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.

Cash Flow Statement 

The cash flow statement provides information about a company cash receipts and cash payments during an accounting period, showing how these cash flows link the ending cash balance to the beginning balance shown on the company balance sheet.

The cash flow statement consists of three parts: cash flows provided by (used in) operating activities, cash flows provided by (used in) investing activities, and cash flows provided by (used in) financing activities.

Microchip Technology Inc., consolidated cash flow statement

US$ in thousands

Microsoft Excel
12 months ended: 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
Depreciation and amortization 1,143,500 1,153,300 1,215,600 876,400 615,900 469,208
Deferred income taxes 7,900 (138,900) (490,300) (62,200) 51,200 (126,888)
Share-based compensation expense related to equity incentive plans 210,200 198,300 170,200 166,400 93,200 128,155
Loss on settlement of debt 113,400 299,600 5,400 12,600 16,000 43,879
Amortization of debt discount 44,900 71,100 121,700 114,600 106,100 56,075
Amortization of debt issuance costs 11,500 17,100 17,100 16,500 6,600 4,524
Losses on equity method investments 200 200 222
Impairment of intangible assets 3,000 2,200 3,100 500 11,904
Realized gain on equity method investment (468)
Impairment of available-for-sale investment 6,000 15,500 1,433
Amortization of premium on available-for-sale investments (200) 300 18
Other non-cash adjustment (11,400) (6,400) (2,000) 800 (5,800) 2,582
(Increase) decrease in accounts receivable (74,900) (63,700) (53,300) 238,800 (85,300) (46,831)
(Increase) decrease in inventories (177,800) 18,400 28,800 341,600 (59,200) 223,711
Increase (decrease) in deferred income on shipments to distributors 41,000 109,383
Increase (decrease) in accounts payable and accrued liabilities 192,700 17,600 11,400 (180,700) (13,900) (16,070)
Change in other assets and liabilities 79,400 (16,700) (13,100) (24,200) 14,000 24,628
Change in income tax payable 14,800 17,400 (40,500) (190,800) 367,900
Changes in operating assets and liabilities, excluding impact of acquisitions 34,200 (27,000) (66,700) 184,700 264,500 294,821
Adjustments to reconcile net income to net cash provided by operating activities 1,557,200 1,567,100 973,200 1,318,900 1,164,200 885,465
Net cash provided by operating activities 2,842,700 1,916,500 1,543,800 1,674,800 1,419,600 1,050,104
Purchases of available-for-sale investments (2,000) (167,700) (1,594,800) (500,309)
Maturities of available-for-sale investments 78,000 786,700 400
Sales of available-for-sale investments and marketable equity securities 4,700 1,376,600 470,165
Sale of equity method investment 1,746
Acquisition of Atmel, net of cash acquired (2,747,516)
Acquisition of Microsemi, net of cash acquired (7,850,600)
Proceeds from sales of assets 14,100 8,300 3,200 200 10,300 23,069
Investments in other assets (121,700) (89,000) (71,500) (18,600) (7,100) (10,218)
Capital expenditures (370,100) (92,600) (67,600) (228,900) (206,800) (75,310)
Net cash used in investing activities (477,700) (173,300) (133,200) (6,811,000) (1,011,700) (2,837,973)
Proceeds from borrowings on Revolving Credit Facility 4,176,000 3,966,000 1,026,000 4,416,500 187,000 1,537,000
Repayments of Revolving Credit Facility (5,123,500) (4,007,900) (1,904,000) (1,150,000) (187,000) (2,781,000)
Proceeds from issuance of senior notes 997,000 3,577,800 1,989,500 2,645,000
Repayment of senior notes (1,000,000)
Proceeds from borrowings on Bridge Loan Facility 611,900
Repayment of Bridge Loan Facility (615,000)
Proceeds from borrowings on Term Loan Facility 3,000,000
Repayments of Term Loan Facility (1,723,500) (188,000) (1,088,500)
Payments on settlement of convertible debt (424,700) (2,611,400) (615,000) (73,400) (436,205)
Repayment of debt assumed in Microsemi acquisition (2,056,900)
Deferred financing costs (8,500) (21,200) (8,900) (72,700) (1,200) (36,930)
Purchase of capped call options (35,800)
Proceeds from sale of common stock 70,500 60,300 58,800 42,600 42,000 42,210
Tax payments related to shares withheld for vested RSUs (84,200) (64,600) (68,100) (71,800) (44,400) (58,402)
Repurchase of common stock (425,600)
Payment of cash dividends (503,800) (388,300) (350,100) (344,400) (337,500) (315,429)
Capital lease payments (800) (600) (800) (800) (800) (783)
Net cash used in financing activities (2,327,600) (1,864,200) (1,438,200) 4,663,500 (415,300) 595,461
Operating cash flows related to discontinued operations 9,348
Effect of foreign exchange rate changes on cash and cash equivalents (1,007)
Net increase (decrease) in cash and cash equivalents 37,400 (121,000) (27,600) (472,700) (7,400) (1,184,067)
Cash and cash equivalents, and restricted cash at beginning of period 280,000 401,000 428,600 901,300 908,700 2,092,751
Cash and cash equivalents, and restricted cash at end of period 317,400 280,000 401,000 428,600 901,300 908,684

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 data reveals several significant trends and fluctuations over the analyzed periods.

Net Income
Net income exhibited a general upward trend, growing from approximately $164.6 million in 2017 to $1.29 billion in 2022, with a notable dip in 2021.
Depreciation and Amortization
This expense steadily increased, starting at around $469 million in 2017 and reaching a peak of about $1.15 billion in 2021, then slightly declining in 2022.
Deferred Income Taxes
There were large swings in deferred income taxes, reflecting volatility with values swinging between negative and positive figures across the timeline, indicating varying tax impacts.
Share-based Compensation Expense
Consistent growth was observed, increasing from roughly $128 million in 2017 to over $210 million by 2022, indicating increased equity compensation expense over time.
Loss on Settlement of Debt
The loss on settlement of debt showed considerable variation, with a sharp increase in 2021 to nearly $300 million, before declining again in 2022.
Amortization of Debt Discount and Issuance Costs
Both metrics generally rose through 2020 and declined thereafter, with amortization of debt discount peaking around 2020 and reducing in subsequent years.
Impairment and Investment Gains/Losses
Various impairments and losses on investments appeared sporadically, though impairment charges notably diminished after 2020, indicating reduced write-downs of intangible and investment assets.
Changes in Working Capital
Accounts receivable fluctuated, showing increases and decreases without a clear trend, while inventories displayed volatility with significant fluctuations. Accounts payable and accrued liabilities showed mainly positive changes from 2020 onward, indicating some improvement in working capital management.
Net Cash Provided by Operating Activities
Operating cash flow increased over time, peaking at approximately $2.84 billion in 2022, evidencing strong cash generation capabilities.
Investing Activities
Substantial cash outflows were recorded, especially notable in 2019 with $6.8 billion used, primarily due to the Microsemi acquisition. Capital expenditures were uneven, with a notable increase to $370 million in 2022.
Financing Activities
Financing cash flows were highly variable, influenced by debt issuance and repayments, with proceeds from borrowings and repayments fluctuating sharply. Repurchases of common stock and dividend payments increased, with share repurchases reaching $426 million in 2022 and dividends rising steadily.
Overall Liquidity
Cash and cash equivalents generally declined from over $2 billion in 2017 to around $317 million by 2022, despite positive net cash from operating activities, largely due to large investing and financing outflows.

In summary, the data reflects robust growth in profitability and operating cash flow, paired with significant investing expenditures mainly linked to acquisitions and capital investments. Financing activities show active debt management and shareholder returns through dividends and stock repurchases. The volatility in deferred taxes and debt-related expenses indicates active financial structuring over the periods. The company’s liquidity position declined, influenced by substantial outflows, suggesting ongoing capital deployment despite solid cash flow from operations.