Name: Microchip Technology Inc. (NASDAQ:MCHP) | Balance Sheet: Assets
Creator: Stock Analysis on Net

Balance Sheet: Assets

The balance sheet provides creditors, investors, and analysts with information on company resources (assets) and its sources of capital (its equity and liabilities). It normally also provides information about the future earnings capacity of a company assets as well as an indication of cash flows that may come from receivables and inventories.

Assets are resources controlled by the company as a result of past events and from which future economic benefits are expected to flow to the entity.

Assets: Selected Items

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Current Assets: Selected Items

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Microchip Technology Inc., consolidated balance sheet: assets

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Cash and cash equivalents	317,400)	280,000)	401,000)	428,600)	901,300)	908,684)
Short-term investments	2,000)	2,000)	2,000)	2,300)	1,295,300)	394,088)
Accounts receivable, net	1,072,600)	997,700)	934,000)	880,600)	563,700)	478,373)
Inventories	854,400)	665,000)	685,700)	711,700)	476,200)	417,202)
Assets held for sale	—)	—)	—)	—)	—)	6,459)
Other current assets	206,200)	200,500)	194,500)	191,600)	119,800)	100,234)
Current assets	2,452,600)	2,145,200)	2,217,200)	2,214,800)	3,356,300)	2,305,040)
Property, plant and equipment, net	967,900)	854,700)	876,100)	996,700)	767,900)	683,338)
Long-term investments	—)	—)	—)	—)	—)	107,457)
Goodwill	6,673,600)	6,670,600)	6,664,800)	6,663,900)	2,299,000)	2,299,009)
Intangible assets, net	4,043,100)	4,794,800)	5,702,300)	6,685,600)	1,662,000)	2,148,092)
Long-term deferred tax assets	1,797,100)	1,749,200)	1,748,500)	1,677,200)	100,200)	68,870)
Other assets	265,200)	264,300)	217,200)	111,800)	71,800)	75,075)
Long-term assets	13,746,900)	14,333,600)	15,208,900)	16,135,200)	4,900,900)	5,381,841)
Total assets	16,199,500)	16,478,800)	17,426,100)	18,350,000)	8,257,200)	7,686,881)

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).

Total assets experienced a significant expansion in 2019, increasing from approximately 8.26 billion USD to 18.35 billion USD, followed by a gradual decline to 16.20 billion USD by March 31, 2022. This trajectory indicates a major structural shift in the company's asset base during the 2019 fiscal year, characterized by a transition from a lean asset profile to one heavily weighted toward non-current intangible assets.

Liquidity and Working Capital Trends: A sustained reduction in liquid assets is observed, with cash and cash equivalents declining from 908.7 million USD in 2017 to 317.4 million USD in 2022. Short-term investments peaked in 2018 at 1.30 billion USD before dropping to a nominal 2 million USD from 2019 onward. In contrast, operational current assets showed growth; accounts receivable more than doubled, rising from 478.4 million USD in 2017 to 1.07 billion USD in 2022, and inventories increased from 417.2 million USD to 854.4 million USD over the same period.
Intangible Asset Expansion and Amortization: The asset structure was fundamentally altered in 2019, where goodwill rose sharply from 2.30 billion USD to 6.66 billion USD. Similarly, intangible assets surged from 1.66 billion USD to 6.69 billion USD in the same year. While goodwill remained stable through 2022, intangible assets exhibited a consistent downward trend post-2019, decreasing to 4.04 billion USD by March 31, 2022, likely reflecting scheduled amortization.
Capital Investment and Deferred Tax Assets: Net property, plant, and equipment demonstrated a general upward trend, growing from 683.3 million USD in 2017 to 967.9 million USD in 2022, suggesting a steady investment in productive capacity. Long-term deferred tax assets underwent a massive increase in 2019, jumping from 100.2 million USD to 1.68 billion USD, and remained elevated at 1.80 billion USD by 2022.

The overall balance sheet evolution reveals a strategic pivot in 2019 that significantly increased the proportion of long-term assets relative to current assets. While the company has expanded its operational footprint—as evidenced by higher receivables, inventories, and fixed assets—there has been a simultaneous contraction in cash reserves and a gradual erosion of the value of intangible assets over time.

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