The business behind the dividend
| Measure | MCHP | Median | Formula |
|---|---|---|---|
| Return on equity | 3.6% | 10.6% | Net income ÷ shareholders’ equity |
| Return on capital employed | 4.1% | 10.0% | Operating income ÷ (equity + total debt) |
| Owner earnings | $808.50m | $120.90m | Net income + depreciation & amortisation − capital expenditure |
| Free cash flow | $851.30m | $155.08m | Operating cash flow − capital expenditure |
| Operating margin | 10.4% | 14.3% | Operating income ÷ revenue |
| Net margin | 4.9% | 10.1% | Net income ÷ revenue |
| Debt to equity | 0.85x | 0.73x | Total debt ÷ shareholders’ equity |
| Interest cover | 2.21x | 4.22x | Operating income ÷ interest expense |
| Current ratio | 2.09x | 1.55x | Current assets ÷ current liabilities |
| Long-term debt to working capital | 4.43x | 1.88x | Long-term debt ÷ (current assets − current liabilities) |
| Cash conversion | 4.18x | 1.66x | Operating cash flow ÷ net income |
| Accruals | -5.1% | -3.1% | (Net income − operating cash flow) ÷ total assets |
Ten years of it
The same measures, for every year the filings support. One year is a fact; a row is a business.
| Measure | 2026 | 2025 | 2024 | 2023 | 2022 | 2021 | 2020 | 2019 | 2018 | 2017 | Median |
|---|---|---|---|---|---|---|---|---|---|---|---|
| Return on equity | 3.6% | -0.0% | 28.6% | 34.4% | 21.8% | 6.5% | 10.2% | 6.7% | 7.8% | 5.0% | 6.7% |
| Return on capital employed | 4.1% | 2.3% | 20.3% | 24.1% | 13.6% | 7.0% | 4.3% | 4.6% | 14.7% | 4.4% | 4.6% |
| Operating margin | 10.4% | 6.7% | 33.7% | 36.9% | 27.1% | 18.4% | 12.3% | 13.4% | 23.5% | 8.1% | 13.4% |
| Net margin | 4.9% | -0.0% | 25.0% | 26.5% | 18.8% | 6.4% | 10.8% | 6.7% | 6.4% | 4.8% | 6.4% |
| Debt to equity | 0.85x | 0.80x | 0.90x | 0.99x | 1.30x | 1.67x | 1.70x | 1.95x | 0.94x | 0.90x | 0.94x |
| Current ratio | 2.09x | 2.59x | 1.20x | 0.98x | 1.75x | 0.89x | 1.35x | 0.93x | 1.66x | 3.27x | 1.35x |
| Cash conversion | 4.18x | — | 1.52x | 1.62x | 2.21x | 5.49x | 2.71x | 4.71x | 5.56x | 6.44x | 4.18x |
How it compares in technology
Among the 101 technology companies here measured on free cash flow, Microchip Technology pays out less than 8 of them. The median for that group is 27.8%, against this company’s 115.6%.
Closest on free cash flow
- JOYY (JOYY) 97.7%
- George Risk Industries (RSKIA) 104.0%
- Hewlett Packard Enterprise (HPE) 109.1%
- Mind Cti (MNDO) 113.7%
Same sector and same denominator, so the figures are comparable. All 115 in technology →