Microchip Technology Incorporated (MCHP) Financial Ratios
30 years of historical data (1996–2025) · Technology · Semiconductors
EV/EBITDA
↑
57.93
↑+194% vs avg
5yr avg: 19.73
30Y Low8.7·High37.8
P/FCF
↑
72.17
↑+235% vs avg
5yr avg: 21.53
30Y Low11.8·High43.4
P/B Ratio
↓
7.82
+17% vs avg
5yr avg: 6.66
30Y Low3.1·High9.2
ROE
↓
-0.0%
↑-100% vs avg
5yr avg: 18.9%
30Y Low-0%·High36%
Debt/EBITDA
↑
5.41
↑+73% vs avg
5yr avg: 3.12
30Y Low0.1·High6.5
Percentile shows where the current value sits in 30-year historical distribution. Sparklines show 5-year trend.
MCHP Valuation Multiples
Price-based multiples — how expensive the stock is relative to earnings, sales, book value, and cash flow
Microchip Technology Incorporated currently has a negative P/E ratio, indicating the company is operating at a loss on a trailing-twelve-month basis. On a free-cash-flow basis, the stock trades at 72.2x P/FCF, 235% above the 5-year average of 21.5x.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Market Cap | $55.7B | $26.0B | $49.2B | $46.7B | $42.5B | $42.0B | $17.4B | $20.7B | $22.7B | $17.3B | $10.5B |
| Enterprise Value | $60.6B | $30.9B | $54.9B | $53.1B | $50.1B | $50.8B | $26.6B | $30.6B | $24.9B | $19.4B | $10.8B |
| P/E Ratio → | -9999.00 | — | 25.78 | 20.84 | 33.10 | 119.40 | 30.54 | 58.42 | 89.57 | 102.47 | 32.13 |
| P/S Ratio | 12.66 | 5.91 | 6.44 | 5.53 | 6.23 | 7.72 | 3.29 | 3.88 | 5.71 | 5.08 | 4.82 |
| P/B Ratio | 7.82 | 3.67 | 7.38 | 7.17 | 7.21 | 7.87 | 3.11 | 3.92 | 6.93 | 5.30 | 4.87 |
| P/FCF | 72.17 | 33.69 | 18.85 | 14.89 | 17.20 | 23.03 | 11.77 | 14.34 | 18.75 | 17.60 | 16.21 |
| P/OCF | 62.04 | 28.96 | 16.99 | 12.89 | 14.96 | 21.92 | 11.25 | 12.38 | 16.02 | 16.35 | 14.07 |
P/E links to full P/E history page with 30-year chart
MCHP EV Ratios
Enterprise-value multiples — capital-structure-neutral measures of total business value
Microchip Technology Incorporated's enterprise value stands at 57.9x EBITDA, 194% above its 5-year average of 19.7x. The Technology sector median is 17.3x, placing the stock at a 235% premium on an enterprise-value basis.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| EV / Revenue | — | 7.02 | 7.19 | 6.29 | 7.34 | 9.34 | 5.04 | 5.72 | 6.26 | 5.68 | 4.99 |
| EV / EBITDA | 57.93 | 29.53 | 15.90 | 12.90 | 16.72 | 23.61 | 14.28 | 19.24 | 16.05 | 25.99 | 17.06 |
| EV / EBIT | 204.57 | 106.46 | 21.46 | 17.09 | 28.97 | 74.77 | 42.17 | 44.30 | 26.60 | 82.02 | 28.13 |
| EV / FCF | — | 40.03 | 21.04 | 16.93 | 20.24 | 27.85 | 18.01 | 21.17 | 20.54 | 19.68 | 16.76 |
MCHP Profitability
Margins and return-on-capital ratios measuring operating efficiency
Microchip Technology Incorporated earns an operating margin of 6.7%. Operating margins have compressed from 36.9% to 6.7% over the past 3 years, signaling potential cost pressures or competitive headwinds. A negative ROE of -0.0% indicates the company is currently destroying shareholder equity. ROIC of 1.8% represents below-average returns on invested capital.
Margins
Full margin charts and quarterly trend are on the Earnings History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross Margin | 56.1% | 56.1% | 65.4% | 67.5% | 65.2% | 62.1% | 61.5% | 54.8% | 60.8% | 51.6% | 55.5% |
| Operating Margin | 6.7% | 6.7% | 33.7% | 36.9% | 27.1% | 18.4% | 12.3% | 13.4% | 23.5% | 8.1% | 16.2% |
| Net Profit Margin | -0.0% | -0.0% | 25.0% | 26.5% | 18.8% | 6.4% | 10.8% | 6.7% | 6.4% | 4.8% | 14.9% |
Return on Capital
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| ROE | -0.0% | -0.0% | 29.0% | 36.1% | 22.9% | 6.4% | 10.5% | 8.3% | 7.8% | 6.1% | 15.4% |
| ROA | -0.0% | -0.0% | 11.8% | 13.7% | 7.9% | 2.1% | 3.2% | 2.7% | 3.2% | 2.5% | 6.3% |
| ROIC | 1.8% | 1.8% | 15.3% | 17.8% | 10.1% | 5.2% | 3.2% | 5.2% | 13.1% | 5.3% | 9.1% |
| ROCE | 2.1% | 2.1% | 19.3% | 22.2% | 12.8% | 6.7% | 4.1% | 6.4% | 14.2% | 4.5% | 7.4% |
MCHP Leverage & Debt
Solvency and debt-coverage ratios — lower is generally safer
Microchip Technology Incorporated carries a Debt/EBITDA ratio of 5.4x, which is highly leveraged (87% above the sector average of 2.9x). Net debt stands at $4.9B ($5.7B total debt minus $772M cash). Interest coverage of just 1.2x is concerning — the company has limited headroom to absorb earnings volatility before struggling with debt service.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt / Equity | 0.80 | 0.80 | 0.91 | 1.01 | 1.33 | 1.70 | 1.72 | 1.95 | 0.94 | 0.90 | 1.14 |
| Debt / EBITDA | 5.41 | 5.41 | 1.75 | 1.60 | 2.62 | 4.22 | 5.17 | 6.48 | 1.98 | 3.96 | 3.86 |
| Net Debt / Equity | — | 0.69 | 0.86 | 0.98 | 1.28 | 1.65 | 1.65 | 1.87 | 0.66 | 0.62 | 0.17 |
| Net Debt / EBITDA | 4.68 | 4.68 | 1.66 | 1.55 | 2.52 | 4.09 | 4.95 | 6.21 | 1.40 | 2.74 | 0.57 |
| Debt / FCF | — | 6.34 | 2.19 | 2.03 | 3.05 | 4.82 | 6.25 | 6.83 | 1.79 | 2.07 | 0.56 |
| Interest Coverage | 1.15 | 1.15 | 12.89 | 15.22 | 6.72 | 1.90 | 1.27 | 1.37 | 4.71 | 1.61 | 3.70 |
MCHP Liquidity & Efficiency
Short-term solvency ratios and asset-utilisation metrics
Microchip Technology Incorporated's current ratio of 2.59x is well above the 1.0 safety threshold, indicating strong short-term liquidity with ample room to cover current liabilities. The quick ratio of 1.47x is notably lower than the current ratio, indicating a significant portion of current assets is tied up in inventory. The current ratio has improved from 0.98x to 2.59x over the past 3 years.
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Current Ratio | 2.59 | 2.59 | 1.20 | 0.98 | 1.75 | 0.89 | 1.35 | 0.93 | 1.66 | 3.27 | 8.11 |
| Quick Ratio | 1.47 | 1.47 | 0.67 | 0.56 | 1.14 | 0.61 | 0.94 | 0.63 | 1.43 | 2.68 | 7.30 |
| Cash Ratio | 0.67 | 0.67 | 0.13 | 0.08 | 0.23 | 0.12 | 0.25 | 0.18 | 1.09 | 1.85 | 6.40 |
| Asset Turnover | — | 0.29 | 0.48 | 0.52 | 0.42 | 0.33 | 0.30 | 0.29 | 0.48 | 0.44 | 0.39 |
| Inventory Turnover | 1.49 | 1.49 | 2.01 | 2.07 | 2.78 | 3.10 | 2.96 | 3.40 | 3.28 | 3.96 | 3.15 |
| Days Sales Outstanding | — | 57.19 | 54.68 | 56.46 | 57.40 | 66.96 | 64.64 | 60.08 | 51.69 | 51.24 | 48.73 |
MCHP Shareholder Yields
Earnings, FCF, buyback, and dividend yields — total returns to shareholders
Microchip Technology Incorporated returns 1.9% to shareholders annually — split between a 1.8% dividend yield and 0.2% buyback yield.
Dividends
Full dividend history and growth charts are on the Dividend History page
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Dividend Yield | 1.8% | 3.8% | 1.9% | 1.5% | 1.2% | 0.9% | 2.0% | 1.7% | 1.5% | 1.8% | 2.8% |
| Payout Ratio | — | — | 47.8% | 31.1% | 39.2% | 111.1% | 61.4% | 96.8% | 132.1% | 191.6% | 89.8% |
Total Shareholder Return Metrics
| Metric | TTM | FY 2025 | FY 2024 | FY 2023 | FY 2022 | FY 2021 | FY 2020 | FY 2019 | FY 2018 | FY 2017 | FY 2016 |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings Yield | — | — | 3.9% | 4.8% | 3.0% | 0.8% | 3.3% | 1.7% | 1.1% | 1.0% | 3.1% |
| FCF Yield | 1.4% | 3.0% | 5.3% | 6.7% | 5.8% | 4.3% | 8.5% | 7.0% | 5.3% | 5.7% | 6.2% |
| Buyback Yield | 0.2% | 0.4% | 2.0% | 2.0% | 1.0% | 0.1% | 0.0% | 0.0% | 0.0% | 0.0% | 3.5% |
| Total Shareholder Yield | 1.9% | 4.1% | 3.9% | 3.5% | 2.2% | 1.0% | 2.0% | 1.7% | 1.5% | 1.8% | 6.3% |
| Shares Outstanding | — | $537M | $548M | $557M | $566M | $541M | $512M | $500M | $498M | $470M | $435M |
Peer Comparison
Compare MCHP with 10 similar companies in its peer group
| Company | Market Cap | P/E | EV/EBITDA | P/FCF | Gross Margin | Op Margin | ROE | ROIC | Debt/EBITDA |
|---|---|---|---|---|---|---|---|---|---|
 MCHPYou | $56B | -9999.0 | 57.9 | 72.2 | 56.1% | 6.7% | -0.0% | 1.8% | 5.4 |
 TXN | $264B | 53.1 | 34.4 | 101.2 | 57.0% | 34.1% | 30.1% | 15.8% | 1.9 |
 ADI | $203B | 91.2 | 42.4 | 47.4 | 61.5% | 26.6% | 6.6% | 5.4% | 1.8 |
 NXPI | $77B | 38.2 | 20.7 | 31.6 | 54.4% | 27.0% | 20.2% | 13.5% | 3.0 |
 ON | $42B | 364.7 | 29.9 | 29.3 | 32.3% | 12.5% | 1.5% | 6.1% | 2.4 |
 SWKS | $10B | 21.1 | 10.2 | 8.8 | 41.2% | 12.2% | 7.9% | 6.3% | 1.2 |
 LSCC | $17B | 5613.9 | 296.6 | 129.2 | 68.2% | 2.9% | 0.4% | 1.8% | 1.4 |
 ACLS | $6B | 45.0 | 39.7 | 51.8 | 44.9% | 14.2% | 11.7% | 9.6% | 0.3 |
 SLAB | $7B | -109.4 | — | 108.5 | 58.2% | -9.0% | -6.0% | -6.9% | — |
 MTSI | $23B | -424.4 | 122.7 | 120.5 | 54.9% | 13.4% | -4.4% | 6.0% | 2.8 |
 DIOD | $5B | 81.2 | 28.3 | 38.9 | 31.2% | 2.4% | 3.5% | 1.6% | 0.5 |
| Technology Median | — | 27.2 | 17.3 | 19.8 | 48.9% | -0.6% | 2.5% | 3.0% | 2.9 |
Peer selection based on competitive and market overlap. Compare multiple stocks →
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Start ComparisonMCHP — Frequently Asked Questions
Quick answers to the most common questions about buying MCHP stock.
What is Microchip Technology Incorporated's P/E ratio?
Microchip Technology Incorporated's current P/E ratio is -9999.0x. The historical average is 39.7x.
What is Microchip Technology Incorporated's EV/EBITDA?
Microchip Technology Incorporated's current EV/EBITDA is 57.9x. This enterprise value multiple compares the company's total value (equity + debt - cash) to its EBITDA. The historical average is 17.8x.
What is Microchip Technology Incorporated's ROE?
Microchip Technology Incorporated's return on equity (ROE) is -0.0%. The historical average is 16.1%.
Is MCHP stock overvalued?
Based on historical data, Microchip Technology Incorporated is trading at a P/E of -9999.0x. Compare with industry peers and growth rates for a complete picture.
What is Microchip Technology Incorporated's dividend yield?
Microchip Technology Incorporated's current dividend yield is 1.76%.
What are Microchip Technology Incorporated's profit margins?
Microchip Technology Incorporated has 56.1% gross margin and 6.7% operating margin.
How much debt does Microchip Technology Incorporated have?
Microchip Technology Incorporated's Debt/EBITDA ratio is 5.4x, indicating high leverage. A ratio above 4x may signal elevated financial risk.