Microchip Cash Ratio vs Free Cash Flow Analysis

MCHP Stock

USD 67.87 0.54 0.79%

Microchip Technology financial indicator trend analysis is infinitely more than just investigating Microchip Technology recent accounting drivers to predict future trends. We encourage investors to analyze account correlations over time for multiple indicators to determine whether Microchip Technology is a good investment. Please check the relationship between Microchip Technology Cash Ratio and its Free Cash Flow accounts. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microchip Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.

To learn how to invest in Microchip Stock, please use our How to Invest in Microchip Technology guide.

Cash Ratio vs Free Cash Flow

Cash Ratio vs Free Cash Flow Correlation Analysis

The overlapping area represents the amount of trend that can be explained by analyzing historical patterns of Microchip Technology Cash Ratio account and Free Cash Flow. At this time, the significance of the direction appears to have strong contrarian relationship.

The correlation between Microchip Technology's Cash Ratio and Free Cash Flow is -0.58. Overlapping area represents the amount of variation of Cash Ratio that can explain the historical movement of Free Cash Flow in the same time period over historical financial statements of Microchip Technology, assuming nothing else is changed. The correlation between historical values of Microchip Technology's Cash Ratio and Free Cash Flow is a relative statistical measure of the degree to which these accounts tend to move together. The correlation coefficient measures the extent to which Cash Ratio of Microchip Technology are associated (or correlated) with its Free Cash Flow. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when Free Cash Flow has no effect on the direction of Cash Ratio i.e., Microchip Technology's Cash Ratio and Free Cash Flow go up and down completely randomly.

Correlation Coefficient

-0.58

Relationship Direction	Negative
Relationship Strength	Very Weak

View All Relationships

Cash Ratio

Free Cash Flow

The amount of cash a company generates after accounting for cash outflows to support operations and maintain its capital assets.

Most indicators from Microchip Technology's fundamental ratios are interrelated and interconnected. However, analyzing fundamental ratios indicators one by one will only give a small insight into Microchip Technology current financial condition. On the other hand, looking into the entire matrix of fundamental ratios indicators, and analyzing their relationships over time can provide a more complete picture of the company financial strength now and in the future. Check out Correlation Analysis to better understand how to build diversified portfolios, which includes a position in Microchip Technology. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in rate.

To learn how to invest in Microchip Stock, please use our How to Invest in Microchip Technology guide.At this time, Microchip Technology's Selling General Administrative is relatively stable compared to the past year. As of 11/29/2024, Tax Provision is likely to grow to about 481.9 M, while Enterprise Value Over EBITDA is likely to drop 12.69.

	2021	2022	2023	2024 (projected)
Gross Profit	4.4B	5.7B	5.0B	5.2B
Total Revenue	6.8B	8.4B	7.6B	8.0B

Gross Profit Total Revenue

Microchip Technology fundamental ratios Correlations

	Total Assets	Short Long Term Debt Total	Other Current Liab	Total Current Liabilities	Total Stockholder Equity	Property Plant And Equipment Net	Net Debt	Retained Earnings	Accounts Payable	Cash	Non Current Assets Total	Non Currrent Assets Other	Cash And Short Term Investments	Net Receivables	Common Stock Shares Outstanding	Non Current Liabilities Total	Inventory	Other Current Assets	Other Stockholder Equity	Total Liab	Total Current Assets	Short Term Debt	Current Deferred Revenue	Common Stock Total Equity	Property Plant And Equipment Gross	Common Stock
Total Assets		0.94	0.93	0.89	0.96	0.87	0.96	0.82	0.72	-0.3	0.99	0.58	-0.6	0.96	0.8	0.97	0.84	-0.17	0.42	0.99	0.3	0.21	-0.15	0.67	0.61	0.67
Short Long Term Debt Total	0.94		0.85	0.75	0.82	0.7	0.96	0.63	0.63	-0.12	0.94	0.73	-0.51	0.82	0.71	0.98	0.65	-0.23	0.55	0.97	0.27	0.35	-0.26	0.46	0.43	0.46
Other Current Liab	0.93	0.85		0.78	0.92	0.84	0.89	0.84	0.57	-0.37	0.94	0.45	-0.66	0.9	0.68	0.9	0.82	-0.12	0.25	0.91	0.13	0.03	-0.19	0.75	0.81	0.75
Total Current Liabilities	0.89	0.75	0.78		0.9	0.87	0.8	0.83	0.63	-0.32	0.86	0.43	-0.53	0.93	0.71	0.76	0.89	-0.16	0.24	0.85	0.35	0.31	0.05	0.66	0.56	0.66
Total Stockholder Equity	0.96	0.82	0.92	0.9		0.95	0.86	0.93	0.71	-0.29	0.94	0.36	-0.57	0.99	0.82	0.87	0.94	-0.1	0.23	0.91	0.36	0.15	-0.02	0.82	0.74	0.82
Property Plant And Equipment Net	0.87	0.7	0.84	0.87	0.95		0.7	0.95	0.57	-0.15	0.82	0.2	-0.38	0.92	0.81	0.73	0.96	-0.06	0.07	0.8	0.47	0.24	0.17	0.85	0.78	0.85
Net Debt	0.96	0.96	0.89	0.8	0.86	0.7		0.66	0.69	-0.39	0.98	0.74	-0.67	0.86	0.69	0.99	0.68	-0.19	0.53	0.98	0.14	0.16	-0.32	0.49	0.47	0.49
Retained Earnings	0.82	0.63	0.84	0.83	0.93	0.95	0.66		0.55	-0.31	0.79	0.09	-0.57	0.91	0.66	0.67	0.98	-0.04	-0.15	0.74	0.26	0.13	-0.02	0.91	0.85	0.91
Accounts Payable	0.72	0.63	0.57	0.63	0.71	0.57	0.69	0.55		-0.36	0.71	0.33	-0.45	0.74	0.79	0.68	0.59	0.01	0.45	0.7	0.42	0.01	-0.21	0.56	0.29	0.56
Cash	-0.3	-0.12	-0.37	-0.32	-0.29	-0.15	-0.39	-0.31	-0.36		-0.36	-0.19	0.79	-0.34	-0.01	-0.26	-0.3	-0.04	0.03	-0.29	0.47	0.51	0.46	-0.24	-0.25	-0.24
Non Current Assets Total	0.99	0.94	0.94	0.86	0.94	0.82	0.98	0.79	0.71	-0.36		0.61	-0.67	0.94	0.74	0.97	0.81	-0.17	0.43	0.99	0.21	0.16	-0.23	0.63	0.59	0.63
Non Currrent Assets Other	0.58	0.73	0.45	0.43	0.36	0.2	0.74	0.09	0.33	-0.19	0.61		-0.32	0.35	0.33	0.7	0.11	-0.1	0.72	0.67	0.01	0.23	-0.34	-0.19	-0.14	-0.19
Cash And Short Term Investments	-0.6	-0.51	-0.66	-0.53	-0.57	-0.38	-0.67	-0.57	-0.45	0.79	-0.67	-0.32		-0.61	-0.14	-0.58	-0.55	0.08	-0.03	-0.6	0.47	0.34	0.56	-0.45	-0.47	-0.45
Net Receivables	0.96	0.82	0.9	0.93	0.99	0.92	0.86	0.91	0.74	-0.34	0.94	0.35	-0.61		0.8	0.86	0.94	-0.16	0.24	0.91	0.33	0.18	-0.06	0.82	0.71	0.82
Common Stock Shares Outstanding	0.8	0.71	0.68	0.71	0.82	0.81	0.69	0.66	0.79	-0.01	0.74	0.33	-0.14	0.8		0.73	0.69	-0.06	0.47	0.76	0.74	0.31	0.22	0.65	0.48	0.65
Non Current Liabilities Total	0.97	0.98	0.9	0.76	0.87	0.73	0.99	0.67	0.68	-0.26	0.97	0.7	-0.58	0.86	0.73		0.69	-0.2	0.55	0.99	0.23	0.2	-0.27	0.52	0.49	0.52
Inventory	0.84	0.65	0.82	0.89	0.94	0.96	0.68	0.98	0.59	-0.3	0.81	0.11	-0.55	0.94	0.69	0.69		-0.11	-0.06	0.77	0.32	0.17	0.06	0.89	0.8	0.89
Other Current Assets	-0.17	-0.23	-0.12	-0.16	-0.1	-0.06	-0.19	-0.04	0.01	-0.04	-0.17	-0.1	0.08	-0.16	-0.06	-0.2	-0.11		-0.14	-0.2	-0.04	-0.28	-0.14	-0.04	-0.06	-0.04
Other Stockholder Equity	0.42	0.55	0.25	0.24	0.23	0.07	0.53	-0.15	0.45	0.03	0.43	0.72	-0.03	0.24	0.47	0.55	-0.06	-0.14		0.5	0.25	0.06	-0.01	-0.18	-0.23	-0.18
Total Liab	0.99	0.97	0.91	0.85	0.91	0.8	0.98	0.74	0.7	-0.29	0.99	0.67	-0.6	0.91	0.76	0.99	0.77	-0.2	0.5		0.27	0.24	-0.21	0.57	0.53	0.57
Total Current Assets	0.3	0.27	0.13	0.35	0.36	0.47	0.14	0.26	0.42	0.47	0.21	0.01	0.47	0.33	0.74	0.23	0.32	-0.04	0.25	0.27		0.58	0.59	0.3	0.12	0.3
Short Term Debt	0.21	0.35	0.03	0.31	0.15	0.24	0.16	0.13	0.01	0.51	0.16	0.23	0.34	0.18	0.31	0.2	0.17	-0.28	0.06	0.24	0.58		0.19	0.0	-0.09	0.0
Current Deferred Revenue	-0.15	-0.26	-0.19	0.05	-0.02	0.17	-0.32	-0.02	-0.21	0.46	-0.23	-0.34	0.56	-0.06	0.22	-0.27	0.06	-0.14	-0.01	-0.21	0.59	0.19		0.06	0.06	0.06
Common Stock Total Equity	0.67	0.46	0.75	0.66	0.82	0.85	0.49	0.91	0.56	-0.24	0.63	-0.19	-0.45	0.82	0.65	0.52	0.89	-0.04	-0.18	0.57	0.3	0.0	0.06		0.91	1.0
Property Plant And Equipment Gross	0.61	0.43	0.81	0.56	0.74	0.78	0.47	0.85	0.29	-0.25	0.59	-0.14	-0.47	0.71	0.48	0.49	0.8	-0.06	-0.23	0.53	0.12	-0.09	0.06	0.91		0.91
Common Stock	0.67	0.46	0.75	0.66	0.82	0.85	0.49	0.91	0.56	-0.24	0.63	-0.19	-0.45	0.82	0.65	0.52	0.89	-0.04	-0.18	0.57	0.3	0.0	0.06	1.0	0.91

Click cells to compare fundamentals

Microchip Technology Account Relationship Matchups

Microchip Technology fundamental ratios Accounts

	2019	2020	2021	2022	2023	2024 (projected)
Total Assets	17.4B	16.5B	16.2B	16.4B	15.9B	16.7B
Short Long Term Debt Total	9.5B	8.9B	7.7B	6.4B	6.0B	6.3B
Other Current Liab	781.8M	711.1M	947.3M	464.9M	921.8M	967.9M
Total Current Liabilities	1.6B	2.4B	1.4B	3.1B	2.5B	2.6B
Total Stockholder Equity	5.6B	5.3B	5.9B	6.5B	6.7B	7.0B
Property Plant And Equipment Net	876.1M	854.7M	967.9M	1.2B	1.4B	1.4B
Net Debt	9.1B	8.6B	7.4B	6.2B	5.7B	6.0B
Retained Earnings	3.4B	3.4B	4.2B	5.8B	6.8B	7.1B
Accounts Payable	246.8M	292.4M	344.7M	396.9M	213M	123.0M
Cash	401M	280M	317.4M	234M	319.7M	413.5M
Non Current Assets Total	15.2B	14.3B	13.7B	13.3B	12.9B	13.5B
Non Currrent Assets Other	14.3B	13.5B	265.2M	457.2M	455.6M	432.8M
Cash And Short Term Investments	403M	282M	319.4M	234M	319.7M	303.7M
Net Receivables	934M	997.7M	1.1B	1.3B	1.1B	1.2B
Common Stock Shares Outstanding	512.4M	541.2M	565.9M	557.3M	548M	469.3M
Liabilities And Stockholders Equity	17.4B	16.5B	16.2B	16.4B	15.9B	16.7B
Non Current Liabilities Total	10.2B	8.7B	8.9B	6.7B	6.7B	7.0B
Inventory	685.7M	665M	854.4M	1.3B	1.3B	1.4B
Other Current Assets	194.5M	200.5M	206.2M	205.1M	233.6M	232.5M
Other Stockholder Equity	2.2B	2.0B	1.7B	753.1M	(98.7M)	(93.8M)
Total Liab	11.8B	11.1B	10.3B	9.9B	9.2B	9.7B
Total Current Assets	2.2B	2.1B	2.5B	3.1B	3.0B	1.6B
Short Term Debt	608.8M	1.4B	33.8M	1.4B	1.0B	541.1M
Property Plant And Equipment Gross	995.6M	1.0B	3.6B	1.2B	4.0B	4.2B
Accumulated Other Comprehensive Income	(21.6M)	(26.2M)	(20.6M)	(4.1M)	(3.5M)	(3.7M)
Other Liab	1.2B	1.2B	1.2B	1.6B	1.8B	1.9B
Other Assets	1.8B	13.5B	12.8B	1.9B	2.2B	1.5B
Treasury Stock	(500.6M)	(433.8M)	(796.3M)	(1.7B)	(1.5B)	(1.4B)
Property Plant Equipment	876.1M	854.7M	967.9M	1.2B	1.4B	757.0M
Good Will	6.7B	6.7B	6.7B	6.7B	6.7B	7.0B
Short Term Investments	1.3B	2.3M	2M	0.0	639.4M	429.7M
Intangible Assets	5.7B	4.8B	4.0B	3.4B	2.8B	1.7B
Long Term Debt	8.9B	7.6B	7.7B	5.0B	5.0B	3.7B
Net Tangible Assets	(6.8B)	(6.1B)	5.9B	(160M)	(144M)	(151.2M)
Retained Earnings Total Equity	3.4B	3.4B	4.2B	5.8B	6.6B	7.0B
Long Term Debt Total	8.9B	7.6B	7.7B	5.0B	5.8B	3.9B

Pair Trading with Microchip Technology

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Microchip Technology position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Microchip Technology will appreciate offsetting losses from the drop in the long position's value.

Moving together with Microchip Stock

0.85	MX	MagnaChip Semiconductor Tech Boost	Pair Corr
0.67	ON	ON Semiconductor	Pair Corr
0.85	ADI	Analog Devices	Pair Corr

Moving against Microchip Stock

0.81	CAN	Canaan Inc Aggressive Push	Pair Corr
0.71	RMBS	Rambus Inc	Pair Corr
0.63	SITM	Sitime	Pair Corr
0.5	INTC	Intel Fiscal Year End 23rd of January 2025	Pair Corr

The ability to find closely correlated positions to Microchip Technology could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Microchip Technology when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Microchip Technology - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Microchip Technology to buy it.

The correlation of Microchip Technology is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Microchip Technology moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Microchip Technology moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.

Correlation analysis and pair trading evaluation for Microchip Technology can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.

Pair Correlation Correlation Matching

Additional Tools for Microchip Stock Analysis

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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