 | |
| Benchmarks | |||||||
| Cash Ratio, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.92 | 0.85 | 0.95 | 0.64 | — | — | |
| Analog Devices Inc. | 0.60 | 0.71 | 0.77 | 0.43 | 0.58 | — | |
| Applied Materials Inc. | 0.35 | 0.86 | 1.29 | 0.81 | 0.99 | — | |
| Broadcom Inc. | 1.76 | 1.94 | 1.20 | 0.73 | 1.84 | — | |
| First Solar Inc. | 2.48 | 2.51 | 2.06 | 1.64 | — | — | |
| Intel Corp. | 0.88 | 1.03 | 0.97 | 0.59 | — | — | |
| KLA Corp. | 0.94 | 1.19 | 1.17 | 0.98 | — | — | |
| Lam Research Corp. | 0.77 | 1.25 | 1.55 | 1.54 | — | — | |
| Micron Technology Inc. | 1.24 | 1.34 | 1.23 | 1.24 | — | — | |
| NVIDIA Corp. | 4.89 | 2.95 | 6.11 | 5.58 | — | — | |
| Qualcomm Inc. | 0.54 | 1.04 | 1.29 | 1.37 | — | — | |
| Texas Instruments Inc. | 3.04 | 3.79 | 2.75 | 2.54 | — | — | |
| Cash Ratio, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.16 | 1.31 | 1.33 | 1.04 | — | — | |
| Cash Ratio, Industry | |||||||
| Information Technology | 0.72 | 0.96 | 1.18 | 1.10 | — | — | |
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
Cash ratio = Total cash assets ÷ Current liabilities
= 319,400 ÷ 1,399,000 = 0.23
2 Click competitor name to see calculations.
| Liquidity ratio | Description | The company |
|---|---|---|
| Cash ratio | A liquidity ratio calculated as (cash plus short-term marketable investments) divided by current liabilities. | Microchip Technology Inc. cash ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 not reaching 2020 level. |