What is Microchip Technology Inc.'s earnings per share (EPS)?

Microchip Technology Inc. (MCHP) reported diluted earnings per share of $-0.01 for fiscal year 2025. This represents a -100.3% change compared to the previous fiscal year. EPS represents the portion of a company's net income allocated to each outstanding share of common stock and is widely used to evaluate profitability on a per-share basis.

Microchip Technology Inc. Financials

MCHP

Source SEC Filings (10-K/10-Q) Updated Feb 5, 2026 Currency USD FYE March

This page shows Microchip Technology Inc. (MCHP) financial statements, including the income statement, balance sheet, cash flow statement, and key financial ratios. View 18 years of annual fundamentals and quarterly data, with year-over-year growth rates and compound annual growth rates (CAGR). All figures are derived from SEC filings (10-K and 10-Q reports).

Financial Health Signals

Financial Profile 42/100

Based on FY2025 annual data. Scores normalized against common benchmarks. How we calculate these scores

Profitability

Microchip Technology Inc. has an operating margin of 6.7%, meaning the company retains $7 of operating profit per $100 of revenue. This results in a moderate score of 37/100, indicating healthy but not exceptional operating efficiency. This is down from 33.7% the prior year.

Growth

Microchip Technology Inc.'s revenue declined 42.3% year-over-year, from $7.6B to $4.4B. This contraction results in a growth score of 0/100.

Leverage

Microchip Technology Inc. carries a low D/E ratio of 0.80, meaning only $0.80 of long-term debt for every $1 of shareholders' equity. This conservative leverage earns a score of 86/100, indicating a strong balance sheet with room for future borrowing.

Liquidity

Microchip Technology Inc.'s current ratio of 2.59 indicates adequate short-term liquidity, earning a score of 49/100. The company can meet its near-term obligations, though with limited headroom.

Cash Flow

Microchip Technology Inc. converts 17.5% of revenue into free cash flow ($772.1M). This strong cash generation earns a score of 69/100.

Returns

Microchip Technology Inc. generates a -0.0% ROE, indicating limited profit relative to shareholders' investment. This results in a returns score of 11/100. This is down from 28.6% the prior year.

Altman Z-Score Safe

3.37

Microchip Technology Inc. scores 3.37, well above the 2.99 safe threshold. The score is driven primarily by a large market capitalization ($32.5B) relative to total liabilities ($8.3B). This indicates low bankruptcy risk based on profitability, leverage, and asset efficiency.

Piotroski F-Score Weak

3/9

Microchip Technology Inc. passes 3 of 9 financial strength tests. 2 of 4 profitability signals pass, 1 of 3 leverage/liquidity signals pass, neither operating efficiency signal passes.

Earnings Quality Mixed

-1796.20x

For every $1 of reported earnings, Microchip Technology Inc. generates $-1796.20 in operating cash flow ($898.1M OCF vs -$500K net income). This mixed ratio suggests some earnings may rely on non-cash accounting items.

Interest Coverage At Risk

1.1x

Microchip Technology Inc. earns $1.1 in operating income for every $1 of interest expense ($296.3M vs $259.2M). This narrow margin raises concern about the company's ability to service its debt if operating income declines.

Key Financial Metrics

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Earnings & Revenue

Revenue

$4.4B

YoY-42.3%

5Y CAGR-3.6%

10Y CAGR+7.4%

Microchip Technology Inc. generated $4.4B in revenue in fiscal year 2025. This represents a decrease of 42.3% from the prior year.

EBITDA

$1.0B

YoY-69.7%

5Y CAGR-10.9%

10Y CAGR+4.0%

Microchip Technology Inc.'s EBITDA was $1.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization. This represents a decrease of 69.7% from the prior year.

Net Income

-$500K

YoY-100.0%

Microchip Technology Inc. reported -$500K in net income in fiscal year 2025. This represents a decrease of 100.0% from the prior year.

EPS (Diluted)

$-0.01

YoY-100.3%

Microchip Technology Inc. earned $-0.01 per diluted share (EPS) in fiscal year 2025. This represents a decrease of 100.3% from the prior year.

Cash & Balance Sheet

Free Cash Flow

$772.1M

YoY-70.4%

5Y CAGR-12.2%

10Y CAGR+0.8%

Microchip Technology Inc. generated $772.1M in free cash flow in fiscal year 2025, representing cash available after capex. This represents a decrease of 70.4% from the prior year.

Cash & Debt

$771.7M

YoY+141.4%

5Y CAGR+14.0%

10Y CAGR+2.4%

Microchip Technology Inc. held $771.7M in cash against $5.6B in long-term debt as of fiscal year 2025.

Dividends Per Share

$1.82

YoY+8.0%

5Y CAGR+19.9%

10Y CAGR+2.5%

Microchip Technology Inc. paid $1.82 per share in dividends in fiscal year 2025. This represents an increase of 8.0% from the prior year.

Shares Outstanding

539M

YoY+0.5%

5Y CAGR+17.1%

10Y CAGR+10.3%

Microchip Technology Inc. had 539M shares outstanding in fiscal year 2025. This represents an increase of 0.5% from the prior year.

Margins & Returns

Gross Margin

56.1%

YoY-9.4pp

5Y CAGR-5.4pp

10Y CAGR-1.2pp

Microchip Technology Inc.'s gross margin was 56.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs. This is down 9.4 percentage points from the prior year.

Operating Margin

6.7%

YoY-26.9pp

5Y CAGR-5.5pp

10Y CAGR-13.1pp

Microchip Technology Inc.'s operating margin was 6.7% in fiscal year 2025, reflecting core business profitability. This is down 26.9 percentage points from the prior year.

Net Margin

-0.0%

YoY-25.0pp

5Y CAGR-10.8pp

10Y CAGR-17.2pp

Microchip Technology Inc.'s net profit margin was -0.0% in fiscal year 2025, showing the share of revenue converted to profit. This is down 25.0 percentage points from the prior year.

Return on Equity

-0.0%

YoY-28.6pp

5Y CAGR-10.2pp

10Y CAGR-3331.6pp

Microchip Technology Inc.'s ROE was -0.0% in fiscal year 2025, measuring profit generated per dollar of shareholder equity. This is down 28.6 percentage points from the prior year.

Capital Allocation

R&D Spending

$983.8M

YoY-10.4%

5Y CAGR+2.3%

10Y CAGR+10.9%

Microchip Technology Inc. invested $983.8M in research and development in fiscal year 2025. This represents a decrease of 10.4% from the prior year.

Share Buybacks

$96.5M

YoY-90.2%

Microchip Technology Inc. spent $96.5M on share buybacks in fiscal year 2025, returning capital to shareholders by reducing shares outstanding. This represents a decrease of 90.2% from the prior year.

Capital Expenditures

$126.0M

YoY-55.8%

5Y CAGR+13.3%

10Y CAGR+34.2%

Microchip Technology Inc. invested $126.0M in capex in fiscal year 2025, funding long-term assets and infrastructure. This represents a decrease of 55.8% from the prior year.

MCHP Income Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Revenue	$4.4B-42.3%	$7.6B-9.5%	$8.4B+23.7%	$6.8B+25.4%	$5.4B+3.1%	$5.3B
Cost of Revenue	$1.9B-26.7%	$2.6B-3.7%	$2.7B+15.6%	$2.4B+15.1%	$2.1B+1.4%	$2.0B
Gross Profit	$2.5B-50.6%	$5.0B-12.3%	$5.7B+28.1%	$4.4B+31.7%	$3.4B+4.2%	$3.2B
R&D Expenses	$983.8M-10.4%	$1.1B-1.9%	$1.1B+13.1%	$989.1M+18.3%	$836.4M-4.7%	$877.8M
SG&A Expenses	$617.7M-15.9%	$734.2M-8.0%	$797.7M+11.0%	$718.9M+17.8%	$610.3M-9.8%	$676.6M
Operating Income	$296.3M-88.5%	$2.6B-17.5%	$3.1B+68.5%	$1.8B+85.3%	$998.1M+54.2%	$647.1M
Interest Expense	$259.2M+30.7%	$198.3M-2.7%	$203.9M-20.7%	$257.0M-28.0%	$356.9M-28.2%	$497.3M
Income Tax	$39.4M-91.4%	$459.0M-31.7%	$672.0M+241.1%	$197.0M+2089.9%	-$9.9M+97.6%	-$420.2M
Net Income	-$500K-100.0%	$1.9B-14.8%	$2.2B+74.1%	$1.3B+267.9%	$349.4M-38.8%	$570.6M
EPS (Diluted)	$-0.01-100.3%	$3.48-13.4%	$4.02+77.1%	$2.27+249.2%	$0.65-41.4%	$1.11

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Revenue	$1K-100.0%	$1.2B+4.0%	$1.1B+6.0%	$1.1B+10.8%	$970.5M-5.4%	$1.0B-11.8%	$1.2B-6.2%	$1.2B
Cost of Revenue	$479-100.0%	$479.1M-4.7%	$502.5M+0.7%	$498.8M+6.3%	$469.4M+1.0%	$464.6M-6.2%	$495.3M-1.8%	$504.4M
Gross Profit	$707-100.0%	$706.9M+10.8%	$637.9M+10.6%	$576.7M+15.1%	$501.1M-10.7%	$561.4M-16.0%	$668.5M-9.3%	$736.9M
R&D Expenses	$274-100.0%	$274.3M+4.6%	$262.3M+2.7%	$255.5M+0.1%	$255.2M+3.7%	$246.2M+2.3%	$240.7M-0.4%	$241.7M
SG&A Expenses	$169-100.0%	$168.5M-2.2%	$172.3M+8.2%	$159.3M+4.8%	$152.0M-3.9%	$158.2M+0.8%	$157.0M+4.3%	$150.5M
Operating Income	$152-100.0%	$151.7M+70.6%	$88.9M+176.9%	$32.1M+132.0%	-$100.3M-424.6%	$30.9M-78.9%	$146.6M-33.1%	$219.1M
Interest Expense	$52-100.0%	$55.9M-0.7%	$56.3M-1.9%	$57.4M-17.5%	$69.6M+1.3%	$68.7M+16.2%	$59.1M-4.4%	$61.8M
Income Tax	$31-100.0%	$30.9M+412.1%	-$9.9M-453.6%	$2.8M+120.4%	-$13.7M-282.7%	$7.5M-42.7%	$13.1M-59.7%	$32.5M
Net Income	$63-100.0%	$62.7M+50.4%	$41.7M+324.2%	-$18.6M+88.0%	-$154.6M-188.4%	-$53.6M-168.4%	$78.4M-39.4%	$129.3M
EPS (Diluted)	$0.060.0%	$0.06+100.0%	$0.03+133.3%	$-0.09	N/A	$-0.10-171.4%	$0.14-41.7%	$0.24

MCHP Balance Sheet

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Total Assets	$15.4B-3.1%	$15.9B-3.0%	$16.4B+1.1%	$16.2B-1.7%	$16.5B-5.4%	$17.4B
Current Assets	$3.0B-0.7%	$3.0B-1.8%	$3.1B+25.1%	$2.5B+14.3%	$2.1B-3.2%	$2.2B
Cash & Equivalents	$771.7M+141.4%	$319.7M+36.6%	$234.0M-26.3%	$317.4M+13.4%	$280.0M-30.2%	$401.0M
Inventory	$1.3B-1.7%	$1.3B-0.7%	$1.3B+55.1%	$854.4M+28.5%	$665.0M-3.0%	$685.7M
Accounts Receivable	$689.7M-39.7%	$1.1B-12.4%	$1.3B+21.7%	$1.1B+7.5%	$997.7M+6.8%	$934.0M
Goodwill	$6.7B+0.1%	$6.7B0.0%	$6.7B0.0%	$6.7B0.0%	$6.7B+0.1%	$6.7B
Total Liabilities	$8.3B-10.0%	$9.2B-6.5%	$9.9B-4.3%	$10.3B-7.5%	$11.1B-5.9%	$11.8B
Current Liabilities	$1.2B-54.2%	$2.5B-19.2%	$3.1B+122.9%	$1.4B-41.9%	$2.4B+47.2%	$1.6B
Long-Term Debt	$5.6B+12.6%	$5.0B-0.8%	$5.0B-34.4%	$7.7B+1.4%	$7.6B-14.6%	$8.9B
Total Equity	$7.1B+6.3%	$6.7B+2.2%	$6.5B+10.5%	$5.9B+10.4%	$5.3B-4.4%	$5.6B
Retained Earnings	$5.8B-14.5%	$6.8B+17.3%	$5.8B+38.1%	$4.2B+23.0%	$3.4B-1.1%	$3.4B

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Total Assets	$14K-100.0%	$14.3B-1.0%	$14.5B-3.4%	$15.0B-2.6%	$15.4B-1.6%	$15.6B+0.1%	$15.6B-1.4%	$15.8B
Current Assets	$2K-100.0%	$2.3B-2.5%	$2.4B-14.7%	$2.8B-7.9%	$3.0B-0.2%	$3.0B+3.1%	$2.9B-1.5%	$2.9B
Cash & Equivalents	$251-100.0%	$250.7M+5.9%	$236.8M-58.2%	$566.5M-26.6%	$771.7M+31.7%	$586.0M+104.8%	$286.1M-9.2%	$315.1M
Inventory	$1K-100.0%	$1.1B-3.4%	$1.1B-6.3%	$1.2B-9.6%	$1.3B-4.6%	$1.4B+1.2%	$1.3B+2.4%	$1.3B
Accounts Receivable	$731-100.0%	$731.2M-2.0%	$746.2M-2.5%	$765.5M+11.0%	$689.7M-19.5%	$857.2M-17.9%	$1.0B-4.7%	$1.1B
Goodwill	$7K-100.0%	$6.7B0.0%	$6.7B0.0%	$6.7B+0.2%	$6.7B0.0%	$6.7B0.0%	$6.7B0.0%	$6.7B
Total Liabilities	$8K-100.0%	$7.8B-0.1%	$7.8B-4.3%	$8.1B-2.1%	$8.3B-13.6%	$9.6B+2.7%	$9.3B-0.9%	$9.4B
Current Liabilities	$1K-100.0%	$1.1B+1.5%	$1.0B-12.3%	$1.2B+3.1%	$1.2B-13.2%	$1.3B-59.5%	$3.3B+116.1%	$1.5B
Long-Term Debt	$5K-100.0%	$5.4B-0.2%	$5.4B-1.5%	$5.5B-3.1%	$5.6B-16.6%	$6.7B+50.8%	$4.5B-27.4%	$6.2B
Total Equity	$7K-100.0%	$6.6B-2.0%	$6.7B-2.4%	$6.9B-3.1%	$7.1B+17.4%	$6.0B-3.9%	$6.3B-2.0%	$6.4B
Retained Earnings	$5K-100.0%	$5.0B-4.0%	$5.3B-4.2%	$5.5B-5.0%	$5.8B-6.5%	$6.2B-4.6%	$6.5B-2.5%	$6.6B

MCHP Cash Flow Statement

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Operating Cash Flow	$898.1M-69.0%	$2.9B-20.1%	$3.6B+27.4%	$2.8B+48.3%	$1.9B+24.1%	$1.5B
Capital Expenditures	$126.0M-55.8%	$285.1M-41.4%	$486.2M+31.4%	$370.1M+299.7%	$92.6M+37.0%	$67.6M
Free Cash Flow	$772.1M-70.4%	$2.6B-16.8%	$3.1B+26.8%	$2.5B+35.6%	$1.8B+23.6%	$1.5B
Investing Cash Flow	-$287.8M+26.6%	-$392.1M+34.6%	-$599.5M-25.5%	-$477.7M-175.6%	-$173.3M-30.1%	-$133.2M
Financing Cash Flow	-$158.3M+93.4%	-$2.4B+22.2%	-$3.1B-33.4%	-$2.3B-24.9%	-$1.9B-29.6%	-$1.4B
Dividends Paid	N/A	N/A	N/A	N/A	N/A	N/A
Share Buybacks	$96.5M-90.2%	$982.1M+3.8%	$945.8M+122.2%	$425.6M	$0	$0

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Operating Cash Flow	$705-100.0%	$341.4M+287.5%	$88.1M-68.0%	$275.6M+33.9%	$205.9M-24.2%	$271.5M+522.7%	$43.6M-88.4%	$377.1M
Capital Expenditures	$77-100.0%	$22.5M-38.4%	$36.5M+103.9%	$17.9M+26.1%	$14.2M-21.5%	$18.1M-13.0%	$20.8M-71.5%	$72.9M
Free Cash Flow	$628-100.0%	$318.9M+518.0%	$51.6M-80.0%	$257.7M+34.4%	$191.7M-24.3%	$253.4M+1011.4%	$22.8M-92.5%	$304.2M
Investing Cash Flow	$143+100.0%	-$44.5M+28.2%	-$62.0M-68.0%	-$36.9M+34.1%	-$56.0M-33.0%	-$42.1M+34.4%	-$64.2M+48.8%	-$125.5M
Financing Cash Flow	$1K+100.0%	-$283.0M+20.5%	-$355.8M+19.8%	-$443.9M-1339.9%	$35.8M-49.2%	$70.5M+939.3%	-$8.4M+96.7%	-$256.2M
Dividends Paid	$737-100.0%	$246.1M+0.1%	$245.8M+0.1%	$245.5M	N/A	$244.6M+0.4%	$243.7M+0.5%	$242.6M
Share Buybacks	$97	$0	$0	$0	$0-100.0%	$6.5M-62.4%	$17.3M-76.2%	$72.7M

MCHP Financial Ratios

Metric	FY25	FY24	FY23	FY22	FY21	FY20
Gross Margin	56.1%-9.4pp	65.4%-2.1pp	67.5%+2.3pp	65.2%+3.1pp	62.1%+0.7pp	61.5%
Operating Margin	6.7%-26.9pp	33.7%-3.3pp	36.9%+9.8pp	27.1%+8.8pp	18.4%+6.1pp	12.3%
Net Margin	-0.0%-25.0pp	25.0%-1.5pp	26.5%+7.7pp	18.9%+12.4pp	6.4%-4.4pp	10.8%
Return on Equity	-0.0%-28.6pp	28.6%-5.7pp	34.4%+12.5pp	21.8%+15.3pp	6.6%-3.7pp	10.2%
Return on Assets	0.0%-12.0pp	12.0%-1.7pp	13.7%+5.7pp	7.9%+5.8pp	2.1%-1.1pp	3.3%
Current Ratio	2.59+1.4	1.20+0.2	0.98-0.8	1.75+0.9	0.89-0.5	1.35
Debt-to-Equity	0.80+0.0	0.75-0.0	0.77-0.5	1.30-0.1	1.42-0.2	1.59
FCF Margin	17.5%-16.6pp	34.2%-3.0pp	37.1%+0.9pp	36.3%+2.7pp	33.5%+5.5pp	28.0%

Metric	Q4'26	Q3'26	Q2'26	Q1'26	Q4'25	Q3'25	Q2'25	Q1'25
Gross Margin	59.6%0.0pp	59.6%+3.7pp	55.9%+2.3pp	53.6%+2.0pp	51.6%-3.1pp	54.7%-2.7pp	57.4%-1.9pp	59.4%
Operating Margin	12.8%0.0pp	12.8%+5.0pp	7.8%+4.8pp	3.0%+13.3pp	-10.3%-13.3pp	3.0%-9.6pp	12.6%-5.0pp	17.6%
Net Margin	5.3%0.0pp	5.3%+1.6pp	3.7%+5.4pp	-1.7%+14.2pp	-15.9%-10.7pp	-5.2%-12.0pp	6.7%-3.7pp	10.4%
Return on Equity	1.0%0.0pp	1.0%+0.3pp	0.6%+0.9pp	-0.3%+1.9pp	-2.2%-1.3pp	-0.9%-2.1pp	1.3%-0.8pp	2.0%
Return on Assets	0.4%0.0pp	0.4%+0.2pp	0.3%+0.4pp	-0.1%+0.9pp	-1.0%-0.7pp	-0.3%-0.8pp	0.5%-0.3pp	0.8%
Current Ratio	2.160.0	2.16-0.1	2.25-0.1	2.31-0.3	2.59+0.3	2.25+1.4	0.88-1.1	1.94
Debt-to-Equity	0.820.0	0.82+0.0	0.800.0	0.800.0	0.80-0.3	1.12+0.4	0.71-0.2	0.96
FCF Margin	53.0%+26.1pp	26.9%+22.4pp	4.5%-19.4pp	24.0%+4.2pp	19.8%-4.9pp	24.7%+22.7pp	2.0%-22.6pp	24.5%

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Frequently Asked Questions

What is Microchip Technology Inc.'s annual revenue?

Microchip Technology Inc. (MCHP) reported $4.4B in total revenue for fiscal year 2025. This represents a -42.3% change compared to the previous fiscal year. Revenue measures the total income earned from the company's primary business operations before any expenses are deducted.

How fast is Microchip Technology Inc.'s revenue growing?

Microchip Technology Inc. (MCHP) revenue declined by 42.3% year-over-year, from $7.6B to $4.4B in fiscal year 2025.

Is Microchip Technology Inc. profitable?

No, Microchip Technology Inc. (MCHP) reported a net income of -$500K in fiscal year 2025, with a net profit margin of -0.0%.

What is Microchip Technology Inc.'s EBITDA?

Microchip Technology Inc. (MCHP) had EBITDA of $1.0B in fiscal year 2025, measuring earnings before interest, taxes, depreciation, and amortization.

How much debt does Microchip Technology Inc. have?

As of fiscal year 2025, Microchip Technology Inc. (MCHP) had $771.7M in cash and equivalents against $5.6B in long-term debt.

What is Microchip Technology Inc.'s gross margin?

Microchip Technology Inc. (MCHP) had a gross margin of 56.1% in fiscal year 2025, indicating the percentage of revenue retained after direct costs of goods sold.

What is Microchip Technology Inc.'s operating margin?

Microchip Technology Inc. (MCHP) had an operating margin of 6.7% in fiscal year 2025, reflecting the profitability of core business operations before interest and taxes.

What is Microchip Technology Inc.'s net profit margin?

Microchip Technology Inc. (MCHP) had a net profit margin of -0.0% in fiscal year 2025, representing the share of revenue converted into profit after all expenses.

Does Microchip Technology Inc. pay dividends?

Yes, Microchip Technology Inc. (MCHP) paid $1.82 per share in dividends during fiscal year 2025.

What is Microchip Technology Inc.'s return on equity (ROE)?

Microchip Technology Inc. (MCHP) has a return on equity of -0.0% for fiscal year 2025, measuring how efficiently the company generates profit from shareholder equity.

What is Microchip Technology Inc.'s free cash flow?

Microchip Technology Inc. (MCHP) generated $772.1M in free cash flow during fiscal year 2025. This represents a -70.4% change compared to the previous fiscal year. Free cash flow represents the cash a company generates after accounting for capital expenditures, and is widely used to assess financial flexibility and shareholder value.

What is Microchip Technology Inc.'s operating cash flow?

Microchip Technology Inc. (MCHP) generated $898.1M in operating cash flow during fiscal year 2025, representing cash generated from core business activities.

What are Microchip Technology Inc.'s total assets?

Microchip Technology Inc. (MCHP) had $15.4B in total assets as of fiscal year 2025, including both current and long-term assets.

What are Microchip Technology Inc.'s capital expenditures?

Microchip Technology Inc. (MCHP) invested $126.0M in capital expenditures during fiscal year 2025, funding long-term assets and infrastructure.

How much does Microchip Technology Inc. spend on research and development?

Microchip Technology Inc. (MCHP) invested $983.8M in research and development during fiscal year 2025.

Does Microchip Technology Inc. buy back shares?

Yes, Microchip Technology Inc. (MCHP) spent $96.5M on share buybacks during fiscal year 2025, returning capital to shareholders by reducing shares outstanding.

How many shares does Microchip Technology Inc. have outstanding?

Microchip Technology Inc. (MCHP) had 539M shares outstanding as of fiscal year 2025.

What is Microchip Technology Inc.'s current ratio?

Microchip Technology Inc. (MCHP) had a current ratio of 2.59 as of fiscal year 2025, which is generally considered healthy.

What is Microchip Technology Inc.'s debt-to-equity ratio?

Microchip Technology Inc. (MCHP) had a debt-to-equity ratio of 0.80 as of fiscal year 2025, measuring the company's financial leverage by comparing total debt to shareholder equity.

What is Microchip Technology Inc.'s return on assets (ROA)?

Microchip Technology Inc. (MCHP) had a return on assets of 0.0% for fiscal year 2025, measuring how efficiently the company uses its assets to generate profit.

What is Microchip Technology Inc.'s Altman Z-Score?

Microchip Technology Inc. (MCHP) has an Altman Z-Score of 3.37, placing it in the Safe Zone (low bankruptcy risk). The Z-Score combines five financial ratios—working capital, retained earnings, EBIT, market capitalization, and revenue relative to total assets—to predict the likelihood of bankruptcy. Scores above 2.99 indicate financial safety while scores below 1.81 suggest financial distress. Learn more in our complete guide to financial health indicators.

What is Microchip Technology Inc.'s Piotroski F-Score?

Microchip Technology Inc. (MCHP) has a Piotroski F-Score of 3 out of 9, indicating weak financial health. The F-Score evaluates nine binary signals across profitability (positive ROA, positive cash flow, improving ROA, earnings quality), leverage (decreasing debt, improving liquidity, no share dilution), and operating efficiency (improving gross margin, improving asset turnover). Scores of 7–9 indicate strong and improving fundamentals. Learn more in our complete guide to financial health indicators.

Are Microchip Technology Inc.'s earnings high quality?

Microchip Technology Inc. (MCHP) has an earnings quality ratio of -1796.20x, considered mixed quality. This ratio compares operating cash flow to net income. A ratio above 1.0x means the company generates more cash than its reported earnings, indicating sustainable, cash-backed profits. Ratios below 1.0x suggest earnings rely on accounting accruals rather than actual cash generation. Learn more in our complete guide to financial health indicators.

Can Microchip Technology Inc. cover its interest payments?

Microchip Technology Inc. (MCHP) has an interest coverage ratio of 1.1x, meaning it can struggle to cover its interest obligations. This ratio divides operating income by interest expense. Ratios above 5x indicate strong debt-servicing ability, while ratios below 2x suggest the company may face difficulty meeting interest payments if earnings decline. Learn more in our complete guide to financial health indicators.

How financially healthy is Microchip Technology Inc.?

Microchip Technology Inc. (MCHP) scores 42 out of 100 on our Financial Profile, indicating moderate overall financial health. This composite score evaluates six dimensions: profitability (operating margin), revenue growth, leverage (debt-to-equity), liquidity (current ratio), cash flow quality (free cash flow margin), and shareholder returns (return on equity). Each dimension is normalized against standard financial benchmarks. Learn more in our complete guide to financial health indicators.