Analysis of Solvency Ratios
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
Solvency Ratios (Summary)
Microchip Technology Inc., solvency 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).
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Microchip Technology Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Microchip Technology Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Microchip Technology Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Microchip Technology Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Microchip Technology Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Microchip Technology Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Microchip Technology Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Microchip Technology Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Microchip Technology Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity
Microchip Technology Inc., debt to equity 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 portion of long-term debt | —) | 1,322,900) | 608,800) | 1,360,800) | 1,309,900) | 49,952) | |
| Long-term debt excluding current maturities | 7,687,400) | 7,581,200) | 8,873,400) | 8,946,200) | 1,758,400) | 2,900,524) | |
| 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 | |
| Benchmarks | |||||||
| Debt to Equity, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.05 | 0.04 | 0.06 | 0.17 | — | — | |
| Analog Devices Inc. | 0.18 | 0.18 | 0.43 | 0.47 | — | — | |
| Applied Materials Inc. | 0.45 | 0.45 | 0.52 | 0.65 | — | — | |
| Broadcom Inc. | 1.74 | 1.59 | 1.72 | 1.32 | — | — | |
| Intel Corp. | 0.41 | 0.40 | 0.45 | 0.37 | — | — | |
| KLA Corp. | 4.75 | 1.02 | 1.30 | 1.29 | — | — | |
| Lam Research Corp. | 0.80 | 0.83 | 1.12 | 0.96 | — | — | |
| Micron Technology Inc. | 0.14 | 0.15 | 0.17 | 0.16 | — | — | |
| Monolithic Power Systems Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| NVIDIA Corp. | 0.41 | 0.41 | 0.16 | 0.21 | — | — | |
| Qualcomm Inc. | 0.86 | 1.58 | 2.59 | 3.25 | — | — | |
| Texas Instruments Inc. | 0.60 | 0.58 | 0.74 | 0.65 | — | — | |
| Debt to Equity, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.43 | 0.50 | 0.62 | — | — | — | |
| Debt to Equity, Industry | |||||||
| Information Technology | 0.70 | 0.83 | 0.97 | — | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio | A solvency ratio calculated as total debt divided by total shareholders’ equity. | Microchip Technology Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Equity (including Operating Lease Liability)
Microchip Technology Inc., debt to equity (including operating lease liability) 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 portion of long-term debt | —) | 1,322,900) | 608,800) | 1,360,800) | 1,309,900) | 49,952) | |
| Long-term debt excluding current maturities | 7,687,400) | 7,581,200) | 8,873,400) | 8,946,200) | 1,758,400) | 2,900,524) | |
| Total debt | 7,687,400) | 8,904,100) | 9,482,200) | 10,307,000) | 3,068,300) | 2,950,476) | |
| Current portion of operating lease liabilities | 33,800) | 39,800) | 44,500) | —) | —) | —) | |
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | 128,900) | 125,400) | 94,700) | —) | —) | —) | |
| Total debt (including operating lease liability) | 7,850,100) | 9,069,300) | 9,621,400) | 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 equity (including operating lease liability)1 | 1.33 | 1.70 | 1.72 | 1.95 | 0.94 | 0.90 | |
| Benchmarks | |||||||
| Debt to Equity (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.05 | 0.10 | 0.10 | 0.26 | — | — | |
| Analog Devices Inc. | 0.19 | 0.19 | 0.46 | 0.47 | — | — | |
| Applied Materials Inc. | 0.48 | 0.47 | 0.54 | 0.65 | — | — | |
| Broadcom Inc. | 1.76 | 1.61 | 1.75 | 1.32 | — | — | |
| Intel Corp. | 0.42 | 0.40 | 0.46 | 0.38 | — | — | |
| KLA Corp. | 4.83 | 1.05 | 1.34 | 1.29 | — | — | |
| Lam Research Corp. | 0.83 | 0.86 | 1.16 | 0.96 | — | — | |
| Micron Technology Inc. | 0.15 | 0.17 | 0.19 | 0.16 | — | — | |
| Monolithic Power Systems Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| NVIDIA Corp. | 0.44 | 0.46 | 0.22 | 0.21 | — | — | |
| Qualcomm Inc. | 0.90 | 1.64 | 2.67 | 3.25 | — | — | |
| Texas Instruments Inc. | 0.63 | 0.62 | 0.77 | 0.69 | — | — | |
| Debt to Equity (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.45 | 0.52 | 0.64 | — | — | — | |
| Debt to Equity (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.77 | 0.90 | 1.04 | — | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= 7,850,100 ÷ 5,894,800 = 1.33
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to equity ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity. | Microchip Technology Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital
Microchip Technology Inc., debt to capital 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 portion of long-term debt | —) | 1,322,900) | 608,800) | 1,360,800) | 1,309,900) | 49,952) | |
| Long-term debt excluding current maturities | 7,687,400) | 7,581,200) | 8,873,400) | 8,946,200) | 1,758,400) | 2,900,524) | |
| 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) | |
| 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 | |
| Benchmarks | |||||||
| Debt to Capital, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.04 | 0.04 | 0.05 | 0.15 | — | — | |
| Analog Devices Inc. | 0.15 | 0.15 | 0.30 | 0.32 | — | — | |
| Applied Materials Inc. | 0.31 | 0.31 | 0.34 | 0.39 | — | — | |
| Broadcom Inc. | 0.64 | 0.61 | 0.63 | 0.57 | — | — | |
| Intel Corp. | 0.29 | 0.29 | 0.31 | 0.27 | — | — | |
| KLA Corp. | 0.83 | 0.50 | 0.57 | 0.56 | — | — | |
| Lam Research Corp. | 0.44 | 0.45 | 0.53 | 0.49 | — | — | |
| Micron Technology Inc. | 0.12 | 0.13 | 0.15 | 0.14 | — | — | |
| Monolithic Power Systems Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| NVIDIA Corp. | 0.29 | 0.29 | 0.14 | 0.18 | — | — | |
| Qualcomm Inc. | 0.46 | 0.61 | 0.72 | 0.76 | — | — | |
| Texas Instruments Inc. | 0.37 | 0.37 | 0.43 | 0.39 | — | — | |
| Debt to Capital, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.30 | 0.33 | 0.38 | — | — | — | |
| Debt to Capital, Industry | |||||||
| Information Technology | 0.41 | 0.45 | 0.49 | — | — | — | |
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 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio | A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity. | Microchip Technology Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Capital (including Operating Lease Liability)
Microchip Technology Inc., debt to capital (including operating lease liability) 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 portion of long-term debt | —) | 1,322,900) | 608,800) | 1,360,800) | 1,309,900) | 49,952) | |
| Long-term debt excluding current maturities | 7,687,400) | 7,581,200) | 8,873,400) | 8,946,200) | 1,758,400) | 2,900,524) | |
| Total debt | 7,687,400) | 8,904,100) | 9,482,200) | 10,307,000) | 3,068,300) | 2,950,476) | |
| Current portion of operating lease liabilities | 33,800) | 39,800) | 44,500) | —) | —) | —) | |
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | 128,900) | 125,400) | 94,700) | —) | —) | —) | |
| Total debt (including operating lease liability) | 7,850,100) | 9,069,300) | 9,621,400) | 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) | |
| Total capital (including operating lease liability) | 13,744,900) | 14,406,400) | 15,206,900) | 15,594,500) | 6,348,100) | 6,221,187) | |
| Solvency Ratio | |||||||
| Debt to capital (including operating lease liability)1 | 0.57 | 0.63 | 0.63 | 0.66 | 0.48 | 0.47 | |
| Benchmarks | |||||||
| Debt to Capital (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.05 | 0.09 | 0.09 | 0.20 | — | — | |
| Analog Devices Inc. | 0.16 | 0.16 | 0.31 | 0.32 | — | — | |
| Applied Materials Inc. | 0.32 | 0.32 | 0.35 | 0.39 | — | — | |
| Broadcom Inc. | 0.64 | 0.62 | 0.64 | 0.57 | — | — | |
| Intel Corp. | 0.30 | 0.29 | 0.31 | 0.28 | — | — | |
| KLA Corp. | 0.83 | 0.51 | 0.57 | 0.56 | — | — | |
| Lam Research Corp. | 0.45 | 0.46 | 0.54 | 0.49 | — | — | |
| Micron Technology Inc. | 0.13 | 0.14 | 0.16 | 0.14 | — | — | |
| Monolithic Power Systems Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| NVIDIA Corp. | 0.31 | 0.31 | 0.18 | 0.18 | — | — | |
| Qualcomm Inc. | 0.47 | 0.62 | 0.73 | 0.76 | — | — | |
| Texas Instruments Inc. | 0.39 | 0.38 | 0.44 | 0.41 | — | — | |
| Debt to Capital (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.31 | 0.34 | 0.39 | — | — | — | |
| Debt to Capital (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.43 | 0.47 | 0.51 | — | — | — | |
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 (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= 7,850,100 ÷ 13,744,900 = 0.57
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to capital ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity. | Microchip Technology Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets
Microchip Technology Inc., debt to assets 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 portion of long-term debt | —) | 1,322,900) | 608,800) | 1,360,800) | 1,309,900) | 49,952) | |
| Long-term debt excluding current maturities | 7,687,400) | 7,581,200) | 8,873,400) | 8,946,200) | 1,758,400) | 2,900,524) | |
| Total debt | 7,687,400) | 8,904,100) | 9,482,200) | 10,307,000) | 3,068,300) | 2,950,476) | |
| Total assets | 16,199,500) | 16,478,800) | 17,426,100) | 18,350,000) | 8,257,200) | 7,686,881) | |
| Solvency Ratio | |||||||
| Debt to assets1 | 0.47 | 0.54 | 0.54 | 0.56 | 0.37 | 0.38 | |
| Benchmarks | |||||||
| Debt to Assets, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.04 | 0.03 | 0.04 | 0.08 | — | — | |
| Analog Devices Inc. | 0.13 | 0.13 | 0.24 | 0.26 | — | — | |
| Applied Materials Inc. | 0.20 | 0.21 | 0.24 | 0.28 | — | — | |
| Broadcom Inc. | 0.54 | 0.53 | 0.54 | 0.49 | — | — | |
| Intel Corp. | 0.23 | 0.23 | 0.24 | 0.21 | — | — | |
| KLA Corp. | 0.53 | 0.34 | 0.37 | 0.38 | — | — | |
| Lam Research Corp. | 0.29 | 0.31 | 0.40 | 0.37 | — | — | |
| Micron Technology Inc. | 0.10 | 0.12 | 0.12 | 0.12 | — | — | |
| Monolithic Power Systems Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| NVIDIA Corp. | 0.25 | 0.24 | 0.11 | 0.15 | — | — | |
| Qualcomm Inc. | 0.32 | 0.38 | 0.44 | 0.48 | — | — | |
| Texas Instruments Inc. | 0.32 | 0.31 | 0.35 | 0.32 | — | — | |
| Debt to Assets, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.24 | 0.26 | 0.30 | — | — | — | |
| Debt to Assets, Industry | |||||||
| Information Technology | 0.26 | 0.29 | 0.31 | — | — | — | |
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 assets = Total debt ÷ Total assets
= 7,687,400 ÷ 16,199,500 = 0.47
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio | A solvency ratio calculated as total debt divided by total assets. | Microchip Technology Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022. |
Debt to Assets (including Operating Lease Liability)
Microchip Technology Inc., debt to assets (including operating lease liability) 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 portion of long-term debt | —) | 1,322,900) | 608,800) | 1,360,800) | 1,309,900) | 49,952) | |
| Long-term debt excluding current maturities | 7,687,400) | 7,581,200) | 8,873,400) | 8,946,200) | 1,758,400) | 2,900,524) | |
| Total debt | 7,687,400) | 8,904,100) | 9,482,200) | 10,307,000) | 3,068,300) | 2,950,476) | |
| Current portion of operating lease liabilities | 33,800) | 39,800) | 44,500) | —) | —) | —) | |
| Non-current portion of operating lease liabilities (included in Other long-term liabilities) | 128,900) | 125,400) | 94,700) | —) | —) | —) | |
| Total debt (including operating lease liability) | 7,850,100) | 9,069,300) | 9,621,400) | 10,307,000) | 3,068,300) | 2,950,476) | |
| Total assets | 16,199,500) | 16,478,800) | 17,426,100) | 18,350,000) | 8,257,200) | 7,686,881) | |
| Solvency Ratio | |||||||
| Debt to assets (including operating lease liability)1 | 0.48 | 0.55 | 0.55 | 0.56 | 0.37 | 0.38 | |
| Benchmarks | |||||||
| Debt to Assets (including Operating Lease Liability), Competitors2 | |||||||
| Advanced Micro Devices Inc. | 0.04 | 0.06 | 0.06 | 0.12 | — | — | |
| Analog Devices Inc. | 0.14 | 0.14 | 0.25 | 0.26 | — | — | |
| Applied Materials Inc. | 0.22 | 0.22 | 0.26 | 0.28 | — | — | |
| Broadcom Inc. | 0.55 | 0.53 | 0.55 | 0.49 | — | — | |
| Intel Corp. | 0.23 | 0.23 | 0.24 | 0.22 | — | — | |
| KLA Corp. | 0.54 | 0.35 | 0.38 | 0.38 | — | — | |
| Lam Research Corp. | 0.30 | 0.33 | 0.41 | 0.37 | — | — | |
| Micron Technology Inc. | 0.11 | 0.12 | 0.13 | 0.12 | — | — | |
| Monolithic Power Systems Inc. | 0.00 | 0.00 | 0.00 | 0.00 | — | — | |
| NVIDIA Corp. | 0.27 | 0.27 | 0.15 | 0.15 | — | — | |
| Qualcomm Inc. | 0.33 | 0.40 | 0.46 | 0.48 | — | — | |
| Texas Instruments Inc. | 0.34 | 0.33 | 0.37 | 0.34 | — | — | |
| Debt to Assets (including Operating Lease Liability), Sector | |||||||
| Semiconductors & Semiconductor Equipment | 0.25 | 0.27 | 0.31 | — | — | — | |
| Debt to Assets (including Operating Lease Liability), Industry | |||||||
| Information Technology | 0.29 | 0.31 | 0.33 | — | — | — | |
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 assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= 7,850,100 ÷ 16,199,500 = 0.48
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Debt to assets ratio (including operating lease liability) | A solvency ratio calculated as total debt (including operating lease liability) divided by total assets. | Microchip Technology Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022. |
Financial Leverage
Microchip Technology Inc., financial leverage 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) | |||||||
| 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 | |
| Benchmarks | |||||||
| Financial Leverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 1.23 | 1.66 | 1.54 | 2.13 | — | — | |
| Analog Devices Inc. | 1.38 | 1.38 | 1.79 | 1.83 | — | — | |
| Applied Materials Inc. | 2.19 | 2.11 | 2.11 | 2.32 | — | — | |
| Broadcom Inc. | 3.23 | 3.03 | 3.18 | 2.71 | — | — | |
| Intel Corp. | 1.80 | 1.77 | 1.89 | 1.76 | — | — | |
| KLA Corp. | 8.99 | 3.04 | 3.48 | 3.39 | — | — | |
| Lam Research Corp. | 2.74 | 2.64 | 2.81 | 2.57 | — | — | |
| Micron Technology Inc. | 1.33 | 1.34 | 1.38 | 1.36 | — | — | |
| Monolithic Power Systems Inc. | 1.23 | 1.27 | 1.25 | 1.24 | — | — | |
| NVIDIA Corp. | 1.66 | 1.70 | 1.42 | 1.42 | — | — | |
| Qualcomm Inc. | 2.72 | 4.14 | 5.86 | 6.71 | — | — | |
| Texas Instruments Inc. | 1.87 | 1.85 | 2.11 | 2.02 | — | — | |
| Financial Leverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 1.79 | 1.89 | 2.07 | — | — | — | |
| Financial Leverage, Industry | |||||||
| Information Technology | 2.68 | 2.89 | 3.12 | — | — | — | |
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
Financial leverage = Total assets ÷ Stockholders’ equity
= 16,199,500 ÷ 5,894,800 = 2.75
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Financial leverage ratio | A solvency ratio calculated as total assets divided by total shareholders’ equity. | Microchip Technology Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Interest Coverage
Microchip Technology Inc., interest coverage 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) | |||||||
| Net income | 1,285,500) | 349,400) | 570,600) | 355,900) | 255,400) | 164,639) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | —) | (5,953) | |
| Add: Income tax expense | 197,000) | (9,900) | (420,200) | (151,400) | 481,900) | (80,805) | |
| Add: Interest expense | 257,000) | 356,900) | 497,300) | 502,900) | 199,000) | 146,346) | |
| Earnings before interest and tax (EBIT) | 1,739,500) | 696,400) | 647,700) | 707,400) | 936,300) | 236,133) | |
| Solvency Ratio | |||||||
| Interest coverage1 | 6.77 | 1.95 | 1.30 | 1.41 | 4.71 | 1.61 | |
| Benchmarks | |||||||
| Interest Coverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 14.61 | 109.09 | 28.23 | 4.96 | — | — | |
| Analog Devices Inc. | 16.46 | 8.19 | 7.79 | 7.49 | — | — | |
| Applied Materials Inc. | 34.33 | 29.69 | 18.36 | 14.79 | — | — | |
| Broadcom Inc. | 8.16 | 4.59 | 2.37 | 2.54 | — | — | |
| Intel Corp. | 16.66 | 37.35 | 40.87 | 50.20 | — | — | |
| KLA Corp. | 22.76 | 16.00 | 9.22 | 11.40 | — | — | |
| Lam Research Corp. | 29.11 | 21.95 | 15.51 | 21.86 | — | — | |
| Micron Technology Inc. | 51.66 | 35.18 | 16.41 | 56.09 | — | — | |
| Monolithic Power Systems Inc. | — | — | — | — | — | — | |
| NVIDIA Corp. | 43.12 | 24.96 | 58.12 | 68.17 | — | — | |
| Qualcomm Inc. | 31.61 | 19.38 | 10.50 | 12.93 | — | — | |
| Texas Instruments Inc. | 47.88 | 49.47 | 32.67 | 34.69 | — | — | |
| Interest Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 21.33 | 18.47 | 14.15 | — | — | — | |
| Interest Coverage, Industry | |||||||
| Information Technology | 22.78 | 20.06 | 14.26 | — | — | — | |
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
Interest coverage = EBIT ÷ Interest expense
= 1,739,500 ÷ 257,000 = 6.77
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Interest coverage ratio | A solvency ratio calculated as EBIT divided by interest payments. | Microchip Technology Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |
Fixed Charge Coverage
Microchip Technology Inc., fixed charge coverage 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) | |||||||
| Net income | 1,285,500) | 349,400) | 570,600) | 355,900) | 255,400) | 164,639) | |
| Less: Net loss from discontinued operations | —) | —) | —) | —) | —) | (5,953) | |
| Add: Income tax expense | 197,000) | (9,900) | (420,200) | (151,400) | 481,900) | (80,805) | |
| Add: Interest expense | 257,000) | 356,900) | 497,300) | 502,900) | 199,000) | 146,346) | |
| Earnings before interest and tax (EBIT) | 1,739,500) | 696,400) | 647,700) | 707,400) | 936,300) | 236,133) | |
| Add: Operating lease expense | 58,400) | 63,100) | 70,400) | 50,900) | 30,000) | 35,400) | |
| Earnings before fixed charges and tax | 1,797,900) | 759,500) | 718,100) | 758,300) | 966,300) | 271,533) | |
| Interest expense | 257,000) | 356,900) | 497,300) | 502,900) | 199,000) | 146,346) | |
| Operating lease expense | 58,400) | 63,100) | 70,400) | 50,900) | 30,000) | 35,400) | |
| Fixed charges | 315,400) | 420,000) | 567,700) | 553,800) | 229,000) | 181,746) | |
| Solvency Ratio | |||||||
| Fixed charge coverage1 | 5.70 | 1.81 | 1.26 | 1.37 | 4.22 | 1.49 | |
| Benchmarks | |||||||
| Fixed Charge Coverage, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 6.82 | 36.00 | 13.08 | 3.48 | — | — | |
| Analog Devices Inc. | 12.87 | 6.64 | 6.48 | 5.62 | — | — | |
| Applied Materials Inc. | 24.67 | 22.50 | 14.48 | 12.35 | — | — | |
| Broadcom Inc. | 6.55 | 3.70 | 1.92 | 2.27 | — | — | |
| Intel Corp. | 7.34 | 16.56 | 25.00 | 36.69 | — | — | |
| KLA Corp. | 18.72 | 13.03 | 7.74 | 10.39 | — | — | |
| Lam Research Corp. | 21.44 | 17.80 | 12.52 | 17.83 | — | — | |
| Micron Technology Inc. | 31.49 | 22.49 | 11.10 | 32.90 | — | — | |
| Monolithic Power Systems Inc. | 195.13 | 111.93 | 114.81 | 75.96 | — | — | |
| NVIDIA Corp. | 25.61 | 14.40 | 18.89 | 29.23 | — | — | |
| Qualcomm Inc. | 22.52 | 14.48 | 8.30 | 10.68 | — | — | |
| Texas Instruments Inc. | 36.70 | 36.25 | 24.14 | 25.27 | — | — | |
| Fixed Charge Coverage, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 14.48 | 12.79 | 10.46 | — | — | — | |
| Fixed Charge Coverage, Industry | |||||||
| Information Technology | 13.53 | 12.31 | 9.12 | — | — | — | |
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
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= 1,797,900 ÷ 315,400 = 5.70
2 Click competitor name to see calculations.
| Solvency ratio | Description | The company |
|---|---|---|
| Fixed charge coverage ratio | A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges. | Microchip Technology Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022. |