Microchip Technology Incorporated cash flow to debt ratio of 17.38% indicates that the company cannot generate enough cash to cover its debt over time. This level indicates weak financial health.

Microchip Technology Incorporated's free cash flow has increased 12.81% from $772.10M last year to $871.00M, signaling increasing performance

Microchip Technology Incorporated's debt to equity ratio is 0.84, which means that the company's assets are unhealthy financed, signaling financial risk.

Microchip Technology Incorporated's debt has increased relative to shareholder equity from 0.80 last year to 0.84 today, signaling weakened financials

Microchip Technology Incorporated has a net debt to EBITDA ratio of 3.78x, which exceeds the 3.00x threshold, indicating high leverage and potential financial risk

Microchip Technology Incorporated's interest coverage ratio of 3.74 indicates that earnings with good margin can cover interest payments on company debt

Microchip Technology Incorporated's profit margin has increased (-77.54K%) in the last year from -0.01% to 8.80%, signaling increasing performance

Microchip Technology Incorporated's short-term assets of $2.38B exceed its short-term liabilities of $1.14B

Microchip Technology Incorporated's return on assets of 3.13% is lower than the 5.00% threshold, indicating inefficient asset utilization

Microchip Technology Incorporated's return on equity of 6.90%, is lower than 15.00%, indicating bad performance

Microchip Technology Incorporated's operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Microchip Technology Incorporated had positive net income in 4 out of 5 years, indicating stable and consistent earnings

Microchip Technology Incorporated has positive free cash flow, indicating the company generates cash after capital expenditures

Microchip Technology Incorporated has a free cash flow yield of 1.97%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Microchip Technology Incorporated's yearly earnings has increased -40.54K% since last year from $-500.00K to $202.20M, signaling increasing performance

Microchip Technology Incorporated's yearly revenue has increased 7.08% since last year from $4.40B to $4.71B, signaling increasing performance

ROIC 4.99% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Microchip Technology Incorporated's 3-year revenue CAGR of -17.65% is negative, indicating declining revenue over the past 3 years

Microchip Technology Incorporated had revenue growth in 3 out of 5 years, indicating consistent revenue performance

Microchip Technology Incorporated had positive ROE in 4 out of 5 years, indicating consistent and reliable returns on equity

Microchip Technology Incorporated is overvalued relative to its fair value price of 0.69 based on Discounted Cash Flow model

Microchip Technology Incorporated has an earnings yield of 1.02%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Microchip Technology Incorporated is overvalued relative to its fair value price of 4.42 based on EBITDA multiple model

Microchip Technology Incorporated has an EV/EBITDA ratio of 35.33x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Microchip Technology Incorporated is overvalued relative to its fair value price of 15.68 based on Earnings Fair Value model

Microchip Technology Incorporated's earnings growth over the measurement period is negative; the PEG ratio is not meaningful and the check fails.

Microchip Technology Incorporated has a price-to-book ratio of 6.84x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Microchip Technology Incorporated has a price-to-sales ratio of 8.62x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue