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Microchip Technology Inc. (NASDAQ:MCHP)

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

Common-Size Balance Sheet: Liabilities and Stockholders’ Equity

Microchip Technology Inc., common-size consolidated balance sheet: liabilities and stockholders’ equity

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Accounts payable 2.13 1.77 1.42 1.23 1.75 1.94
Accrued compensation and benefits 1.32 1.01 0.79 0.73 1.06 0.00
Income taxes payable 0.75 0.26 0.22 0.26 0.33 0.00
Sales related reserves 2.52 2.13 2.03 2.00 0.00 0.00
Current portion of operating lease liabilities 0.21 0.24 0.26 0.00 0.00 0.00
Accrued expenses and other liabilities 1.71 1.18 1.20 1.31 1.39 2.76
Accrued liabilities 6.51% 4.82% 4.49% 4.29% 2.78% 2.76%
Deferred income on shipments to distributors 0.00 0.00 0.00 0.00 4.04 3.81
Current portion of long-term debt 0.00 8.03 3.49 7.42 15.86 0.65
Current liabilities 8.64% 14.62% 9.40% 12.94% 24.43% 9.16%
Long-term debt excluding current maturities 47.45 46.01 50.92 48.75 21.30 37.73
Long-term income tax payable 4.35 4.19 3.84 4.12 9.14 2.41
Long-term deferred tax liability 0.25 0.27 1.83 3.85 2.49 5.32
Other long-term liabilities 2.93 2.53 1.97 1.52 2.92 2.83
Long-term liabilities 54.98% 52.99% 58.55% 58.25% 35.85% 48.29%
Total liabilities 63.61% 67.61% 67.95% 71.19% 60.28% 57.45%
Preferred stock, $0.001 par value; no shares issued or outstanding 0.00 0.00 0.00 0.00 0.00 0.00
Common stock, $0.001 par value 0.00 0.00 0.00 0.00 0.00 0.00
Additional paid-in capital 15.65 14.58 15.35 14.60 31.03 33.01
Common stock held in treasury -4.92 -2.63 -2.87 -3.17 -8.02 -9.52
Accumulated other comprehensive loss -0.13 -0.16 -0.12 -0.11 -0.21 -0.19
Retained earnings 25.77 20.59 19.70 17.50 16.92 19.25
Stockholders’ equity 36.39% 32.39% 32.05% 28.81% 39.72% 42.55%
Total liabilities and stockholders’ equity 100.00% 100.00% 100.00% 100.00% 100.00% 100.00%

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).

The overall capital structure exhibits a shift toward increased leverage over the analyzed period, with total liabilities peaking in 2019 before stabilizing. Total liabilities rose from 57.45% of total liabilities and stockholders' equity in 2017 to a high of 71.19% in 2019, ultimately settling at 63.61% by 2022. Correspondingly, stockholders' equity declined from 42.55% in 2017 to 36.39% in 2022, reflecting a transition toward a more debt-reliant financing model.

Liability Composition and Liquidity Trends
Current liabilities demonstrated significant volatility, starting at 9.16% in 2017, peaking at 24.43% in 2018, and declining to 8.64% by 2022. This peak in 2018 was primarily driven by the current portion of long-term debt, which surged to 15.86% that year. Other current obligations, such as accounts payable and accrued liabilities, remained relatively low but showed a gradual upward trend toward the end of the period, with accrued liabilities reaching 6.51% in 2022.
Long-Term Debt Analysis
Long-term debt excluding current maturities is the most significant component of the balance sheet. After a sharp decrease to 21.30% in 2018, it increased substantially to 48.75% in 2019 and remained elevated, ending the period at 47.45% in 2022. This indicates a strategic shift toward long-term borrowing to fund operations or acquisitions. Long-term income tax payables also showed an increase from 2.41% in 2017 to 4.35% in 2022.
Equity Structure and Internal Funding
The composition of stockholders' equity underwent a notable transformation. Additional paid-in capital declined sharply from 33.01% in 2017 to 15.65% in 2022. Conversely, retained earnings grew steadily from 19.25% in 2017 to 25.77% in 2022, suggesting that a larger portion of the company's equity is now derived from accumulated profits rather than external capital contributions. Treasury stock holdings fluctuated, reaching a low of -2.63% in 2021 before increasing to -4.92% in 2022.
Deferred Tax and Other Liabilities
A marked decline is observed in long-term deferred tax liabilities, which fell from 5.32% in 2017 to 0.25% in 2022. Other long-term liabilities remained relatively stable, fluctuating between 1.52% and 2.93% throughout the six-year period.

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