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Arphra AIPlain-English read on Microchip Technology Incorporated’s valuationRatios & metrics
Profitability, returns on capital, growth, and credit — all derived from the historical income statement, balance sheet, and cash flow rows in our data warehouse.
Valuation multiples
Price- and EV-based multiples plus shareholder yields. Snapshot at each fiscal year-end from key_metrics (FMP).
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| Headline | ||||||||
| Market cap | — | — | — | — | — | — | — | — |
| Enterprise value | — | — | — | — | — | — | — | — |
| Multiples | ||||||||
| P / E | — | — | — | — | — | — | — | — |
| P / B | — | — | — | — | — | — | — | — |
| EV / EBITDA | — | — | — | — | — | — | — | — |
| EV / Sales | — | — | — | — | — | — | — | — |
| EV / FCF | — | — | — | — | — | — | — | — |
| Yields | ||||||||
| Earnings yield | — | — | — | — | — | — | — | — |
| Free cash flow yield | — | — | — | — | — | — | — | — |
| Dividend yield | — | — | — | — | — | — | — | — |
Profitability
Margin structure across the last 5 fiscal years
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| Margins | ||||||||
| Gross margin | +62.13% | +65.23% | +67.52% | +65.44% | +56.07% | +63.55% | +61.76% | +64.45% |
| Operating margin | +18.35% | +27.12% | +36.93% | +33.68% | +6.73% | +25.87% | +25.57% | +26.23% |
| EBITDA margin | +33.70% | +42.10% | +48.62% | +45.01% | +23.64% | +39.73% | +38.66% | +38.86% |
| EBIT margin | +12.49% | +25.33% | +36.78% | +33.49% | +6.60% | +25.99% | +26.30% | +25.36% |
| Pre-tax margin | +6.24% | +21.73% | +34.48% | +30.99% | +0.88% | +22.08% | +22.33% | +21.53% |
| Net margin | +6.42% | +18.85% | +26.52% | +24.98% | -0.01% | +17.28% | +16.73% | +17.65% |
| Cost structure | ||||||||
| Cost of revenue / sales | +37.87% | +34.77% | +32.48% | +34.56% | +43.93% | +37.11% | +37.08% | +37.40% |
| R&D intensity | +15.38% | +14.50% | +13.25% | +14.37% | +22.35% | +17.09% | +16.93% | +16.83% |
| SG&A intensity | +11.22% | +10.54% | +9.45% | +9.62% | +14.03% | +11.16% | +11.15% | +10.99% |
| Effective tax rate | -2.92% | +13.29% | +23.10% | +19.40% | +101.29% | +20.71% | +20.48% | +21.89% |
Returns on capital
ROE / ROA / ROC / ROIC over the relevant capital base, plus the 3-step DuPont decomposition of ROE.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| Returns | ||||||||
| Return on equity (ROE) | +6.55% | +21.81% | +34.35% | +28.64% | -0.01% | +16.51% | +15.86% | +16.66% |
| Return on assets (ROA) | +2.12% | +7.94% | +13.67% | +12.01% | -0.00% | +7.06% | +6.58% | +6.91% |
| Return on capital (ROC) | +6.93% | +13.46% | +23.76% | +20.26% | +2.32% | +13.03% | +12.63% | +12.95% |
| Return on invested capital (ROIC) | +2.43% | +9.35% | +17.06% | +15.03% | +1.74% | +8.71% | +8.26% | +8.71% |
| Asset turnover | +33.00% | +42.11% | +51.55% | +48.10% | +28.63% | +40.88% | +39.33% | +39.13% |
| DuPont · ROE decomposition | ||||||||
| Net margin | +6.42% | +18.85% | +26.52% | +24.98% | -0.01% | +17.28% | +16.73% | +17.65% |
| Asset turnover (× revenue / assets) | +33.00% | +42.11% | +51.55% | +48.10% | +28.63% | +40.88% | +39.33% | +39.13% |
| Equity multiplier (× assets / equity) | +308.76% | +274.81% | +251.32% | +238.42% | +217.21% | +233.76% | +241.07% | +241.28% |
Activity & efficiency
Turnover ratios and days-outstanding — how efficiently the business converts assets and working capital into sales and cash.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| Turnover | ||||||||
| Asset turnover | 0.33 | 0.42 | 0.52 | 0.48 | 0.29 | 0.41 | 0.39 | 0.39 |
| Fixed-asset turnover | 6.36 | 7.05 | 7.16 | 6.39 | 3.72 | — | — | — |
| Inventory turnover | 3.10 | 2.78 | 2.07 | 2.01 | 1.49 | — | — | — |
| Receivables turnover | 5.45 | 6.36 | 6.46 | 6.68 | 6.38 | — | — | — |
| Payables turnover | 7.04 | 6.88 | 6.91 | 12.39 | 12.04 | — | — | — |
| Days outstanding | ||||||||
| Days sales outstanding (DSO) | 66.96 | 57.40 | 56.46 | 54.68 | 57.19 | — | — | — |
| Days inventory outstanding (DIO) | 117.85 | 131.51 | 176.44 | 182.04 | 244.16 | — | — | — |
| Days payables outstanding (DPO) | 51.82 | 53.06 | 52.86 | 29.46 | 30.31 | — | — | — |
| Cash conversion cycle | 132.99 | 135.85 | 180.04 | 207.25 | 271.04 | — | — | — |
Cash flow quality
How well reported earnings translate into operating and free cash flow, plus reinvestment intensity.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| Operating CF / Net income | 5.49 | 2.21 | 1.62 | 1.52 | -1796.20 | 1.97 | 2.03 | 1.91 |
| FCF / Net income | 5.22 | 1.92 | 1.40 | 1.37 | -1544.20 | 1.70 | 1.72 | 1.67 |
| FCF margin | +33.54% | +36.25% | +37.15% | +34.16% | +17.54% | +29.44% | +28.73% | +29.51% |
| OCF margin | +35.24% | +41.68% | +42.91% | +37.89% | +20.40% | +34.08% | +33.88% | +33.78% |
| CapEx / Revenue | +1.70% | +5.43% | +5.76% | +3.73% | +2.86% | +4.13% | +4.06% | +4.05% |
| CapEx / D&A | 0.08 | 0.32 | 0.49 | 0.32 | 0.17 | — | — | — |
| Stock-based comp / Revenue | +3.65% | +3.08% | +2.02% | +2.33% | +4.10% | — | — | — |
Per-share & shareholder yield
EPS, book value, sales, cash flow and dividends per share — plus payout / retention.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| EPS · diluted | 0.65 | 2.27 | 4.02 | 3.48 | -0.01 | 3.15 | 4.08 | 4.51 |
| EPS · basic | 0.67 | 2.33 | 4.07 | 3.52 | -0.01 | 3.21 | 4.12 | 4.52 |
| Book value / share | 9.86 | 10.42 | 11.69 | 12.15 | 13.17 | 11.93 | 14.06 | 15.19 |
| Tangible BV / share | -11.32 | -8.52 | -6.33 | -5.11 | -3.71 | 11.93 | 14.06 | 15.19 |
| Sales / share | 10.05 | 12.05 | 15.14 | 13.93 | 8.19 | 11.40 | 13.33 | 14.34 |
| Operating CF / share | 3.54 | 5.02 | 6.50 | 5.28 | 1.67 | 3.88 | 4.52 | 4.84 |
| Free cash flow / share | 3.37 | 4.37 | 5.62 | 4.76 | 1.44 | 3.36 | 3.83 | 4.23 |
| Dividends / share | 0.72 | 0.89 | 1.25 | 1.66 | 1.82 | 1.64 | 1.84 | 2.04 |
| Payout ratio | +111.13% | +39.19% | +31.07% | +47.80% | -195140.00% | +83.41% | +82.58% | +80.78% |
| Retention ratio | -11.13% | +60.81% | +68.93% | +52.20% | +195240.00% | +16.59% | +17.42% | +19.22% |
Growth
Year-over-year change for headline P&L lines, plus through-cycle CAGR
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E | 7y CAGR |
|---|---|---|---|---|---|---|---|---|---|
| Top-line | |||||||||
| Revenue · YoY | — | +25.42% | +23.72% | -9.53% | -42.35% | +40.18% | +15.43% | +8.60% | +5.16% |
| Gross profit · YoY | — | +31.69% | +28.05% | -12.32% | -50.60% | +58.88% | +12.19% | +13.33% | +5.71% |
| Profit | |||||||||
| Operating income · YoY | — | +85.31% | +68.47% | -17.49% | -88.48% | +438.76% | +14.10% | +11.41% | +10.67% |
| EBITDA · YoY | — | +56.69% | +42.87% | -16.24% | -69.72% | +135.63% | +12.32% | +9.16% | +7.32% |
| Net income · YoY | — | +267.92% | +74.07% | -14.78% | -100.03% | +213383.27% | +11.72% | +14.59% | +21.49% |
| Operating | |||||||||
| EBIT · YoY | — | +154.38% | +79.64% | -17.63% | -88.65% | +452.45% | +16.80% | +4.73% | +16.36% |
| R&D · YoY | — | +18.26% | +13.06% | -1.87% | -10.35% | +7.20% | +14.36% | +7.94% | +6.52% |
| Per-share | |||||||||
| EPS · diluted · YoY | — | +249.23% | +77.09% | -13.43% | -100.14% | +63059.60% | +29.70% | +10.37% | +31.87% |
| EPS · basic · YoY | — | +247.76% | +74.68% | -13.51% | -100.14% | +64274.65% | +28.25% | +9.72% | +31.33% |
Credit & leverage
Balance-sheet health + interest coverage + liquidity. Coverage ratios use period-end debt and trailing interest expense.
ActualEstimate
| In USD | FY 2021 | FY 2022 | FY 2023 | FY 2024 | FY 2025 | 2027E | 2028E | 2029E |
|---|---|---|---|---|---|---|---|---|
| Leverage | ||||||||
| Total debt | $9.07B | $7.85B | $6.6B | $6.03B | $5.67B | $5.79B | $6.91B | $7.48B |
| Net debt | $8.79B | $7.53B | $6.37B | $5.71B | $4.89B | $5.27B | $6.33B | $6.86B |
| Net debt / EBITDA | 4.80 | 2.62 | 1.55 | 1.66 | 4.70 | 2.15 | 2.30 | 2.28 |
| Debt / equity | 1.70 | 1.33 | 1.01 | 0.91 | 0.80 | 0.90 | 0.92 | 0.91 |
| Debt / assets | +55.04% | +48.46% | +40.32% | +38.00% | +36.85% | +38.36% | +38.16% | +37.83% |
| Equity / assets | +32.39% | +36.39% | +39.79% | +41.94% | +46.04% | +42.78% | +41.48% | +41.45% |
| Coverage | ||||||||
| EBITDA / interest expense | 5.13 | 11.17 | 20.12 | 17.33 | 4.14 | 11.31 | 10.76 | 10.90 |
| Operating income / interest | 2.80 | 7.20 | 15.28 | 12.97 | 1.18 | 7.37 | 7.12 | 7.36 |
| Interest expense | $356.9M | $257M | $203.9M | $198.3M | $251.4M | $216.68M | $255.9M | $275.7M |
| Liquidity | ||||||||
| Current ratio | 0.89 | 1.75 | 0.98 | 1.20 | 2.59 | — | — | — |
| Quick ratio | 0.53 | 0.99 | 0.49 | 0.58 | 1.27 | — | — | — |
| Cash ratio | 0.12 | 0.23 | 0.08 | 0.13 | 0.67 | — | — | — |
| Working capital | -$264.4M | $1.05B | -$49.3M | $493.6M | $1.84B | — | — | — |
| Working capital / revenue | -4.86% | +15.45% | -0.58% | +6.47% | +41.72% | — | — | — |
Methodology. ROE / ROA / ROC use period-end balance-sheet denominators (no average-of- period smoothing). ROIC = Operating Income × (1 − inferred effective tax rate) over invested capital, with the effective tax inferred from net-to-operating income when both are positive and a 25% default otherwise. Net debt / EBITDA, debt ratios, and interest-coverage ratios are calculated point-in-time at each fiscal year-end. TTM = trailing 4 quarters (income / cash flow summed, balance sheet = most-recent quarterly snapshot). Through-cycle CAGR in the Growth panel uses the geometric mean of first-to-last period growth across the window (positive values only).