Stock Analysis on Net

Microchip Technology Inc. (NASDAQ:MCHP)

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

Analysis of Short-term (Operating) Activity Ratios 

Microsoft Excel

Short-term Activity Ratios (Summary)

Microchip Technology Inc., short-term (operating) activity ratios

Microsoft Excel
Mar 31, 2022 Mar 31, 2021 Mar 31, 2020 Mar 31, 2019 Mar 31, 2018 Mar 31, 2017
Turnover Ratios
Inventory turnover 2.78 3.10 2.96 3.40 3.28 3.96
Receivables turnover 6.36 5.45 5.65 6.07 7.06 7.12
Payables turnover 6.88 7.04 8.23 10.68 10.83 11.06
Working capital turnover 6.47 9.10 2.97 2.13
Average No. Days
Average inventory processing period 132 118 123 107 111 92
Add: Average receivable collection period 57 67 65 60 52 51
Operating cycle 189 185 188 167 163 143
Less: Average payables payment period 53 52 44 34 34 33
Cash conversion cycle 136 133 144 133 129 110

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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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

Microsoft Excel
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 + 5753 = 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.