Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.

Solvency Ratios (Summary)
Debt to Equity
Debt to Equity (including Operating Lease Liability)
Debt to Capital
Debt to Capital (including Operating Lease Liability)
Debt to Assets
Debt to Assets (including Operating Lease Liability)
Financial Leverage
Interest Coverage
Fixed Charge Coverage

Microchip Technology Inc., solvency ratios

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Debt Ratios
	Debt to equity
	Debt to equity (including operating lease liability)
	Debt to capital
	Debt to capital (including operating lease liability)
	Debt to assets
	Debt to assets (including operating lease liability)
	Financial leverage
	Coverage Ratios
	Interest coverage
	Fixed charge coverage

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).

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Microchip Technology Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022.
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Microchip Technology Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Microchip Technology Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022.
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Microchip Technology Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Microchip Technology Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022.
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Microchip Technology Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Microchip Technology Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Microchip Technology Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022.
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Microchip Technology Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., debt to equity calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Current portion of long-term debt
	Long-term debt excluding current maturities
	Total debt

	Stockholders’ equity
	Solvency Ratio
	Debt to equity¹
	Benchmarks
	Debt to Equity, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Equity, Sector
	Semiconductors & Semiconductor Equipment
	Debt to Equity, Industry
	Information Technology

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).

¹ 2022 Calculation
Debt to equity = Total debt ÷ Stockholders’ equity
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to equity ratio	A solvency ratio calculated as total debt divided by total shareholders’ equity.	Microchip Technology Inc. debt to equity ratio improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., debt to equity (including operating lease liability) calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Current portion of long-term debt
	Long-term debt excluding current maturities
	Total debt
	Current portion of operating lease liabilities
	Non-current portion of operating lease liabilities (included in Other long-term liabilities)
	Total debt (including operating lease liability)

	Stockholders’ equity
	Solvency Ratio
	Debt to equity (including operating lease liability)¹
	Benchmarks
	Debt to Equity (including Operating Lease Liability), Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Equity (including Operating Lease Liability), Sector
	Semiconductors & Semiconductor Equipment
	Debt to Equity (including Operating Lease Liability), Industry
	Information Technology

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).

¹ 2022 Calculation
Debt to equity (including operating lease liability) = Total debt (including operating lease liability) ÷ Stockholders’ equity
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to equity ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total shareholders’ equity.	Microchip Technology Inc. debt to equity ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., debt to capital calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Current portion of long-term debt
	Long-term debt excluding current maturities
	Total debt
	Stockholders’ equity
	Total capital
	Solvency Ratio
	Debt to capital¹
	Benchmarks
	Debt to Capital, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Capital, Sector
	Semiconductors & Semiconductor Equipment
	Debt to Capital, Industry
	Information Technology

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).

¹ 2022 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to capital ratio	A solvency ratio calculated as total debt divided by total debt plus shareholders’ equity.	Microchip Technology Inc. debt to capital ratio improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., debt to capital (including operating lease liability) calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Current portion of long-term debt
	Long-term debt excluding current maturities
	Total debt
	Current portion of operating lease liabilities
	Non-current portion of operating lease liabilities (included in Other long-term liabilities)
	Total debt (including operating lease liability)
	Stockholders’ equity
	Total capital (including operating lease liability)
	Solvency Ratio
	Debt to capital (including operating lease liability)¹
	Benchmarks
	Debt to Capital (including Operating Lease Liability), Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Capital (including Operating Lease Liability), Sector
	Semiconductors & Semiconductor Equipment
	Debt to Capital (including Operating Lease Liability), Industry
	Information Technology

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).

¹ 2022 Calculation
Debt to capital (including operating lease liability) = Total debt (including operating lease liability) ÷ Total capital (including operating lease liability)
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to capital ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total debt (including operating lease liability) plus shareholders’ equity.	Microchip Technology Inc. debt to capital ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., debt to assets calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Current portion of long-term debt
	Long-term debt excluding current maturities
	Total debt

	Total assets
	Solvency Ratio
	Debt to assets¹
	Benchmarks
	Debt to Assets, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Assets, Sector
	Semiconductors & Semiconductor Equipment
	Debt to Assets, Industry
	Information Technology

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).

¹ 2022 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to assets ratio	A solvency ratio calculated as total debt divided by total assets.	Microchip Technology Inc. debt to assets ratio improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., debt to assets (including operating lease liability) calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Current portion of long-term debt
	Long-term debt excluding current maturities
	Total debt
	Current portion of operating lease liabilities
	Non-current portion of operating lease liabilities (included in Other long-term liabilities)
	Total debt (including operating lease liability)

	Total assets
	Solvency Ratio
	Debt to assets (including operating lease liability)¹
	Benchmarks
	Debt to Assets (including Operating Lease Liability), Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Debt to Assets (including Operating Lease Liability), Sector
	Semiconductors & Semiconductor Equipment
	Debt to Assets (including Operating Lease Liability), Industry
	Information Technology

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).

¹ 2022 Calculation
Debt to assets (including operating lease liability) = Total debt (including operating lease liability) ÷ Total assets
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Debt to assets ratio (including operating lease liability)	A solvency ratio calculated as total debt (including operating lease liability) divided by total assets.	Microchip Technology Inc. debt to assets ratio (including operating lease liability) improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., financial leverage calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Total assets
	Stockholders’ equity
	Solvency Ratio
	Financial leverage¹
	Benchmarks
	Financial Leverage, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Financial Leverage, Sector
	Semiconductors & Semiconductor Equipment
	Financial Leverage, Industry
	Information Technology

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).

¹ 2022 Calculation
Financial leverage = Total assets ÷ Stockholders’ equity
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Financial leverage ratio	A solvency ratio calculated as total assets divided by total shareholders’ equity.	Microchip Technology Inc. financial leverage ratio decreased from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., interest coverage calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Net income
	Less: Net loss from discontinued operations
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Solvency Ratio
	Interest coverage¹
	Benchmarks
	Interest Coverage, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Interest Coverage, Sector
	Semiconductors & Semiconductor Equipment
	Interest Coverage, Industry
	Information Technology

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).

¹ 2022 Calculation
Interest coverage = EBIT ÷ Interest expense
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Interest coverage ratio	A solvency ratio calculated as EBIT divided by interest payments.	Microchip Technology Inc. interest coverage ratio improved from 2020 to 2021 and from 2021 to 2022.

Microchip Technology Inc., fixed charge coverage calculation, comparison to benchmarks

		Mar 31, 2022	Mar 31, 2021	Mar 31, 2020	Mar 31, 2019	Mar 31, 2018	Mar 31, 2017
	Selected Financial Data (US$ in thousands)
	Net income
	Less: Net loss from discontinued operations
	Add: Income tax expense
	Add: Interest expense
	Earnings before interest and tax (EBIT)
	Add: Operating lease expense
	Earnings before fixed charges and tax

	Interest expense
	Operating lease expense
	Fixed charges
	Solvency Ratio
	Fixed charge coverage¹
	Benchmarks
	Fixed Charge Coverage, Competitors²
	Advanced Micro Devices Inc.
	Analog Devices Inc.
	Applied Materials Inc.
	Broadcom Inc.
	First Solar Inc.
	Intel Corp.
	KLA Corp.
	Lam Research Corp.
	Micron Technology Inc.
	NVIDIA Corp.
	ON Semiconductor Corp.
	Qualcomm Inc.
	Texas Instruments Inc.
	Fixed Charge Coverage, Sector
	Semiconductors & Semiconductor Equipment
	Fixed Charge Coverage, Industry
	Information Technology

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).

¹ 2022 Calculation
Fixed charge coverage = Earnings before fixed charges and tax ÷ Fixed charges
= ÷ =

² Click competitor name to see calculations.

Solvency ratio	Description	The company
Fixed charge coverage ratio	A solvency ratio calculated as earnings before fixed charges and tax divided by fixed charges.	Microchip Technology Inc. fixed charge coverage ratio improved from 2020 to 2021 and from 2021 to 2022.

	Microchip Technology Inc.	Other companies (not purchased previously)
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Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
Discounted Cash Flow (DCF) Valuation
Economic Value Added (EVA)
Long-term Trends
Analysis of Components of Financial Statements
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Financial Statements
Common-Size Financial Statements
Analysis of Financial Ratios
Relative Valuation
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Long-term Trends
Analysis of Components of Financial Statements
Financial Reporting Quality

Microchip Technology Inc. (NASDAQ:MCHP)

Analysis of Solvency Ratios

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Solvency Ratios (Summary)

Debt to Equity

Debt to Equity (including Operating Lease Liability)

Debt to Capital

Debt to Capital (including Operating Lease Liability)

Debt to Assets

Debt to Assets (including Operating Lease Liability)

Financial Leverage

Interest Coverage

Fixed Charge Coverage