Stock Analysis on Net
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 Bad Debts

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Allowance for doubtful accounts receivable (bad debts) is a contra account which reduce the balance of the company gross accounts receivable. The relationship between the allowance and the balance in receivables should be relatively constant unless there is a change in the economy overall or a change in customer base.

Allowance for Doubtful Accounts Receivable

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Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Selected Financial Data (US$ in thousands)
Allowance for expected credit losses 6,200 5,200 4,900 2,000 2,200 2,084
Accounts receivable, gross 1,078,800 1,002,900 938,900 882,600 565,900 480,457
Financial Ratio
Allowance as a percentage of accounts receivable, gross1 0.57% 0.52% 0.52% 0.23% 0.39% 0.43%

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
Allowance as a percentage of accounts receivable, gross = 100 × Allowance for expected credit losses ÷ Accounts receivable, gross
= 100 × 6,200 ÷ 1,078,800 = 0.57%

Financial ratio Description The company
Allowance as a percentage of accounts receivable, gross Allowance for doubtful accounts divided by the gross accounts receivable. Microchip Technology Inc. allowance as a percentage of accounts receivable, gross decreased from 2020 to 2021 but then increased from 2021 to 2022 exceeding 2020 level.