Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

Analysis of Short-term (Operating) Activity Ratios
Quarterly Data

Microsoft Excel

Short-term Activity Ratios (Summary)

Microchip Technology Inc., short-term (operating) activity ratios (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Turnover Ratios
Inventory turnover 2.27 2.48 2.70 2.78 2.98 3.07 3.09 3.10 3.05 3.07 3.10 2.96 2.86 2.89 3.21 3.40 3.27 2.50 1.58 3.28 3.17 3.34 3.72 3.96
Receivables turnover 6.85 6.74 6.30 6.36 6.93 6.13 5.69 5.45 5.93 5.79 5.88 5.65 6.54 6.32 5.83 6.07 9.22 6.94 5.35 7.06 7.02 6.82 6.77 7.12
Payables turnover 7.47 6.73 8.08 6.88 7.59 7.24 7.42 7.04 7.82 9.35 9.65 8.23 9.69 9.01 9.59 10.68 9.73 7.70 5.48 10.83 9.48 8.35 9.24 11.06
Working capital turnover 6.58 55.51 6.23 6.47 6.56 5.88 5.34 35.62 9.10 4.07 52.68 6.22 2.97 2.59 2.18 2.29 2.13
Average No. Days
Average inventory processing period 160 147 135 132 123 119 118 118 120 119 118 123 128 126 114 107 112 146 231 111 115 109 98 92
Add: Average receivable collection period 53 54 58 57 53 60 64 67 62 63 62 65 56 58 63 60 40 53 68 52 52 53 54 51
Operating cycle 213 201 193 189 176 179 182 185 182 182 180 188 184 184 177 167 152 199 299 163 167 162 152 143
Less: Average payables payment period 49 54 45 53 48 50 49 52 47 39 38 44 38 41 38 34 38 47 67 34 38 44 40 33
Cash conversion cycle 164 147 148 136 128 129 133 133 135 143 142 144 146 143 139 133 114 152 232 129 129 118 112 110

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Microchip Technology Inc. inventory turnover ratio deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Receivables turnover An activity ratio equal to revenue divided by receivables. Microchip Technology Inc. receivables turnover ratio improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Microchip Technology Inc. payables turnover ratio decreased from Q1 2023 to Q2 2023 but then increased from Q2 2023 to Q3 2023 not reaching Q1 2023 level.
Working capital turnover An activity ratio calculated as revenue divided by working capital. Microchip Technology Inc. working capital turnover ratio improved from Q1 2023 to Q2 2023 but then slightly deteriorated from Q2 2023 to Q3 2023 not reaching Q1 2023 level.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Microchip Technology Inc. number of days of inventory outstanding deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Microchip Technology Inc. number of days of receivables outstanding improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Operating cycle Equal to average inventory processing period plus average receivables collection period. Microchip Technology Inc. operating cycle deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Microchip Technology Inc. number of days of payables outstanding increased from Q1 2023 to Q2 2023 but then slightly decreased from Q2 2023 to Q3 2023 not reaching Q1 2023 level.
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Microchip Technology Inc. cash conversion cycle improved from Q1 2023 to Q2 2023 but then deteriorated significantly from Q2 2023 to Q3 2023.

Inventory Turnover

Microchip Technology Inc., inventory turnover calculation (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Cost of sales 698,400 675,300 653,700 623,800 604,200 581,500 561,800 540,300 506,300 501,600 511,400 512,500 501,900 510,300 507,400 509,400 595,100 743,200 570,500 387,207 387,146 398,045 387,702 369,840 369,107 460,743 450,921
Inventories 1,165,400 1,030,300 911,800 854,400 768,200 713,600 683,800 665,000 666,100 661,400 657,200 685,700 708,800 734,200 733,100 711,700 702,500 836,700 1,104,800 476,200 487,065 456,939 426,843 417,202 419,618 424,690 518,431
Short-term Activity Ratio
Inventory turnover1 2.27 2.48 2.70 2.78 2.98 3.07 3.09 3.10 3.05 3.07 3.10 2.96 2.86 2.89 3.21 3.40 3.27 2.50 1.58 3.28 3.17 3.34 3.72 3.96
Benchmarks
Inventory Turnover, Competitors2
Advanced Micro Devices Inc. 2.74 2.70 3.05 3.45 3.62 4.24 4.00 4.35 4.15 4.10 3.81 3.87 3.72 3.21 3.86 3.93
Analog Devices Inc. 2.61 2.68 2.84 3.20 3.82 3.78 3.66 2.33 3.16 3.16 3.18 3.14 3.12 3.23 3.28 3.24 3.10 3.29 3.35 3.35
Applied Materials Inc. 2.45 2.41 2.32 2.33 2.42 2.60 2.79 2.82 2.80 2.65 2.55 2.44 2.30 2.32 2.43 2.37 2.36 2.39 2.50 2.54
Broadcom Inc. 6.10 6.00 5.98 5.77 5.92 6.40 6.95 8.18 9.10 10.44 11.01 10.34 9.51 10.76 10.73 11.57 9.16 9.63 9.31 9.00
First Solar Inc. 2.61 3.29 3.50 4.10 2.80 2.62 2.30 3.29 3.06 3.58 4.01 3.58 4.66 4.67 5.05 5.67
Intel Corp. 2.85 2.78 2.68 2.74 2.90 3.02 2.97 3.27 3.50 3.91 4.15 4.06 3.66 3.71 3.32 3.41
KLA Corp. 1.54 1.63 1.59 1.67 1.71 1.75 1.73 1.76 1.81 1.76 1.77 1.87 1.91 1.85 1.67 1.48
Lam Research Corp. 2.14 2.16 2.24 2.36 2.60 2.89 2.95 2.91 2.78 2.71 2.77 2.86 3.11 3.42 3.51 3.44
Micron Technology Inc. 2.01 2.06 1.91 2.53 3.06 3.14 3.60 3.85 3.73 3.43 2.74 2.65 2.66 2.62 2.67 2.48
NVIDIA Corp. 2.70 3.02 3.25 3.62 3.87 3.75 3.63 3.44 3.69 3.47 3.81 4.24 3.88 3.50 3.04 2.89
Qualcomm Inc. 2.54 2.61 2.65 2.94 3.27 3.58 3.90 4.42 4.18 4.41 4.17 3.56 3.67 5.08 6.00 6.14
Texas Instruments Inc. 1.65 1.70 1.92 2.27 2.56 2.74 2.88 3.12 3.18 3.12 2.88 2.66 2.42 2.33 2.56 2.61

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Inventory turnover = (Cost of salesQ3 2023 + Cost of salesQ2 2023 + Cost of salesQ1 2023 + Cost of salesQ4 2022) ÷ Inventories
= (698,400 + 675,300 + 653,700 + 623,800) ÷ 1,165,400 = 2.27

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Inventory turnover An activity ratio calculated as cost of goods sold divided by inventory. Microchip Technology Inc. inventory turnover ratio deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Receivables Turnover

Microchip Technology Inc., receivables turnover calculation (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Net sales 2,169,200 2,073,200 1,963,600 1,844,200 1,757,500 1,649,800 1,569,400 1,467,100 1,352,100 1,309,500 1,309,700 1,326,400 1,287,400 1,337,800 1,322,600 1,329,800 1,374,700 1,432,500 1,212,500 1,002,315 994,205 1,012,139 972,141 902,666 834,366 871,364 799,411
Accounts receivable, net 1,175,000 1,133,200 1,145,000 1,072,600 930,100 985,600 1,000,700 997,700 893,800 903,700 894,300 934,000 807,500 848,600 936,800 880,600 544,800 668,800 789,400 563,700 553,135 545,416 528,954 478,373 475,093 451,042 435,511
Short-term Activity Ratio
Receivables turnover1 6.85 6.74 6.30 6.36 6.93 6.13 5.69 5.45 5.93 5.79 5.88 5.65 6.54 6.32 5.83 6.07 9.22 6.94 5.35 7.06 7.02 6.82 6.77 7.12
Benchmarks
Receivables Turnover, Competitors2
Advanced Micro Devices Inc. 4.37 5.07 5.71 5.72 5.26 5.33 5.13 6.07 6.68 6.60 5.24 4.73 4.05 4.27 4.28 3.62
Analog Devices Inc. 7.94 7.96 7.72 6.67 6.37 6.07 5.16 5.02 7.90 7.62 7.08 7.60 8.10 9.42 9.85 9.43 8.91 9.09 8.72 9.69
Applied Materials Inc. 5.08 4.83 4.88 4.25 5.08 5.09 5.49 4.66 5.66 5.87 5.98 5.81 5.80 5.88 5.61 5.77 6.27 6.97 6.87 6.73
Broadcom Inc. 12.17 11.56 10.64 11.22 11.70 9.73 11.23 13.25 11.87 10.54 9.78 10.40 8.64 7.13 6.21 6.93 6.29 6.26 5.80 6.27
First Solar Inc. 4.20 4.74 9.38 8.08 7.76 5.45 8.48 6.81 10.57 5.09 3.77 10.19 16.00 10.85 10.55 6.45
Intel Corp. 18.59 18.04 14.66 15.26 9.31 12.11 10.98 8.36 9.34 10.40 10.78 11.48 10.94 10.61 8.96 9.40
KLA Corp. 5.48 4.59 5.30 5.08 5.34 4.72 5.10 5.30 5.37 4.98 5.77 5.24 5.01 4.43 4.59 4.61
Lam Research Corp. 5.78 4.68 3.94 3.99 4.52 4.86 4.64 4.83 4.72 4.11 4.77 4.79 4.39 4.70 5.80 6.63
Micron Technology Inc. 7.48 10.12 8.18 6.00 5.20 5.79 5.64 5.22 6.02 7.01 5.98 5.48 5.62 6.43 6.04 7.33
NVIDIA Corp. 5.82 5.59 5.43 5.79 6.14 6.11 6.37 6.86 5.80 6.27 6.18 6.59 6.89 6.52 8.64 8.23
Texas Instruments Inc. 9.17 9.62 10.39 10.57 9.90 8.95 10.56 10.78 10.64 10.54 9.74 10.23 9.87 11.64 10.73 13.39

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Receivables turnover = (Net salesQ3 2023 + Net salesQ2 2023 + Net salesQ1 2023 + Net salesQ4 2022) ÷ Accounts receivable, net
= (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200) ÷ 1,175,000 = 6.85

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Receivables turnover An activity ratio equal to revenue divided by receivables. Microchip Technology Inc. receivables turnover ratio improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Payables Turnover

Microchip Technology Inc., payables turnover calculation (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Cost of sales 698,400 675,300 653,700 623,800 604,200 581,500 561,800 540,300 506,300 501,600 511,400 512,500 501,900 510,300 507,400 509,400 595,100 743,200 570,500 387,207 387,146 398,045 387,702 369,840 369,107 460,743 450,921
Accounts payable 354,800 379,800 304,700 344,700 301,300 302,600 284,400 292,400 259,800 216,900 211,100 246,800 209,300 235,600 245,700 226,400 236,000 271,200 318,200 144,100 162,718 182,599 171,857 149,233 135,160 131,625 137,614
Short-term Activity Ratio
Payables turnover1 7.47 6.73 8.08 6.88 7.59 7.24 7.42 7.04 7.82 9.35 9.65 8.23 9.69 9.01 9.59 10.68 9.73 7.70 5.48 10.83 9.48 8.35 9.24 11.06
Benchmarks
Payables Turnover, Competitors2
Advanced Micro Devices Inc. 5.42 4.43 5.13 5.21 5.22 7.39 6.58 6.44 7.54 8.66 6.64 11.57 6.38 5.30 6.25 3.91
Analog Devices Inc. 7.62 7.76 8.09 7.70 8.43 9.01 8.17 6.30 7.82 7.25 8.66 8.42 8.85 9.83 9.12 8.78 8.99 9.60 8.92 7.54
Broadcom Inc. 11.34 13.62 12.31 11.13 15.27 9.98 9.80 9.77 10.91 12.63 11.67 12.41 9.41 8.33 10.28 11.83 10.04 13.13 13.55 12.47
First Solar Inc. 20.79 10.11 9.20 7.47 12.05 13.17 13.20 11.34 11.66 14.55 11.86 11.08 17.20 15.25 13.95 11.53
Intel Corp. 3.77 3.81 4.30 3.77 5.21 4.63 4.92 6.13 5.05 5.82 6.49 6.14 6.58 6.59 6.61 7.23
KLA Corp. 10.30 7.77 7.96 8.10 7.98 8.43 7.79 8.10 8.88 9.53 9.69 9.27 9.95 9.03 9.45 9.24
Lam Research Corp. 17.34 11.33 8.52 9.25 8.99 9.31 10.12 9.43 9.33 8.82 8.94 9.18 10.43 11.56 12.52 14.06
NVIDIA Corp. 8.08 4.86 5.13 5.29 5.19 5.38 5.94 5.23 5.03 5.44 5.65 6.04 6.87 9.66 11.77 8.89
Qualcomm Inc. 9.67 12.50 7.17 4.91 4.72 4.37 4.28 5.19 4.83 4.62 4.38 4.12 4.21 4.19 4.96 6.29
Texas Instruments Inc. 9.03 6.87 6.63 7.35 7.89 8.46 9.27 9.14 9.93 9.86 9.60 12.51 12.20 12.17 14.12 13.45

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Payables turnover = (Cost of salesQ3 2023 + Cost of salesQ2 2023 + Cost of salesQ1 2023 + Cost of salesQ4 2022) ÷ Accounts payable
= (698,400 + 675,300 + 653,700 + 623,800) ÷ 354,800 = 7.47

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Payables turnover An activity ratio calculated as cost of goods sold divided by payables. Microchip Technology Inc. payables turnover ratio decreased from Q1 2023 to Q2 2023 but then increased from Q2 2023 to Q3 2023 not reaching Q1 2023 level.

Working Capital Turnover

Microchip Technology Inc., working capital turnover calculation (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data (US$ in thousands)
Current assets 2,833,700 2,676,000 2,643,200 2,452,600 2,200,500 2,149,100 2,157,100 2,145,200 2,152,500 2,122,100 2,135,000 2,217,200 2,104,000 2,177,800 2,278,500 2,214,800 1,877,600 2,176,200 2,818,400 3,356,300 2,253,441 2,443,422 2,298,762 2,305,040 1,676,750 1,490,735 1,672,988
Less: Current liabilities 1,611,100 2,538,400 1,485,400 1,399,000 1,218,700 1,121,800 1,089,100 2,409,600 2,522,200 1,975,200 2,585,800 1,637,400 2,336,600 2,423,400 2,450,800 2,374,500 643,700 2,088,100 2,139,300 2,017,400 756,832 734,186 736,443 704,450 651,553 578,803 573,285
Working capital 1,222,600 137,600 1,157,800 1,053,600 981,800 1,027,300 1,068,000 (264,400) (369,700) 146,900 (450,800) 579,800 (232,600) (245,600) (172,300) (159,700) 1,233,900 88,100 679,100 1,338,900 1,496,609 1,709,236 1,562,319 1,600,590 1,025,197 911,932 1,099,703
 
Net sales 2,169,200 2,073,200 1,963,600 1,844,200 1,757,500 1,649,800 1,569,400 1,467,100 1,352,100 1,309,500 1,309,700 1,326,400 1,287,400 1,337,800 1,322,600 1,329,800 1,374,700 1,432,500 1,212,500 1,002,315 994,205 1,012,139 972,141 902,666 834,366 871,364 799,411
Short-term Activity Ratio
Working capital turnover1 6.58 55.51 6.23 6.47 6.56 5.88 5.34 35.62 9.10 4.07 52.68 6.22 2.97 2.59 2.18 2.29 2.13
Benchmarks
Working Capital Turnover, Competitors2
Advanced Micro Devices Inc. 2.44 2.45 2.54 2.73 2.95 2.72 2.42 3.78 3.36 2.71 2.64 2.62 2.80 2.86 3.01 3.01
Analog Devices Inc. 6.41 6.13 4.61 4.81 4.94 4.23 3.50 2.81 21.89 49.24 6.18 4.86 6.92 11.81 40.91 12.57 11.74 8.72 5.48 8.78
Applied Materials Inc. 2.49 2.69 2.77 3.02 2.93 2.89 2.56 2.36 2.14 1.95 1.86 1.93 2.04 1.94 2.42 2.54 2.38 2.44 2.58 2.58
Broadcom Inc. 3.23 3.38 3.03 2.90 3.58 3.80 3.15 2.66 2.90 3.27 3.25 4.32 3.32 3.00 5.19 7.49 8.51 10.03 9.45 3.08
First Solar Inc. 1.20 1.16 1.15 0.95 1.00 0.96 1.10 1.19 1.13 1.19 1.21 1.25 1.69 1.57 1.52 1.34
Intel Corp. 3.48 3.34 2.70 3.45 3.24 3.14 2.34 2.61 2.47 3.16 3.59 3.46 5.32 3.60 4.30 8.06
KLA Corp. 2.31 2.25 2.19 2.14 2.30 2.08 2.06 1.93 1.91 1.90 1.97 1.92 2.10 1.99 2.03 1.79
Lam Research Corp. 2.03 2.08 2.10 2.23 2.18 2.01 2.04 1.80 1.72 1.51 1.41 1.31 1.32 1.62 1.49 1.56
Micron Technology Inc. 1.09 1.39 1.66 2.16 2.06 2.14 2.17 2.05 1.95 1.98 2.04 1.89 1.73 1.93 2.10 2.31
NVIDIA Corp. 1.75 1.50 1.23 1.10 1.09 1.03 1.36 1.37 1.38 1.06 0.67 0.92 0.92 1.01 1.14 1.27
Qualcomm Inc. 3.21 3.66 3.90 4.99 5.88 4.80 4.53 4.13 3.96 3.19 2.53 2.39 2.62 4.47 3.50 3.10
Texas Instruments Inc. 1.46 1.47 1.61 1.81 1.84 1.87 1.65 1.65 1.57 1.87 1.77 1.84 1.94 2.16 2.38 2.17

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Working capital turnover = (Net salesQ3 2023 + Net salesQ2 2023 + Net salesQ1 2023 + Net salesQ4 2022) ÷ Working capital
= (2,169,200 + 2,073,200 + 1,963,600 + 1,844,200) ÷ 1,222,600 = 6.58

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Working capital turnover An activity ratio calculated as revenue divided by working capital. Microchip Technology Inc. working capital turnover ratio improved from Q1 2023 to Q2 2023 but then slightly deteriorated from Q2 2023 to Q3 2023 not reaching Q1 2023 level.

Average Inventory Processing Period

Microchip Technology Inc., average inventory processing period calculation (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data
Inventory turnover 2.27 2.48 2.70 2.78 2.98 3.07 3.09 3.10 3.05 3.07 3.10 2.96 2.86 2.89 3.21 3.40 3.27 2.50 1.58 3.28 3.17 3.34 3.72 3.96
Short-term Activity Ratio (no. days)
Average inventory processing period1 160 147 135 132 123 119 118 118 120 119 118 123 128 126 114 107 112 146 231 111 115 109 98 92
Benchmarks (no. days)
Average Inventory Processing Period, Competitors2
Advanced Micro Devices Inc. 133 135 120 106 101 86 91 84 88 89 96 94 98 114 94 93
Analog Devices Inc. 140 136 129 114 96 97 100 157 115 116 115 116 117 113 111 113 118 111 109 109
Applied Materials Inc. 149 152 157 157 151 140 131 129 130 138 143 150 159 157 150 154 155 153 146 144
Broadcom Inc. 60 61 61 63 62 57 53 45 40 35 33 35 38 34 34 32 40 38 39 41
First Solar Inc. 140 111 104 89 130 140 159 111 119 102 91 102 78 78 72 64
Intel Corp. 128 131 136 133 126 121 123 112 104 93 88 90 100 98 110 107
KLA Corp. 237 225 230 218 214 208 211 207 202 207 206 195 191 197 219 247
Lam Research Corp. 171 169 163 155 140 126 124 126 131 135 132 128 117 107 104 106
Micron Technology Inc. 182 177 192 144 119 116 101 95 98 106 133 138 137 139 137 147
NVIDIA Corp. 135 121 112 101 94 97 100 106 99 105 96 86 94 104 120 126
Qualcomm Inc. 144 140 138 124 112 102 93 83 87 83 88 102 99 72 61 59
Texas Instruments Inc. 222 215 190 161 143 133 127 117 115 117 127 137 151 157 143 140

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.27 = 160

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average inventory processing period An activity ratio equal to the number of days in the period divided by inventory turnover over the period. Microchip Technology Inc. number of days of inventory outstanding deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Average Receivable Collection Period

Microchip Technology Inc., average receivable collection period calculation (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data
Receivables turnover 6.85 6.74 6.30 6.36 6.93 6.13 5.69 5.45 5.93 5.79 5.88 5.65 6.54 6.32 5.83 6.07 9.22 6.94 5.35 7.06 7.02 6.82 6.77 7.12
Short-term Activity Ratio (no. days)
Average receivable collection period1 53 54 58 57 53 60 64 67 62 63 62 65 56 58 63 60 40 53 68 52 52 53 54 51
Benchmarks (no. days)
Average Receivable Collection Period, Competitors2
Advanced Micro Devices Inc. 83 72 64 64 69 69 71 60 55 55 70 77 90 85 85 101
Analog Devices Inc. 46 46 47 55 57 60 71 73 46 48 52 48 45 39 37 39 41 40 42 38
Applied Materials Inc. 72 76 75 86 72 72 67 78 65 62 61 63 63 62 65 63 58 52 53 54
Broadcom Inc. 30 32 34 33 31 38 33 28 31 35 37 35 42 51 59 53 58 58 63 58
First Solar Inc. 87 77 39 45 47 67 43 54 35 72 97 36 23 34 35 57
Intel Corp. 20 20 25 24 39 30 33 44 39 35 34 32 33 34 41 39
KLA Corp. 67 79 69 72 68 77 72 69 68 73 63 70 73 82 80 79
Lam Research Corp. 63 78 93 91 81 75 79 76 77 89 77 76 83 78 63 55
Micron Technology Inc. 49 36 45 61 70 63 65 70 61 52 61 67 65 57 60 50
NVIDIA Corp. 63 65 67 63 59 60 57 53 63 58 59 55 53 56 42 44
Texas Instruments Inc. 40 38 35 35 37 41 35 34 34 35 37 36 37 31 34 27

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.85 = 53

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average receivable collection period An activity ratio equal to the number of days in the period divided by receivables turnover. Microchip Technology Inc. number of days of receivables outstanding improved from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Operating Cycle

Microchip Technology Inc., operating cycle calculation (quarterly data)

No. days

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data
Average inventory processing period 160 147 135 132 123 119 118 118 120 119 118 123 128 126 114 107 112 146 231 111 115 109 98 92
Average receivable collection period 53 54 58 57 53 60 64 67 62 63 62 65 56 58 63 60 40 53 68 52 52 53 54 51
Short-term Activity Ratio
Operating cycle1 213 201 193 189 176 179 182 185 182 182 180 188 184 184 177 167 152 199 299 163 167 162 152 143
Benchmarks
Operating Cycle, Competitors2
Advanced Micro Devices Inc. 216 207 184 170 170 155 162 144 143 144 166 171 188 199 179 194
Analog Devices Inc. 186 182 176 169 153 157 171 230 161 164 167 164 162 152 148 152 159 151 151 147
Applied Materials Inc. 221 228 232 243 223 212 198 207 195 200 204 213 222 219 215 217 213 205 199 198
Broadcom Inc. 90 93 95 96 93 95 86 73 71 70 70 70 80 85 93 85 98 96 102 99
First Solar Inc. 227 188 143 134 177 207 202 165 154 174 188 138 101 112 107 121
Intel Corp. 148 151 161 157 165 151 156 156 143 128 122 122 133 132 151 146
KLA Corp. 304 304 299 290 282 285 283 276 270 280 269 265 264 279 299 326
Lam Research Corp. 234 247 256 246 221 201 203 202 208 224 209 204 200 185 167 161
Micron Technology Inc. 231 213 237 205 189 179 166 165 159 158 194 205 202 196 197 197
NVIDIA Corp. 198 186 179 164 153 157 157 159 162 163 155 141 147 160 162 170
Texas Instruments Inc. 262 253 225 196 180 174 162 151 149 152 164 173 188 188 177 167

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Operating cycle = Average inventory processing period + Average receivable collection period
= 160 + 53 = 213

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Operating cycle Equal to average inventory processing period plus average receivables collection period. Microchip Technology Inc. operating cycle deteriorated from Q1 2023 to Q2 2023 and from Q2 2023 to Q3 2023.

Average Payables Payment Period

Microchip Technology Inc., average payables payment period calculation (quarterly data)

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data
Payables turnover 7.47 6.73 8.08 6.88 7.59 7.24 7.42 7.04 7.82 9.35 9.65 8.23 9.69 9.01 9.59 10.68 9.73 7.70 5.48 10.83 9.48 8.35 9.24 11.06
Short-term Activity Ratio (no. days)
Average payables payment period1 49 54 45 53 48 50 49 52 47 39 38 44 38 41 38 34 38 47 67 34 38 44 40 33
Benchmarks (no. days)
Average Payables Payment Period, Competitors2
Advanced Micro Devices Inc. 67 82 71 70 70 49 55 57 48 42 55 32 57 69 58 93
Analog Devices Inc. 48 47 45 47 43 41 45 58 47 50 42 43 41 37 40 42 41 38 41 48
Broadcom Inc. 32 27 30 33 24 37 37 37 33 29 31 29 39 44 36 31 36 28 27 29
First Solar Inc. 18 36 40 49 30 28 28 32 31 25 31 33 21 24 26 32
Intel Corp. 97 96 85 97 70 79 74 60 72 63 56 59 55 55 55 51
KLA Corp. 35 47 46 45 46 43 47 45 41 38 38 39 37 40 39 40
Lam Research Corp. 21 32 43 39 41 39 36 39 39 41 41 40 35 32 29 26
NVIDIA Corp. 45 75 71 69 70 68 61 70 72 67 65 60 53 38 31 41
Qualcomm Inc. 38 29 51 74 77 83 85 70 76 79 83 89 87 87 74 58
Texas Instruments Inc. 40 53 55 50 46 43 39 40 37 37 38 29 30 30 26 27

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 7.47 = 49

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Average payables payment period An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. Microchip Technology Inc. number of days of payables outstanding increased from Q1 2023 to Q2 2023 but then slightly decreased from Q2 2023 to Q3 2023 not reaching Q1 2023 level.

Cash Conversion Cycle

Microchip Technology Inc., cash conversion cycle calculation (quarterly data)

No. days

Microsoft Excel
Dec 31, 2022 Sep 30, 2022 Jun 30, 2022 Mar 31, 2022 Dec 31, 2021 Sep 30, 2021 Jun 30, 2021 Mar 31, 2021 Dec 31, 2020 Sep 30, 2020 Jun 30, 2020 Mar 31, 2020 Dec 31, 2019 Sep 30, 2019 Jun 30, 2019 Mar 31, 2019 Dec 31, 2018 Sep 30, 2018 Jun 30, 2018 Mar 31, 2018 Dec 31, 2017 Sep 30, 2017 Jun 30, 2017 Mar 31, 2017 Dec 31, 2016 Sep 30, 2016 Jun 30, 2016
Selected Financial Data
Average inventory processing period 160 147 135 132 123 119 118 118 120 119 118 123 128 126 114 107 112 146 231 111 115 109 98 92
Average receivable collection period 53 54 58 57 53 60 64 67 62 63 62 65 56 58 63 60 40 53 68 52 52 53 54 51
Average payables payment period 49 54 45 53 48 50 49 52 47 39 38 44 38 41 38 34 38 47 67 34 38 44 40 33
Short-term Activity Ratio
Cash conversion cycle1 164 147 148 136 128 129 133 133 135 143 142 144 146 143 139 133 114 152 232 129 129 118 112 110
Benchmarks
Cash Conversion Cycle, Competitors2
Advanced Micro Devices Inc. 149 125 113 100 100 106 107 87 95 102 111 139 131 130 121 101
Analog Devices Inc. 138 135 131 122 110 116 126 172 114 114 125 121 121 115 108 110 118 113 110 99
Broadcom Inc. 58 66 65 63 69 58 49 36 38 41 39 41 41 41 57 54 62 68 75 70
First Solar Inc. 209 152 103 85 147 179 174 133 123 149 157 105 80 88 81 89
Intel Corp. 51 55 76 60 95 72 82 96 71 65 66 63 78 77 96 95
KLA Corp. 269 257 253 245 236 242 236 231 229 242 231 226 227 239 260 286
Lam Research Corp. 213 215 213 207 180 162 167 163 169 183 168 164 165 153 138 135
NVIDIA Corp. 153 111 108 95 83 89 96 89 90 96 90 81 94 122 131 129
Texas Instruments Inc. 222 200 170 146 134 131 123 111 112 115 126 144 158 158 151 140

Based on: 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-Q (reporting date: 2022-06-30), 10-K (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-Q (reporting date: 2021-06-30), 10-K (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-Q (reporting date: 2020-06-30), 10-K (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30), 10-Q (reporting date: 2019-06-30), 10-K (reporting date: 2019-03-31), 10-Q (reporting date: 2018-12-31), 10-Q (reporting date: 2018-09-30), 10-Q (reporting date: 2018-06-30), 10-K (reporting date: 2018-03-31), 10-Q (reporting date: 2017-12-31), 10-Q (reporting date: 2017-09-30), 10-Q (reporting date: 2017-06-30), 10-K (reporting date: 2017-03-31), 10-Q (reporting date: 2016-12-31), 10-Q (reporting date: 2016-09-30), 10-Q (reporting date: 2016-06-30).

1 Q3 2023 Calculation
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 160 + 5349 = 164

2 Click competitor name to see calculations.

Short-term activity ratio Description The company
Cash conversion cycle A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. Microchip Technology Inc. cash conversion cycle improved from Q1 2023 to Q2 2023 but then deteriorated significantly from Q2 2023 to Q3 2023.