Microchip Technology Stock Debt To Equity

MCHP Stock  USD 93.60  1.39  1.51%   
Microchip Technology fundamentals help investors to digest information that contributes to Microchip Technology's financial success or failures. It also enables traders to predict the movement of Microchip Stock. The fundamental analysis module provides a way to measure Microchip Technology's intrinsic value by examining its available economic and financial indicators, including the cash flow records, the balance sheet account changes, the income statement patterns, and various microeconomic indicators and financial ratios related to Microchip Technology stock.
Last ReportedProjected for Next Year
Debt To Equity 0.89  0.50 
As of 04/27/2024, Debt To Equity is likely to drop to 0.50.
  
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Microchip Technology Company Debt To Equity Analysis

Microchip Technology's Debt to Equity is calculated by dividing the Total Debt of a company by its Equity. If the debt exceeds equity of a company, then the creditors have more stakes in a firm than the stockholders. In other words, Debt to Equity ratio provides analysts with insights about composition of both equity and debt, and its influence on the valuation of the company.

D/E

 = 

Total Debt

Total Equity

More About Debt To Equity | All Equity Analysis

Current Microchip Technology Debt To Equity

    
  1.27 %  
Most of Microchip Technology's fundamental indicators, such as Debt To Equity, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Microchip Technology is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.

Microchip Debt To Equity Driver Correlations

Understanding the fundamental principles of building solid financial models for Microchip Technology is extremely important. It helps to project a fair market value of Microchip Stock properly, considering its historical fundamentals such as Debt To Equity. Since Microchip Technology's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Microchip Technology's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Microchip Technology's interrelated accounts and indicators.
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Microchip Debt To Equity Historical Pattern

Today, most investors in Microchip Technology Stock are looking for potential investment opportunities by analyzing not only static indicators but also various Microchip Technology's growth ratios. Consistent increases or drops in fundamental ratios usually indicate a possible pattern that can be successfully translated into profits. However, when comparing two companies, knowing each company's debt to equity growth rates may not be enough to decide which company is a better investment. That's why investors frequently use a static breakdown of Microchip Technology debt to equity as a starting point in their analysis.
   Microchip Technology Debt To Equity   
       Timeline  
High Debt to Equity ratio typically indicates that a firm has been borrowing aggressively to finance its growth and as a result may experience a burden of additional interest expense. This may reduce earnings or future growth. On the other hand a small D/E ratio may indicate that a company is not taking enough advantage from financial leverage. Debt to Equity ratio measures how the company is leveraging borrowing against the capital invested by the owners.
Competition

Microchip Total Stockholder Equity

Total Stockholder Equity

7.87 Billion

At this time, Microchip Technology's Total Stockholder Equity is relatively stable compared to the past year.
According to the company disclosure, Microchip Technology has a Debt To Equity of 1.27%. This is 97.85% lower than that of the Semiconductors & Semiconductor Equipment sector and 97.5% lower than that of the Information Technology industry. The debt to equity for all United States stocks is 97.39% higher than that of the company.

Microchip Debt To Equity Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Microchip Technology's direct or indirect competition against its Debt To Equity to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Microchip Technology could also be used in its relative valuation, which is a method of valuing Microchip Technology by comparing valuation metrics of similar companies.
Microchip Technology is currently under evaluation in debt to equity category among related companies.

Microchip Technology ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Microchip Technology's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Microchip Technology's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

Microchip Fundamentals

About Microchip Technology Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Microchip Technology's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Microchip Technology using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Microchip Technology based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.

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When determining whether Microchip Technology is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Microchip Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Microchip Technology Stock. Highlighted below are key reports to facilitate an investment decision about Microchip Technology Stock:
Check out Microchip Technology Piotroski F Score and Microchip Technology Altman Z Score analysis.
To learn how to invest in Microchip Stock, please use our How to Invest in Microchip Technology guide.
Note that the Microchip Technology information on this page should be used as a complementary analysis to other Microchip Technology's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Performance Analysis module to check effects of mean-variance optimization against your current asset allocation.

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When running Microchip Technology's price analysis, check to measure Microchip Technology's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Microchip Technology is operating at the current time. Most of Microchip Technology's value examination focuses on studying past and present price action to predict the probability of Microchip Technology's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Microchip Technology's price. Additionally, you may evaluate how the addition of Microchip Technology to your portfolios can decrease your overall portfolio volatility.
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Is Microchip Technology's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Microchip Technology. If investors know Microchip will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Microchip Technology listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
(0.26)
Dividend Share
1.59
Earnings Share
4.28
Revenue Per Share
15.7
Quarterly Revenue Growth
(0.19)
The market value of Microchip Technology is measured differently than its book value, which is the value of Microchip that is recorded on the company's balance sheet. Investors also form their own opinion of Microchip Technology's value that differs from its market value or its book value, called intrinsic value, which is Microchip Technology's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Microchip Technology's market value can be influenced by many factors that don't directly affect Microchip Technology's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Microchip Technology's value and its price as these two are different measures arrived at by different means. Investors typically determine if Microchip Technology is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Microchip Technology's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.