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Microchip Technology Inc key statistics and ratios

In fiscal 2026, Microchip Technology Inc had return on equity of 3.4%, an operating margin of 10.4%, debt equal to 86.1% of equity and a current ratio of 2.09. Each ratio below is calculated from the figures on its income statement, balance sheet and cash flow pages.

Financial ratios

US$ thousands unless shown otherwise. Fiscal years, plus the last twelve months (LTM) when newer.

Fiscal year2010Mar 20102011Mar 20112012Mar 20122013Mar 20132014Mar 20142015Mar 20152016Mar 20162017Mar 20172018Mar 20182019Mar 20192020Mar 20202021Mar 20212022Mar 20222023Mar 20232024Mar 20242025Mar 20252026Mar 2026LTMJun 2026
Gross margin56.4%59.3%57.8%53.0%58.4%57.3%55.5%51.6%60.8%54.8%61.5%62.1%65.2%67.5%65.4%56.1%57.7%60.2%
Operating margin25.8%31.9%28.7%11.3%23.8%19.8%16.2%8.1%23.5%13.4%12.3%18.4%27.1%36.9%33.7%6.7%10.4%15.5%
Net margin22.9%28.2%24.3%8.1%20.5%17.2%14.9%4.8%6.4%6.7%10.8%6.4%18.8%26.5%25.0%−0.0%4.9%9.3%
Free-cash-flow margin46.1%38.1%29.4%28.7%34.6%33.3%33.9%30.8%30.5%27.0%28.0%33.5%36.3%37.1%34.2%17.5%18.5%21.7%
Return on equity14.2%25.0%17.7%6.5%19.4%34.4%—10.1%7.8%8.3%10.5%6.4%22.9%36.1%29.0%−0.0%3.4%7.4%
Return on assets8.6%15.3%11.1%3.7%10.0%8.3%6.3%2.5%3.2%2.7%3.2%2.1%7.9%13.7%11.8%−0.0%1.5%3.3%
Asset turnover0.380.540.460.460.490.490.420.520.500.400.290.320.420.520.470.280.320.36
Current ratio7.925.228.136.555.867.538.113.271.660.931.350.891.750.981.202.592.091.92
Debt to equity0.0%0.0%0.0%32.1%16.3%>999%—90.2%136.6%220.5%189.7%172.6%133.0%99.3%90.4%80.0%86.1%83.7%
Interest cover (operating income ÷ interest)7.9x15.0x11.6x4.4x9.4x6.9x3.4x1.9x4.7x1.4x1.3x2.8x7.2x15.3x13.0x1.1x2.2x3.7x
Effective tax rate8.7%6.8%11.3%16.3%8.6%−5.6%−15.1%—65.4%——−2.9%13.3%23.1%19.4%—15.9%17.4%
R&D as % of revenue12.7%11.5%13.2%16.1%15.8%16.3%17.1%16.0%13.3%15.4%16.6%15.4%14.5%13.3%14.4%22.4%23.0%22.2%
SG&A as % of revenue17.6%14.9%15.1%16.5%13.8%12.8%13.9%14.7%11.4%12.8%12.8%11.2%10.5%9.5%9.6%14.0%14.3%13.7%
Capital spending as % of revenue1.6%1.1%0.4%0.3%0.5%0.3%0.3%0.3%5.2%4.3%1.3%1.7%5.4%5.8%3.7%2.9%1.9%1.7%
Free cash flow ÷ net income201.2%135.1%120.6%356.9%168.9%193.6%227.5%637.5%474.9%406.3%258.7%522.0%192.3%140.1%136.7%—378.7%232.2%
Dividends ÷ net income115.0%61.3%79.1%214.9%71.1%77.6%89.8%191.6%132.1%96.8%61.4%111.1%39.2%31.1%47.8%—427.8%206.0%
Dividends and buybacks ÷ free cash flow57.2%45.4%65.5%60.2%42.1%40.1%88.8%30.1%27.8%23.8%23.7%21.3%37.6%52.4%72.6%138.9%113.0%88.7%

Returns use average equity or assets over the year. Return on equity is left blank when equity is negative or so small that the ratio says nothing (above ±200%); interest cover is left blank above 200 times. Price-based ratios such as P/E are on the valuation page.

Financial health

3 of 6 checks passed · June 30, 2026
What it owns · $14.4bn
Short-term assets $2.5bnLonger-term assets $11.9bn
What it owes, and who funded it · $7.7bn
Short-term liabilities $1.3bnShareholders' equity $6.5bn
  • Short-term assets cover short-term liabilities $2.5bn of assets due within a year against $1.3bn of liabilities due within a year.
  • Short-term assets cover long-term liabilities Not assessable from the reported split. Not assessable.
  • More cash than debt $272m of cash against $5.4bn of debt.
  • Debt below 40% of shareholders' equity Debt is 83% of equity.
  • Debt burden no higher than five years ago Debt to equity moved from 136% to 83% over five years.
  • A year's operating cash flow covers at least 20% of debt $1.2bn of operating cash flow against $5.4bn of debt.
  • Operating profit covers interest at least five times over Operating income of $795m against $213m of interest.

From Microchip Technology Inc's latest balance sheet as filed. Checks are fixed, documented rules (methodology), counted only where the company reports the figures — a dot means the filing doesn't break the item out. Descriptions of reported data, not advice.

Moat

77 /100

Strong moat

How hard Microchip Technology's competitive advantage looks for rivals to wear away, judged from 10 years of its own filings: returns on capital, pricing power, profit durability, cash conversion and discipline.

  • Returns on capital 20 / 20

    Cash operating profit has been a median 17.4% of total assets over 10 years.

  • Pricing power 18 / 20

    Gross margin has been a median 60.7%, moving by 4.2 percentage points (standard deviation) across 10 years.

  • Durability 7 / 20

    Operating margin has been a median 17.8%; its worst year was 2.6%.

  • Cash conversion 20 / 20

    Free cash flow was positive in 10 of 10 years, at a median 30.7% of revenue.

  • Discipline 12 / 20

    The diluted share count rose 9.5% over five years; stock-based pay has been a median 2.9% of revenue.

AI disruption exposure: Low. In this industry, the business rests on physical assets, regulated networks or products AI itself depends on.

A rules-based reading of reported figures, not a forecast and not investment advice. How the score is built: methodology.

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Figures from Microchip Technology Inc's SEC filings (10-K and 10-Q), retrieved October 20, 2026. How we read and check them: methodology and data sources. Not investment advice. Back to Microchip Technology Inc.