Current Ratio
since 2005
Calculation
Microchip Technology Inc., current ratio, long-term trends, calculation
| Current ratio | = | Current assets1 | ÷ | Current liabilities1 | |
|---|---|---|---|---|---|
| Mar 31, 2022 | 1.75 | = | 2,452,600) | ÷ | 1,399,000) |
| Mar 31, 2021 | 0.89 | = | 2,145,200) | ÷ | 2,409,600) |
| Mar 31, 2020 | 1.35 | = | 2,217,200) | ÷ | 1,637,400) |
| Mar 31, 2019 | 0.93 | = | 2,214,800) | ÷ | 2,374,500) |
| Mar 31, 2018 | 1.66 | = | 3,356,300) | ÷ | 2,017,400) |
| Mar 31, 2017 | 3.27 | = | 2,305,040) | ÷ | 704,450) |
| Mar 31, 2016 | 8.11 | = | 3,096,713) | ÷ | 382,009) |
| Mar 31, 2015 | 7.53 | = | 2,664,617) | ÷ | 353,972) |
| Mar 31, 2014 | 5.86 | = | 1,969,399) | ÷ | 336,079) |
| Mar 31, 2013 | 6.55 | = | 2,236,370) | ÷ | 341,611) |
| Mar 31, 2012 | 8.13 | = | 2,015,861) | ÷ | 247,873) |
| Mar 31, 2011 | 5.22 | = | 1,774,983) | ÷ | 340,316) |
| Mar 31, 2010 | 7.92 | = | 1,610,969) | ÷ | 203,390) |
| Mar 31, 2009 | 11.20 | = | 1,742,789) | ÷ | 155,645) |
| Mar 31, 2008 | 8.99 | = | 1,717,730) | ÷ | 191,081) |
| Mar 31, 2007 | 4.24 | = | 1,084,737) | ÷ | 255,920) |
| Mar 31, 2006 | 1.84 | = | 1,118,829) | ÷ | 608,969) |
| Mar 31, 2005 | 3.51 | = | 1,075,348) | ÷ | 306,665) |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
1 US$ in thousands
The analysis of the liquidity position from 2005 to 2022 reveals a profound shift in the management of short-term assets and liabilities. The financial profile transitioned from a period of extreme liquidity surplus to a more constrained position characterized by significantly higher short-term obligations.
- Current Asset Trends
- Current assets exhibited a general long-term upward trajectory, increasing from approximately 1.08 billion USD in 2005 to 2.45 billion USD by 2022. A peak was reached in 2016 at approximately 3.10 billion USD, followed by a period of relative stabilization between 2.14 billion USD and 2.45 billion USD during the final six years of the period.
- Current Liability Volatility
- Short-term obligations remained relatively stable and low between 2005 and 2017, generally fluctuating below 705 million USD. A substantial increase occurred in 2018, where liabilities surged to approximately 2.02 billion USD and peaked at 2.37 billion USD in 2019. Although liabilities decreased to 1.40 billion USD by 2022, they remained markedly higher than the levels maintained during the first decade of the analyzed timeframe.
- Current Ratio Interpretation
- The current ratio underwent a dramatic contraction over the seventeen-year period. From 2005 to 2016, the ratio remained exceptionally high, peaking at 11.20 in 2009, which suggests a highly conservative liquidity stance. Starting in 2017, a sharp decline was observed, with the ratio falling below the 1.0 threshold in 2019 (0.93) and 2021 (0.89), indicating periods where current liabilities exceeded current assets. A recovery to 1.75 was observed by March 31, 2022, signaling a return to a positive net working capital position.
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Comparison to Competitors
Microchip Technology Inc., current ratio, long-term trends, comparison to competitors
| Microchip Technology Inc. | Advanced Micro Devices Inc. | Analog Devices Inc. | Applied Materials Inc. | Broadcom Inc. | Intel Corp. | KLA Corp. | Lam Research Corp. | Marvell Technology Inc. | Micron Technology Inc. | NVIDIA Corp. | Qualcomm Inc. | Texas Instruments Inc. | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Mar 31, 2022 | 1.75 | 2.36 | 2.02 | 2.16 | 2.62 | 1.57 | 2.50 | 2.69 | 1.80 | 2.89 | 6.65 | 1.75 | 4.70 |
| Mar 31, 2021 | 0.89 | 2.02 | 1.94 | 2.54 | 2.64 | 2.10 | 2.71 | 3.30 | 1.50 | 3.10 | 4.09 | 1.68 | 5.33 |
| Mar 31, 2020 | 1.35 | 2.54 | 1.84 | 3.00 | 1.87 | 1.91 | 2.78 | 3.43 | 2.16 | 2.71 | 7.67 | 2.14 | 4.28 |
| Mar 31, 2019 | 0.93 | 1.95 | 1.32 | 2.30 | 1.44 | 1.40 | 2.44 | 3.61 | 2.19 | 2.58 | 7.94 | 1.88 | 4.13 |
| Mar 31, 2018 | 1.66 | 1.78 | 1.50 | 2.64 | 3.90 | 1.73 | 3.73 | 2.90 | 5.61 | 2.79 | 8.03 | 1.55 | 3.27 |
| Mar 31, 2017 | 3.27 | 1.76 | 1.47 | 3.14 | 6.26 | 1.69 | 3.40 | 3.10 | 4.59 | 2.34 | 4.77 | 4.00 | 3.87 |
| Mar 31, 2016 | 8.11 | 1.88 | 6.35 | 2.30 | 2.31 | 1.75 | 3.86 | 3.81 | 2.38 | 1.96 | 2.57 | 3.14 | 3.29 |
| Mar 31, 2015 | 7.53 | 1.65 | 3.66 | 2.44 | 3.37 | 2.58 | 3.90 | 2.38 | 5.25 | 2.20 | 6.38 | 3.62 | 2.77 |
| Mar 31, 2014 | 5.86 | 1.90 | 5.38 | 2.47 | 3.77 | 1.73 | 5.12 | 3.02 | 4.36 | 2.13 | 5.95 | 3.73 | 2.92 |
| Mar 31, 2013 | 6.55 | 1.78 | 9.59 | 2.31 | 4.30 | 2.36 | 5.05 | 2.70 | 4.25 | 2.16 | 4.89 | 3.75 | 2.92 |
| Mar 31, 2012 | 8.13 | 1.62 | 8.94 | 2.25 | 4.89 | 2.43 | 4.83 | 3.09 | 5.22 | 2.57 | 4.20 | 2.95 | 2.40 |
| Mar 31, 2011 | 5.22 | 1.82 | 8.35 | 3.71 | 3.98 | 2.15 | 4.17 | 4.79 | 5.79 | 2.35 | 3.42 | 2.70 | 2.24 |
| Mar 31, 2010 | 7.92 | 2.15 | 5.41 | 2.34 | 1.92 | 3.39 | 3.67 | 3.14 | 4.35 | 2.34 | 3.16 | 2.22 | 3.56 |
| Mar 31, 2009 | 11.20 | 1.93 | 6.44 | 2.93 | 1.36 | 2.79 | 4.25 | 3.51 | 3.81 | 1.77 | 2.78 | 4.47 | 3.85 |
| Mar 31, 2008 | 8.99 | 1.07 | 3.67 | 2.26 | — | 2.54 | 3.19 | 3.01 | 2.58 | 2.36 | 2.99 | 5.12 | 3.78 |
| Mar 31, 2007 | 4.24 | 1.45 | 3.61 | 2.78 | — | 2.79 | 3.03 | 2.11 | 1.90 | 2.58 | 3.18 | 3.91 | 3.42 |
| Mar 31, 2006 | 1.84 | 1.39 | 6.13 | 2.50 | — | 2.15 | 3.53 | 3.01 | 4.51 | 3.07 | 3.53 | 4.96 | 3.78 |
| Mar 31, 2005 | 3.51 | 1.95 | 4.56 | 5.35 | — | 2.30 | 3.44 | 3.28 | 4.74 | 2.99 | 3.10 | 7.28 | 3.92 |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Sector (Semiconductors & Semiconductor Equipment)
Microchip Technology Inc., current ratio, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Microchip Technology Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Mar 31, 2022 | 1.75 | 2.33 |
| Mar 31, 2021 | 0.89 | 2.45 |
| Mar 31, 2020 | 1.35 | 2.46 |
| Mar 31, 2019 | 0.93 | 2.04 |
| Mar 31, 2018 | 1.66 | 2.34 |
| Mar 31, 2017 | 3.27 | 2.92 |
| Mar 31, 2016 | 8.11 | 2.38 |
| Mar 31, 2015 | 7.53 | 2.86 |
| Mar 31, 2014 | 5.86 | 2.61 |
| Mar 31, 2013 | 6.55 | 2.89 |
| Mar 31, 2012 | 8.13 | 2.80 |
| Mar 31, 2011 | 5.22 | 2.73 |
| Mar 31, 2010 | 7.92 | 2.92 |
| Mar 31, 2009 | 11.20 | 3.02 |
| Mar 31, 2008 | 8.99 | 2.79 |
| Mar 31, 2007 | 4.24 | 2.78 |
| Mar 31, 2006 | 1.84 | 2.74 |
| Mar 31, 2005 | 3.51 | 3.23 |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).
Comparison to Industry (Information Technology)
Microchip Technology Inc., current ratio, long-term trends, comparison to industry (information technology)
| Microchip Technology Inc. | Information Technology | |
|---|---|---|
| Mar 31, 2022 | 1.75 | 1.37 |
| Mar 31, 2021 | 0.89 | 1.55 |
| Mar 31, 2020 | 1.35 | 1.71 |
| Mar 31, 2019 | 0.93 | 1.66 |
| Mar 31, 2018 | 1.66 | 1.88 |
| Mar 31, 2017 | 3.27 | 2.04 |
| Mar 31, 2016 | 8.11 | 2.01 |
| Mar 31, 2015 | 7.53 | 2.04 |
| Mar 31, 2014 | 5.86 | 1.98 |
| Mar 31, 2013 | 6.55 | 2.20 |
| Mar 31, 2012 | 8.13 | 2.08 |
| Mar 31, 2011 | 5.22 | 2.12 |
| Mar 31, 2010 | 7.92 | 2.02 |
| Mar 31, 2009 | 11.20 | 2.04 |
| Mar 31, 2008 | 8.99 | 1.80 |
| Mar 31, 2007 | 4.24 | 1.79 |
| Mar 31, 2006 | 1.84 | 1.86 |
| Mar 31, 2005 | 3.51 | 2.02 |
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), 10-K (reporting date: 2016-03-31), 10-K (reporting date: 2015-03-31), 10-K (reporting date: 2014-03-31), 10-K (reporting date: 2013-03-31), 10-K (reporting date: 2012-03-31), 10-K (reporting date: 2011-03-31), 10-K (reporting date: 2010-03-31), 10-K (reporting date: 2009-03-31), 10-K (reporting date: 2008-03-31), 10-K (reporting date: 2007-03-31), 10-K (reporting date: 2006-03-31), 10-K (reporting date: 2005-03-31).