Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

$22.49

This company has been moved to the archive! The financial data has not been updated since February 2, 2023.

Debt to Equity
since 2005

Microsoft Excel

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Calculation

Microchip Technology Inc., debt to equity, long-term trends, calculation

Microsoft Excel

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


Total Debt
The total debt exhibits significant fluctuations throughout the period. Starting at US$45.5 million in 2005, it sharply increased to over US$1.15 billion in 2008 and 2009. Subsequently, there was a reduction to around US$340-355 million during 2010 through 2012. Debt levels rose again from 2013, reaching a peak of approximately US$10.3 billion in 2019, followed by a decline to about US$7.7 billion by 2022. This pattern indicates periods of aggressive debt accumulation interspersed with partial deleveraging.
Stockholders’ Equity
Stockholders' equity generally increased over the timeframe. Beginning at approximately US$1.49 billion in 2005, it experienced a decline around 2008 and 2009, reaching just under US$1 billion. From 2010 onwards, equity steadily rose, with more pronounced growth after 2016, culminating in around US$5.9 billion by 2022. This suggests a strengthening of the company’s net asset base, especially in the latter years.
Debt to Equity Ratio
The debt to equity ratio mirrors the trends observed in debt and equity. Initially very low at 0.03 in 2005, it surged above 1.1 in 2008 and 2009, indicating high leverage. The ratio decreased substantially to below 0.2 from 2010 to 2012, reflecting reduced leverage during that period. From 2013 onwards, leverage increased again, peaking at nearly 2.0 in 2019, which signifies a high level of debt relative to equity. However, a declining trend is seen from 2020 to 2022, ending at 1.3, which may indicate efforts to moderate leverage.
Overall Insights
The financial data reveal cycles of debt accumulation and reduction, with debt and equity levels both growing substantially over the long term. The periods of high leverage around 2008-2009 and 2018-2019 suggest strategic financing decisions possibly linked to expansion or acquisitions. The general increase in equity supports the company’s financial stability, though leverage remains relatively elevated post-2013 compared to the early years. The recent downward trend in debt to equity ratios may imply a shift towards a more conservative capital structure.

Comparison to Competitors

Microchip Technology Inc., debt to equity, long-term trends, comparison to competitors

Microsoft Excel

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)

Microsoft Excel

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)

Microsoft Excel

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).