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.

Financial Reporting Quality: Aggregate Accruals 

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Balance-Sheet-Based Accruals Ratio

Microchip Technology Inc., balance sheet computation of aggregate accruals

US$ in thousands

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Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Operating Assets
Total assets 16,199,500 16,478,800 17,426,100 18,350,000 8,257,200 7,686,881
Less: Cash and cash equivalents 317,400 280,000 401,000 428,600 901,300 908,684
Less: Short-term investments 2,000 2,000 2,000 2,300 1,295,300 394,088
Operating assets 15,880,100 16,196,800 17,023,100 17,919,100 6,060,600 6,384,109
Operating Liabilities
Total liabilities 10,304,700 11,141,700 11,840,600 13,062,500 4,977,400 4,416,170
Less: Current portion of long-term debt 1,322,900 608,800 1,360,800 1,309,900 49,952
Less: Long-term debt excluding current maturities 7,687,400 7,581,200 8,873,400 8,946,200 1,758,400 2,900,524
Operating liabilities 2,617,300 2,237,600 2,358,400 2,755,500 1,909,100 1,465,694
 
Net operating assets1 13,262,800 13,959,200 14,664,700 15,163,600 4,151,500 4,918,415
Balance-sheet-based aggregate accruals2 (696,400) (705,500) (498,900) 11,012,100 (766,915)
Financial Ratio
Balance-sheet-based accruals ratio3 -5.12% -4.93% -3.35% 114.03% -16.91%
Benchmarks
Balance-Sheet-Based Accruals Ratio, Competitors4
Advanced Micro Devices Inc. 169.75% 8.05% 72.69% 28.39%
Analog Devices Inc. -2.94% 90.70% -2.85% 0.29% -2.75%
Applied Materials Inc. 20.73% 17.33% 3.75% 19.87% 9.56%
Broadcom Inc. -5.37% -8.72% 8.42% 27.77% 29.77%
First Solar Inc. -23.82% 7.60% 17.40% 8.33%
Intel Corp. 10.73% 11.61% 0.01% 4.20%
KLA Corp. 21.25% 3.62% -4.49% 126.76% -23.68%
Lam Research Corp. 36.00% 21.20% 12.45% -6.77% 10.60%
Micron Technology Inc. 12.07% 11.51% 7.56% 11.13% 20.96%
NVIDIA Corp. 28.31% 115.40% -16.93% 49.27%
ON Semiconductor Corp. 2.63% 6.18% -1.23% 21.07%
Qualcomm Inc. 68.49% 22.56% 20.94% 48.90% -98.54%
Texas Instruments Inc. 22.75% 18.48% 1.00% -5.28%
Balance-Sheet-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 24.12% 19.35% 4.61% 13.57% 200.00%
Balance-Sheet-Based Accruals Ratio, Industry
Information Technology 16.93% 19.28% 1.74% 13.77% 200.00%

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).

1 2022 Calculation
Net operating assets = Operating assets – Operating liabilities
= 15,880,1002,617,300 = 13,262,800

2 2022 Calculation
Balance-sheet-based aggregate accruals = Net operating assets2022 – Net operating assets2021
= 13,262,80013,959,200 = -696,400

3 2022 Calculation
Balance-sheet-based accruals ratio = 100 × Balance-sheet-based aggregate accruals ÷ Avg. net operating assets
= 100 × -696,400 ÷ [(13,262,800 + 13,959,200) ÷ 2] = -5.12%

4 Click competitor name to see calculations.

Financial ratio Description The company
Balance-sheet-based accruals ratio Ratio is found by dividing balance-sheet-based aggregate accruals by average net operating assets. Using the balance-sheet-based accruals ratio, Microchip Technology Inc. deteriorated earnings quality from 2021 to 2022.

Cash-Flow-Statement-Based Accruals Ratio

Microchip Technology Inc., cash flow statement computation of aggregate accruals

US$ in thousands

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Net income 1,285,500 349,400 570,600 355,900 255,400 164,639
Less: Net cash provided by operating activities 2,842,700 1,916,500 1,543,800 1,674,800 1,419,600 1,050,104
Less: Net cash used in investing activities (477,700) (173,300) (133,200) (6,811,000) (1,011,700) (2,837,973)
Cash-flow-statement-based aggregate accruals (1,079,500) (1,393,800) (840,000) 5,492,100 (152,500) 1,952,508
Financial Ratio
Cash-flow-statement-based accruals ratio1 -7.93% -9.74% -5.63% 56.87% -3.36%
Benchmarks
Cash-Flow-Statement-Based Accruals Ratio, Competitors2
Advanced Micro Devices Inc. -15.28% 8.10% 83.38% -0.19%
Analog Devices Inc. -2.54% -11.85% -3.72% -3.61% -3.78%
Applied Materials Inc. 18.18% 14.75% -0.54% -1.09% -13.49%
Broadcom Inc. -8.94% -12.34% 3.65% 18.25% 23.21%
First Solar Inc. 7.04% 7.84% 13.21% 2.24%
Intel Corp. 2.75% 15.15% 6.75% 2.52%
KLA Corp. 18.30% 9.27% -7.11% 45.10% -64.79%
Lam Research Corp. 13.82% 5.16% 9.16% 16.67% -78.67%
Micron Technology Inc. 11.37% 10.01% 5.45% 9.74% 17.59%
NVIDIA Corp. 73.13% 233.25% -225.09% 143.36%
ON Semiconductor Corp. -0.40% 2.32% -3.27% 18.80%
Qualcomm Inc. 46.91% 15.61% 48.48% -30.37% -127.94%
Texas Instruments Inc. 28.24% 29.95% 4.03% 3.01%
Cash-Flow-Statement-Based Accruals Ratio, Sector
Semiconductors & Semiconductor Equipment 7.32% 12.14% 3.64% 8.12% -4.08%
Cash-Flow-Statement-Based Accruals Ratio, Industry
Information Technology 1.33% 9.83% -5.32% -8.53% -33.94%

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
Cash-flow-statement-based accruals ratio = 100 × Cash-flow-statement-based aggregate accruals ÷ Avg. net operating assets
= 100 × -1,079,500 ÷ [(13,262,800 + 13,959,200) ÷ 2] = -7.93%

2 Click competitor name to see calculations.

Financial ratio Description The company
Cash-flow-statement-based accruals ratio Ratio is found by dividing cash-flow-statement-based aggregate accruals by average net operating assets. Using the cash-flow-statement-based accruals ratio, Microchip Technology Inc. improved earnings quality from 2021 to 2022.