Analysis of Short-term (Operating) Activity Ratios
Activity ratios measure how efficiently a company performs day-to-day tasks, such us the collection of receivables and management of inventory.
Short-term Activity Ratios (Summary)
Microchip Technology Inc., short-term (operating) activity ratios
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).
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Microchip Technology Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Microchip Technology Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Microchip Technology Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Microchip Technology Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Microchip Technology Inc. number of days of receivables outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Microchip Technology Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Microchip Technology Inc. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Microchip Technology Inc. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |
Inventory Turnover
Microchip Technology Inc., inventory turnover 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) | |||||||
| Cost of sales | 2,371,300) | 2,059,600) | 2,032,100) | 2,418,200) | 1,560,100) | 1,650,611) | |
| Inventories | 854,400) | 665,000) | 685,700) | 711,700) | 476,200) | 417,202) | |
| Short-term Activity Ratio | |||||||
| Inventory turnover1 | 2.78 | 3.10 | 2.96 | 3.40 | 3.28 | 3.96 | |
| Benchmarks | |||||||
| Inventory Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 3.45 | 4.35 | 3.87 | 3.93 | 4.77 | — | |
| Analog Devices Inc. | 3.20 | 2.33 | 3.14 | 3.24 | 3.35 | 3.71 | |
| Applied Materials Inc. | 2.33 | 2.82 | 2.44 | 2.37 | 2.54 | 2.73 | |
| Broadcom Inc. | 5.77 | 8.18 | 10.34 | 11.57 | 9.00 | 6.31 | |
| First Solar Inc. | 4.10 | 3.29 | 3.58 | 5.67 | 4.77 | — | |
| Intel Corp. | 2.74 | 3.27 | 4.06 | 3.41 | 3.74 | — | |
| KLA Corp. | 1.67 | 1.76 | 1.87 | 1.48 | 1.55 | 1.76 | |
| Lam Research Corp. | 2.36 | 2.91 | 2.86 | 3.44 | 3.15 | 3.58 | |
| Micron Technology Inc. | 2.53 | 3.85 | 2.65 | 2.48 | 3.48 | 3.81 | |
| NVIDIA Corp. | 3.62 | 3.44 | 4.24 | 2.89 | 4.89 | — | |
| ON Semiconductor Corp. | 2.63 | 2.92 | 2.83 | 2.88 | 2.97 | — | |
| Qualcomm Inc. | 2.94 | 4.42 | 3.56 | 6.14 | 6.05 | 4.81 | |
| Texas Instruments Inc. | 2.27 | 3.12 | 2.66 | 2.61 | 2.48 | — | |
| Inventory Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 2.82 | 3.48 | 3.44 | 3.36 | 3.72 | — | |
| Inventory Turnover, Industry | |||||||
| Information Technology | 9.60 | 11.40 | 12.09 | 12.18 | 12.52 | — | |
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
Inventory turnover = Cost of sales ÷ Inventories
= 2,371,300 ÷ 854,400 = 2.78
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Inventory turnover | An activity ratio calculated as cost of goods sold divided by inventory. | Microchip Technology Inc. inventory turnover ratio improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Receivables Turnover
Microchip Technology Inc., receivables turnover 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 sales | 6,820,900) | 5,438,400) | 5,274,200) | 5,349,500) | 3,980,800) | 3,407,807) | |
| Accounts receivable, net | 1,072,600) | 997,700) | 934,000) | 880,600) | 563,700) | 478,373) | |
| Short-term Activity Ratio | |||||||
| Receivables turnover1 | 6.36 | 5.45 | 5.65 | 6.07 | 7.06 | 7.12 | |
| Benchmarks | |||||||
| Receivables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 5.72 | 6.07 | 4.73 | 3.62 | 5.24 | — | |
| Analog Devices Inc. | 6.67 | 5.02 | 7.60 | 9.43 | 9.69 | 7.41 | |
| Applied Materials Inc. | 4.25 | 4.66 | 5.81 | 5.77 | 6.73 | 6.22 | |
| Broadcom Inc. | 11.22 | 13.25 | 10.40 | 6.93 | 6.27 | 7.20 | |
| First Solar Inc. | 8.08 | 6.81 | 10.19 | 6.45 | 17.49 | — | |
| Intel Corp. | 15.26 | 8.36 | 11.48 | 9.40 | 10.54 | — | |
| KLA Corp. | 5.08 | 5.30 | 5.24 | 4.61 | 6.19 | 6.09 | |
| Lam Research Corp. | 3.99 | 4.83 | 4.79 | 6.63 | 5.09 | 4.79 | |
| Micron Technology Inc. | 6.45 | 5.63 | 6.13 | 8.43 | 6.01 | 5.82 | |
| NVIDIA Corp. | 5.79 | 6.86 | 6.59 | 8.23 | 7.68 | — | |
| ON Semiconductor Corp. | 9.89 | 8.33 | 7.77 | 7.83 | 8.57 | — | |
| Qualcomm Inc. | 10.59 | 15.16 | 8.76 | 23.21 | 7.98 | 6.23 | |
| Texas Instruments Inc. | 10.57 | 10.78 | 10.23 | 13.39 | 13.08 | — | |
| Receivables Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 7.57 | 7.49 | 8.09 | 8.44 | 7.84 | — | |
| Receivables Turnover, Industry | |||||||
| Information Technology | 7.78 | 7.90 | 8.42 | 7.73 | 8.01 | — | |
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
Receivables turnover = Net sales ÷ Accounts receivable, net
= 6,820,900 ÷ 1,072,600 = 6.36
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Receivables turnover | An activity ratio equal to revenue divided by receivables. | Microchip Technology Inc. receivables turnover ratio deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Payables Turnover
Microchip Technology Inc., payables turnover 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) | |||||||
| Cost of sales | 2,371,300) | 2,059,600) | 2,032,100) | 2,418,200) | 1,560,100) | 1,650,611) | |
| Accounts payable | 344,700) | 292,400) | 246,800) | 226,400) | 144,100) | 149,233) | |
| Short-term Activity Ratio | |||||||
| Payables turnover1 | 6.88 | 7.04 | 8.23 | 10.68 | 10.83 | 11.06 | |
| Benchmarks | |||||||
| Payables Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 5.21 | 6.44 | 11.57 | 3.91 | 7.63 | — | |
| Analog Devices Inc. | 7.70 | 6.30 | 8.42 | 8.78 | 7.54 | 8.65 | |
| Applied Materials Inc. | 7.86 | 8.25 | 8.46 | 8.58 | 9.47 | 8.47 | |
| Broadcom Inc. | 11.13 | 9.77 | 12.41 | 11.83 | 12.47 | 8.26 | |
| First Solar Inc. | 7.47 | 11.34 | 11.08 | 11.53 | 7.94 | — | |
| Intel Corp. | 3.77 | 6.13 | 6.14 | 7.23 | 7.09 | — | |
| KLA Corp. | 8.10 | 8.10 | 9.27 | 9.24 | 8.55 | 8.74 | |
| Lam Research Corp. | 9.25 | 9.43 | 9.18 | 14.06 | 11.57 | 9.49 | |
| Micron Technology Inc. | 7.87 | 9.91 | 6.79 | 7.58 | 7.39 | 8.92 | |
| NVIDIA Corp. | 5.29 | 5.23 | 6.04 | 8.89 | 6.53 | — | |
| ON Semiconductor Corp. | 4.99 | 6.34 | 6.18 | 6.52 | 5.42 | — | |
| Qualcomm Inc. | 4.91 | 5.19 | 4.12 | 6.29 | 5.61 | 4.97 | |
| Texas Instruments Inc. | 7.35 | 10.45 | 12.51 | 13.45 | 11.52 | — | |
| Payables Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 5.61 | 7.08 | 7.04 | 7.90 | 7.75 | — | |
| Payables Turnover, Industry | |||||||
| Information Technology | 4.79 | 5.29 | 5.58 | 5.31 | 4.93 | — | |
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
Payables turnover = Cost of sales ÷ Accounts payable
= 2,371,300 ÷ 344,700 = 6.88
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Payables turnover | An activity ratio calculated as cost of goods sold divided by payables. | Microchip Technology Inc. payables turnover ratio decreased from 2020 to 2021 and from 2021 to 2022. |
Working Capital Turnover
Microchip Technology Inc., working capital turnover 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 assets | 2,452,600) | 2,145,200) | 2,217,200) | 2,214,800) | 3,356,300) | 2,305,040) | |
| Less: Current liabilities | 1,399,000) | 2,409,600) | 1,637,400) | 2,374,500) | 2,017,400) | 704,450) | |
| Working capital | 1,053,600) | (264,400) | 579,800) | (159,700) | 1,338,900) | 1,600,590) | |
| Net sales | 6,820,900) | 5,438,400) | 5,274,200) | 5,349,500) | 3,980,800) | 3,407,807) | |
| Short-term Activity Ratio | |||||||
| Working capital turnover1 | 6.47 | — | 9.10 | — | 2.97 | 2.13 | |
| Benchmarks | |||||||
| Working Capital Turnover, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 2.73 | 3.78 | 2.62 | 3.01 | 4.16 | — | |
| Analog Devices Inc. | 4.81 | 2.81 | 4.86 | 12.57 | 8.78 | 6.76 | |
| Applied Materials Inc. | 3.02 | 2.36 | 1.93 | 2.54 | 2.58 | 1.65 | |
| Broadcom Inc. | 2.90 | 2.66 | 4.32 | 7.49 | 3.08 | 1.33 | |
| First Solar Inc. | 0.95 | 1.19 | 1.25 | 1.34 | 0.74 | — | |
| Intel Corp. | 3.45 | 2.61 | 3.46 | 8.06 | 5.83 | — | |
| KLA Corp. | 2.14 | 1.93 | 1.92 | 1.79 | 1.21 | 1.12 | |
| Lam Research Corp. | 2.23 | 1.80 | 1.31 | 1.56 | 1.85 | 1.29 | |
| Micron Technology Inc. | 2.16 | 2.05 | 1.89 | 2.31 | 2.95 | 2.85 | |
| NVIDIA Corp. | 1.10 | 1.37 | 0.92 | 1.27 | 1.20 | — | |
| ON Semiconductor Corp. | 2.27 | 3.01 | 3.48 | 4.59 | 3.46 | — | |
| Qualcomm Inc. | 4.99 | 4.13 | 2.39 | 3.10 | 3.70 | 0.68 | |
| Texas Instruments Inc. | 1.81 | 1.65 | 1.84 | 2.17 | 2.81 | — | |
| Working Capital Turnover, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 2.51 | 2.37 | 2.35 | 3.29 | 3.10 | — | |
| Working Capital Turnover, Industry | |||||||
| Information Technology | 5.50 | 3.84 | 2.82 | 3.06 | 2.78 | — | |
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
Working capital turnover = Net sales ÷ Working capital
= 6,820,900 ÷ 1,053,600 = 6.47
2 Click competitor name to see calculations.
Average Inventory Processing Period
Microchip Technology Inc., average inventory processing period 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 | |||||||
| Inventory turnover | 2.78 | 3.10 | 2.96 | 3.40 | 3.28 | 3.96 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average inventory processing period1 | 132 | 118 | 123 | 107 | 111 | 92 | |
| Benchmarks (no. days) | |||||||
| Average Inventory Processing Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 106 | 84 | 94 | 93 | 77 | — | |
| Analog Devices Inc. | 114 | 157 | 116 | 113 | 109 | 98 | |
| Applied Materials Inc. | 157 | 129 | 150 | 154 | 144 | 134 | |
| Broadcom Inc. | 63 | 45 | 35 | 32 | 41 | 58 | |
| First Solar Inc. | 89 | 111 | 102 | 64 | 76 | — | |
| Intel Corp. | 133 | 112 | 90 | 107 | 98 | — | |
| KLA Corp. | 218 | 207 | 195 | 247 | 235 | 208 | |
| Lam Research Corp. | 155 | 126 | 128 | 106 | 116 | 102 | |
| Micron Technology Inc. | 144 | 95 | 138 | 147 | 105 | 96 | |
| NVIDIA Corp. | 101 | 106 | 86 | 126 | 75 | — | |
| ON Semiconductor Corp. | 139 | 125 | 129 | 127 | 123 | — | |
| Qualcomm Inc. | 124 | 83 | 102 | 59 | 60 | 76 | |
| Texas Instruments Inc. | 161 | 117 | 137 | 140 | 147 | — | |
| Average Inventory Processing Period, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 129 | 105 | 106 | 109 | 98 | — | |
| Average Inventory Processing Period, Industry | |||||||
| Information Technology | 38 | 32 | 30 | 30 | 29 | — | |
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
Average inventory processing period = 365 ÷ Inventory turnover
= 365 ÷ 2.78 = 132
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average inventory processing period | An activity ratio equal to the number of days in the period divided by inventory turnover over the period. | Microchip Technology Inc. number of days of inventory outstanding improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Receivable Collection Period
Microchip Technology Inc., average receivable collection period 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 | |||||||
| Receivables turnover | 6.36 | 5.45 | 5.65 | 6.07 | 7.06 | 7.12 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average receivable collection period1 | 57 | 67 | 65 | 60 | 52 | 51 | |
| Benchmarks (no. days) | |||||||
| Average Receivable Collection Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 64 | 60 | 77 | 101 | 70 | — | |
| Analog Devices Inc. | 55 | 73 | 48 | 39 | 38 | 49 | |
| Applied Materials Inc. | 86 | 78 | 63 | 63 | 54 | 59 | |
| Broadcom Inc. | 33 | 28 | 35 | 53 | 58 | 51 | |
| First Solar Inc. | 45 | 54 | 36 | 57 | 21 | — | |
| Intel Corp. | 24 | 44 | 32 | 39 | 35 | — | |
| KLA Corp. | 72 | 69 | 70 | 79 | 59 | 60 | |
| Lam Research Corp. | 91 | 76 | 76 | 55 | 72 | 76 | |
| Micron Technology Inc. | 57 | 65 | 59 | 43 | 61 | 63 | |
| NVIDIA Corp. | 63 | 53 | 55 | 44 | 48 | — | |
| ON Semiconductor Corp. | 37 | 44 | 47 | 47 | 43 | — | |
| Qualcomm Inc. | 34 | 24 | 42 | 16 | 46 | 59 | |
| Texas Instruments Inc. | 35 | 34 | 36 | 27 | 28 | — | |
| Average Receivable Collection Period, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 48 | 49 | 45 | 43 | 47 | — | |
| Average Receivable Collection Period, Industry | |||||||
| Information Technology | 47 | 46 | 43 | 47 | 46 | — | |
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
Average receivable collection period = 365 ÷ Receivables turnover
= 365 ÷ 6.36 = 57
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average receivable collection period | An activity ratio equal to the number of days in the period divided by receivables turnover. | Microchip Technology Inc. number of days of receivables outstanding deteriorated from 2020 to 2021 but then improved from 2021 to 2022 exceeding 2020 level. |
Operating Cycle
Microchip Technology Inc., operating cycle calculation, comparison to benchmarks
No. days
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 132 | 118 | 123 | 107 | 111 | 92 | |
| Average receivable collection period | 57 | 67 | 65 | 60 | 52 | 51 | |
| Short-term Activity Ratio | |||||||
| Operating cycle1 | 189 | 185 | 188 | 167 | 163 | 143 | |
| Benchmarks | |||||||
| Operating Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 170 | 144 | 171 | 194 | 147 | — | |
| Analog Devices Inc. | 169 | 230 | 164 | 152 | 147 | 147 | |
| Applied Materials Inc. | 243 | 207 | 213 | 217 | 198 | 193 | |
| Broadcom Inc. | 96 | 73 | 70 | 85 | 99 | 109 | |
| First Solar Inc. | 134 | 165 | 138 | 121 | 97 | — | |
| Intel Corp. | 157 | 156 | 122 | 146 | 133 | — | |
| KLA Corp. | 290 | 276 | 265 | 326 | 294 | 268 | |
| Lam Research Corp. | 246 | 202 | 204 | 161 | 188 | 178 | |
| Micron Technology Inc. | 201 | 160 | 197 | 190 | 166 | 159 | |
| NVIDIA Corp. | 164 | 159 | 141 | 170 | 123 | — | |
| ON Semiconductor Corp. | 176 | 169 | 176 | 174 | 166 | — | |
| Qualcomm Inc. | 158 | 107 | 144 | 75 | 106 | 135 | |
| Texas Instruments Inc. | 196 | 151 | 173 | 167 | 175 | — | |
| Operating Cycle, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 177 | 154 | 151 | 152 | 145 | — | |
| Operating Cycle, Industry | |||||||
| Information Technology | 85 | 78 | 73 | 77 | 75 | — | |
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
Operating cycle = Average inventory processing period + Average receivable collection period
= 132 + 57 = 189
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Operating cycle | Equal to average inventory processing period plus average receivables collection period. | Microchip Technology Inc. operating cycle improved from 2020 to 2021 but then deteriorated significantly from 2021 to 2022. |
Average Payables Payment Period
Microchip Technology Inc., average payables payment period 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 | |||||||
| Payables turnover | 6.88 | 7.04 | 8.23 | 10.68 | 10.83 | 11.06 | |
| Short-term Activity Ratio (no. days) | |||||||
| Average payables payment period1 | 53 | 52 | 44 | 34 | 34 | 33 | |
| Benchmarks (no. days) | |||||||
| Average Payables Payment Period, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 70 | 57 | 32 | 93 | 48 | — | |
| Analog Devices Inc. | 47 | 58 | 43 | 42 | 48 | 42 | |
| Applied Materials Inc. | 46 | 44 | 43 | 43 | 39 | 43 | |
| Broadcom Inc. | 33 | 37 | 29 | 31 | 29 | 44 | |
| First Solar Inc. | 49 | 32 | 33 | 32 | 46 | — | |
| Intel Corp. | 97 | 60 | 59 | 51 | 51 | — | |
| KLA Corp. | 45 | 45 | 39 | 40 | 43 | 42 | |
| Lam Research Corp. | 39 | 39 | 40 | 26 | 32 | 38 | |
| Micron Technology Inc. | 46 | 37 | 54 | 48 | 49 | 41 | |
| NVIDIA Corp. | 69 | 70 | 60 | 41 | 56 | — | |
| ON Semiconductor Corp. | 73 | 58 | 59 | 56 | 67 | — | |
| Qualcomm Inc. | 74 | 70 | 89 | 58 | 65 | 73 | |
| Texas Instruments Inc. | 50 | 35 | 29 | 27 | 32 | — | |
| Average Payables Payment Period, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 65 | 52 | 52 | 46 | 47 | — | |
| Average Payables Payment Period, Industry | |||||||
| Information Technology | 76 | 69 | 65 | 69 | 74 | — | |
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
Average payables payment period = 365 ÷ Payables turnover
= 365 ÷ 6.88 = 53
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Average payables payment period | An estimate of the average number of days it takes a company to pay its suppliers; equal to the number of days in the period divided by payables turnover ratio for the period. | Microchip Technology Inc. number of days of payables outstanding increased from 2020 to 2021 and from 2021 to 2022. |
Cash Conversion Cycle
Microchip Technology Inc., cash conversion cycle calculation, comparison to benchmarks
No. days
| Mar 31, 2022 | Mar 31, 2021 | Mar 31, 2020 | Mar 31, 2019 | Mar 31, 2018 | Mar 31, 2017 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data | |||||||
| Average inventory processing period | 132 | 118 | 123 | 107 | 111 | 92 | |
| Average receivable collection period | 57 | 67 | 65 | 60 | 52 | 51 | |
| Average payables payment period | 53 | 52 | 44 | 34 | 34 | 33 | |
| Short-term Activity Ratio | |||||||
| Cash conversion cycle1 | 136 | 133 | 144 | 133 | 129 | 110 | |
| Benchmarks | |||||||
| Cash Conversion Cycle, Competitors2 | |||||||
| Advanced Micro Devices Inc. | 100 | 87 | 139 | 101 | 99 | — | |
| Analog Devices Inc. | 122 | 172 | 121 | 110 | 99 | 105 | |
| Applied Materials Inc. | 197 | 163 | 170 | 174 | 159 | 150 | |
| Broadcom Inc. | 63 | 36 | 41 | 54 | 70 | 65 | |
| First Solar Inc. | 85 | 133 | 105 | 89 | 51 | — | |
| Intel Corp. | 60 | 96 | 63 | 95 | 82 | — | |
| KLA Corp. | 245 | 231 | 226 | 286 | 251 | 226 | |
| Lam Research Corp. | 207 | 163 | 164 | 135 | 156 | 140 | |
| Micron Technology Inc. | 155 | 123 | 143 | 142 | 117 | 118 | |
| NVIDIA Corp. | 95 | 89 | 81 | 129 | 67 | — | |
| ON Semiconductor Corp. | 103 | 111 | 117 | 118 | 99 | — | |
| Qualcomm Inc. | 84 | 37 | 55 | 17 | 41 | 62 | |
| Texas Instruments Inc. | 146 | 116 | 144 | 140 | 143 | — | |
| Cash Conversion Cycle, Sector | |||||||
| Semiconductors & Semiconductor Equipment | 112 | 102 | 99 | 106 | 98 | — | |
| Cash Conversion Cycle, Industry | |||||||
| Information Technology | 9 | 9 | 8 | 8 | 1 | — | |
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
Cash conversion cycle = Average inventory processing period + Average receivable collection period – Average payables payment period
= 132 + 57 – 53 = 136
2 Click competitor name to see calculations.
| Short-term activity ratio | Description | The company |
|---|---|---|
| Cash conversion cycle | A financial metric that measures the length of time required for a company to convert cash invested in its operations to cash received as a result of its operations; equal to average inventory processing period plus average receivables collection period minus average payables payment period. | Microchip Technology Inc. cash conversion cycle improved from 2020 to 2021 but then slightly deteriorated from 2021 to 2022. |