Debt to Equity
since 2005
Calculation
Microchip Technology Inc., debt to equity, long-term trends, calculation
| Debt to equity | = | Total debt1 | ÷ | Stockholders’ equity1 | |
|---|---|---|---|---|---|
| Mar 31, 2022 | 1.30 | = | 7,687,400) | ÷ | 5,894,800) |
| Mar 31, 2021 | 1.67 | = | 8,904,100) | ÷ | 5,337,100) |
| Mar 31, 2020 | 1.70 | = | 9,482,200) | ÷ | 5,585,500) |
| Mar 31, 2019 | 1.95 | = | 10,307,000) | ÷ | 5,287,500) |
| Mar 31, 2018 | 0.94 | = | 3,068,300) | ÷ | 3,279,800) |
| Mar 31, 2017 | 0.90 | = | 2,950,476) | ÷ | 3,270,711) |
| Mar 31, 2016 | 1.15 | = | 2,483,037) | ÷ | 2,150,919) |
| Mar 31, 2015 | 0.89 | = | 1,826,858) | ÷ | 2,044,654) |
| Mar 31, 2014 | 0.48 | = | 1,020,758) | ÷ | 2,135,461) |
| Mar 31, 2013 | 0.51 | = | 983,385) | ÷ | 1,933,470) |
| Mar 31, 2012 | 0.18 | = | 355,050) | ÷ | 1,990,673) |
| Mar 31, 2011 | 0.19 | = | 347,334) | ÷ | 1,812,438) |
| Mar 31, 2010 | 0.22 | = | 340,672) | ÷ | 1,533,380) |
| Mar 31, 2009 | 1.16 | = | 1,149,184) | ÷ | 990,766) |
| Mar 31, 2008 | 1.11 | = | 1,150,128) | ÷ | 1,036,223) |
| Mar 31, 2007 | 0.00 | = | —) | ÷ | 2,004,368) |
| Mar 31, 2006 | 0.16 | = | 268,954) | ÷ | 1,726,189) |
| Mar 31, 2005 | 0.03 | = | 45,454) | ÷ | 1,485,734) |
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 capital structure exhibits a cyclical pattern of debt accumulation followed by periods of deleveraging over the seventeen-year period analyzed. The debt-to-equity ratio demonstrates significant volatility, shifting from a highly conservative position in 2005 to a peak leverage level in 2019, before beginning a gradual descent toward 2022.
- Initial Leverage and First Volatility Cycle (2005–2012)
- Between 2005 and 2007, leverage remained low, with the debt-to-equity ratio starting at 0.03. A sharp increase occurred in 2008, where total debt rose to approximately 1.15 billion US dollars, driving the ratio to 1.11. This leverage remained elevated in 2009 at 1.16 before a substantial reduction in total debt occurred by 2010. From 2010 to 2012, the ratio stabilized at low levels between 0.18 and 0.22 as total debt was maintained around 340 to 355 million US dollars while stockholders' equity grew.
- Gradual Expansion of Debt (2013–2018)
- A sustained upward trend in borrowing began in 2013, with total debt increasing from 983 million US dollars to over 3 billion US dollars by 2018. Consequently, the debt-to-equity ratio rose from 0.51 in 2013 to 0.94 by 2018. Despite a significant increase in stockholders' equity during this period, the pace of debt accumulation generally outstripped equity growth, leading to a higher reliance on borrowed capital.
- Peak Leverage and Subsequent Deleveraging (2019–2022)
- A dramatic shift in the balance sheet occurred in 2019, as total debt surged to 10.3 billion US dollars, resulting in a peak debt-to-equity ratio of 1.95. This represents the highest level of financial leverage in the reported history. Following this peak, a consistent deleveraging trend is observed from 2020 through 2022. Total debt decreased steadily to 7.68 billion US dollars by March 31, 2022, while stockholders' equity continued to rise to 5.89 billion US dollars, effectively reducing the debt-to-equity ratio to 1.30.
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Comparison to Competitors
Microchip Technology Inc., debt to equity, 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 | 1.30 | 0.05 | 0.18 | 0.45 | 1.74 | 0.41 | 4.75 | 0.80 | 0.29 | 0.14 | 0.41 | 0.86 | 0.60 |
| Mar 31, 2021 | 1.67 | 0.04 | 0.18 | 0.45 | 1.59 | 0.40 | 1.02 | 0.83 | 0.14 | 0.15 | 0.41 | 1.58 | 0.58 |
| Mar 31, 2020 | 1.70 | 0.06 | 0.43 | 0.52 | 1.72 | 0.45 | 1.30 | 1.12 | 0.17 | 0.17 | 0.16 | 2.59 | 0.74 |
| Mar 31, 2019 | 1.95 | 0.17 | 0.47 | 0.65 | 1.32 | 0.37 | 1.29 | 0.96 | 0.24 | 0.16 | 0.21 | 3.25 | 0.65 |
| Mar 31, 2018 | 0.94 | 0.99 | 0.58 | 0.78 | 0.66 | 0.35 | 1.38 | 0.37 | 0.00 | 0.14 | 0.27 | 17.64 | 0.56 |
| Mar 31, 2017 | 0.90 | 2.28 | 0.77 | 0.57 | 0.87 | 0.39 | 2.21 | 0.40 | 0.00 | 0.60 | 0.48 | 0.71 | 0.39 |
| Mar 31, 2016 | 1.15 | 3.45 | 0.34 | 0.46 | 0.72 | 0.38 | 4.44 | 0.74 | 0.00 | 0.82 | 0.32 | 0.37 | 0.34 |
| Mar 31, 2015 | 0.89 | — | 0.17 | 0.60 | 0.84 | 0.37 | 7.57 | 0.46 | 0.00 | 0.60 | 0.32 | 0.35 | 0.41 |
| Mar 31, 2014 | 0.48 | 11.83 | 0.18 | 0.25 | 1.70 | 0.25 | 0.20 | 0.27 | 0.00 | 0.61 | 0.31 | 0.00 | 0.45 |
| Mar 31, 2013 | 0.51 | 3.78 | 0.18 | 0.27 | 0.00 | 0.23 | 0.21 | 0.29 | 0.00 | 0.66 | 0.00 | 0.00 | 0.48 |
| Mar 31, 2012 | 0.18 | 3.80 | 0.20 | 0.27 | 0.00 | 0.26 | 0.23 | 0.25 | 0.00 | 0.42 | 0.01 | 0.00 | 0.52 |
| Mar 31, 2011 | 0.19 | 1.27 | 0.23 | 0.22 | 0.00 | 0.16 | 0.26 | 0.30 | 0.00 | 0.24 | 0.01 | 0.04 | 0.51 |
| Mar 31, 2010 | 0.22 | 2.39 | 0.13 | 0.03 | 0.15 | 0.04 | 0.33 | 0.01 | 0.00 | 0.29 | 0.01 | 0.05 | 0.00 |
| Mar 31, 2009 | 1.16 | 7.30 | 0.00 | 0.03 | 0.57 | 0.05 | 0.34 | 0.03 | 0.00 | 0.67 | 0.01 | 0.00 | 0.00 |
| Mar 31, 2008 | 1.11 | — | 0.00 | 0.03 | — | 0.05 | 0.25 | 0.17 | 0.12 | 0.44 | 0.00 | 0.00 | 0.00 |
| Mar 31, 2007 | 0.00 | 1.76 | 0.00 | 0.03 | — | 0.05 | 0.00 | 0.21 | 0.13 | 0.31 | 0.00 | 0.00 | 0.00 |
| Mar 31, 2006 | 0.16 | 0.66 | 0.00 | 0.06 | — | 0.06 | 0.00 | 0.25 | 0.01 | 0.07 | 0.00 | 0.00 | 0.00 |
| Mar 31, 2005 | 0.03 | 0.41 | 0.00 | 0.05 | — | 0.07 | 0.00 | 0.00 | 0.01 | 0.20 | 0.00 | 0.00 | 0.06 |
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., debt to equity, long-term trends, comparison to sector (semiconductors & semiconductor equipment)
| Microchip Technology Inc. | Semiconductors & Semiconductor Equipment | |
|---|---|---|
| Mar 31, 2022 | 1.30 | 0.43 |
| Mar 31, 2021 | 1.67 | 0.49 |
| Mar 31, 2020 | 1.70 | 0.60 |
| Mar 31, 2019 | 1.95 | 0.56 |
| Mar 31, 2018 | 0.94 | 0.49 |
| Mar 31, 2017 | 0.90 | 0.56 |
| Mar 31, 2016 | 1.15 | 0.47 |
| Mar 31, 2015 | 0.89 | 0.43 |
| Mar 31, 2014 | 0.48 | 0.26 |
| Mar 31, 2013 | 0.51 | 0.22 |
| Mar 31, 2012 | 0.18 | 0.22 |
| Mar 31, 2011 | 0.19 | 0.18 |
| Mar 31, 2010 | 0.22 | 0.09 |
| Mar 31, 2009 | 1.16 | 0.12 |
| Mar 31, 2008 | 1.11 | 0.12 |
| Mar 31, 2007 | 0.00 | 0.11 |
| Mar 31, 2006 | 0.16 | 0.08 |
| Mar 31, 2005 | 0.03 | 0.07 |
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., debt to equity, long-term trends, comparison to industry (information technology)
| Microchip Technology Inc. | Information Technology | |
|---|---|---|
| Mar 31, 2022 | 1.30 | 0.70 |
| Mar 31, 2021 | 1.67 | 0.82 |
| Mar 31, 2020 | 1.70 | 0.95 |
| Mar 31, 2019 | 1.95 | 0.97 |
| Mar 31, 2018 | 0.94 | 0.82 |
| Mar 31, 2017 | 0.90 | 0.80 |
| Mar 31, 2016 | 1.15 | 0.65 |
| Mar 31, 2015 | 0.89 | 0.56 |
| Mar 31, 2014 | 0.48 | 0.38 |
| Mar 31, 2013 | 0.51 | 0.28 |
| Mar 31, 2012 | 0.18 | 0.24 |
| Mar 31, 2011 | 0.19 | 0.27 |
| Mar 31, 2010 | 0.22 | 0.24 |
| Mar 31, 2009 | 1.16 | 0.25 |
| Mar 31, 2008 | 1.11 | 0.28 |
| Mar 31, 2007 | 0.00 | 0.26 |
| Mar 31, 2006 | 0.16 | 0.19 |
| Mar 31, 2005 | 0.03 | 0.15 |
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).