Name: Microchip Technology Inc. (NASDAQ:MCHP) | Liabilities and Stockholders’ Equity
Creator: Stock Analysis on Net

Balance Sheet: Liabilities and Stockholders’ Equity

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.

Liabilities represents obligations of a company arising from past events, the settlement of which is expected to result in an outflow of economic benefits from the entity.

Download chart

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

US$ in thousands

	Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
Accounts payable	344,700)	292,400)	246,800)	226,400)	144,100)	149,233)
Accrued compensation and benefits	213,700)	166,700)	137,500)	133,200)	87,600)	—)
Income taxes payable	121,500)	43,400)	38,000)	46,900)	27,500)	—)
Sales related reserves	408,100)	350,700)	353,000)	366,900)	—)	—)
Current portion of operating lease liabilities	33,800)	39,800)	44,500)	—)	—)	—)
Accrued expenses and other liabilities	277,200)	193,700)	208,800)	240,300)	114,500)	212,450)
Accrued liabilities	1,054,300)	794,300)	781,800)	787,300)	229,600)	212,450)
Deferred income on shipments to distributors	—)	—)	—)	—)	333,800)	292,815)
Current portion of long-term debt	—)	1,322,900)	608,800)	1,360,800)	1,309,900)	49,952)
Current liabilities	1,399,000)	2,409,600)	1,637,400)	2,374,500)	2,017,400)	704,450)
Long-term debt excluding current maturities	7,687,400)	7,581,200)	8,873,400)	8,946,200)	1,758,400)	2,900,524)
Long-term income tax payable	704,600)	689,900)	668,400)	756,200)	754,900)	184,945)
Long-term deferred tax liability	39,800)	43,900)	318,500)	706,100)	205,800)	409,045)
Other long-term liabilities	473,900)	417,100)	342,900)	279,500)	240,900)	217,206)
Long-term liabilities	8,905,700)	8,732,100)	10,203,200)	10,688,000)	2,960,000)	3,711,720)
Total liabilities	10,304,700)	11,141,700)	11,840,600)	13,062,500)	4,977,400)	4,416,170)
Preferred stock, $0.001 par value; no shares issued or outstanding	—)	—)	—)	—)	—)	—)
Common stock, $0.001 par value	600)	300)	200)	200)	200)	229)
Additional paid-in capital	2,535,900)	2,403,300)	2,675,100)	2,679,600)	2,562,500)	2,537,344)
Common stock held in treasury	(796,300)	(433,800)	(500,600)	(582,200)	(662,600)	(731,884)
Accumulated other comprehensive loss	(20,600)	(26,200)	(21,600)	(20,700)	(17,600)	(14,378)
Retained earnings	4,175,200)	3,393,500)	3,432,400)	3,210,600)	1,397,300)	1,479,400)
Stockholders’ equity	5,894,800)	5,337,100)	5,585,500)	5,287,500)	3,279,800)	3,270,711)
Total liabilities and stockholders’ equity	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).

The financial structure of the organization underwent a significant transformation between 2017 and 2022, characterized by a substantial increase in long-term leverage starting in 2019 and a consistent strengthening of stockholders' equity through retained earnings.

Current Liabilities and Short-Term Obligations: A steady upward trend is observed in operational liabilities, with accounts payable increasing from 149.2 million in 2017 to 344.7 million in 2022. Accrued liabilities showed a sharp escalation in 2019, jumping from 229.6 million to 787.3 million, and eventually reaching 1.05 billion by 2022. The current portion of long-term debt exhibited high volatility, peaking at 1.36 billion in 2019 and 1.32 billion in 2021, before disappearing entirely from the current liabilities profile by March 31, 2022. Consequently, total current liabilities peaked in 2021 at 2.41 billion before declining to 1.40 billion in 2022.
Long-Term Debt and Non-Current Liabilities: The most significant shift in the balance sheet occurred in 2019, when long-term debt excluding current maturities surged from 1.76 billion to 8.95 billion. This level of indebtedness remained relatively stable through 2022, ending at 7.69 billion. Long-term income tax payable also saw a substantial increase in 2018, rising from 184.9 million to 754.9 million and remaining at an elevated plateau. Conversely, long-term deferred tax liabilities peaked in 2019 at 706.1 million before trending downward significantly to 39.8 million by 2022. Total long-term liabilities peaked in 2019 at 10.69 billion and contracted slightly to 8.91 billion by the end of the period.
Stockholders' Equity and Capital Management: Stockholders' equity demonstrated consistent growth, increasing from 3.27 billion in 2017 to 5.89 billion in 2022. This growth was primarily driven by a significant rise in retained earnings, which climbed from 1.48 billion to 4.18 billion over the six-year period, signaling strong cumulative profitability. Capital management activities are evident in the treasury stock account, which fluctuated but reached its highest negative value of 796.3 million in 2022, indicating an aggressive share repurchase strategy. Additional paid-in capital remained relatively stable, fluctuating between 2.40 billion and 2.68 billion.
Overall Leverage and Balance Sheet Composition: Total liabilities peaked in 2019 at 13.06 billion and followed a gradual downward trajectory to 10.30 billion by 2022. The total balance sheet size expanded rapidly in 2019 to 18.35 billion, primarily due to the influx of long-term debt, before stabilizing around 16.20 billion in 2022. The shift suggests a strategic transition toward a more leveraged capital structure in 2019, followed by a period of gradual deleveraging and internal equity accumulation.

AI Ask an analyst for more

My previous chats

Hi, I’m an AI-powered financial analyst at Stock Analysis on Net.

How can I help you?