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Microchip Technology Incorporated (MCHP) FCF Payout Ratio: 113.15%

Is Microchip Technology Incorporated’s FCF payout ratio high or low?

Microchip Technology Incorporated's FCF payout ratio of 113.15% is 94% above its 5-year average of 58.43%, near the high end of its 5-year range (20.38%–126.37%).

The FCF payout ratio for Microchip Technology Incorporated (MCHP) is 113.15%. It is below its 12-month average by 10.13% (125.90%).

MCHP FCF Payout Ratio Chart

MCHP FCF Payout Ratio
125.43%-0.74% 1Y
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MCHP Average FCF Payout Ratio Chart

MCHP Current vs Average FCF Payout Ratio Chart

MCHP FCF Payout Ratio Metrics

FCF PAYOUT RATIO

113.15%

FCF PAYOUT RATIO AVG TTM

125.90%

FCF PAYOUT RATIO AVG 3Y

77.23%

FCF PAYOUT RATIO AVG 5Y

58.43%

FCF PAYOUT RATIO AVG 10Y

45.73%

FCF PAYOUT RATIO AVG 15Y

50.50%

FCF PAYOUT RATIO AVG 20Y

54.55%

CURRENT VS TTM AVG

-10.13%

CURRENT VS 3Y AVG

+46.50%

CURRENT VS 5Y AVG

+93.64%

CURRENT VS 10Y AVG

+147.43%

CURRENT VS 15Y AVG

+124.05%

CURRENT VS 20Y AVG

+107.43%

Payout Ratio Comparison

FCF Payout Ratio

113.2%

Earnings Payout Ratio

674.1%

Dividend Yield

2.07%

FCF Yield

1.81%

Annual FCF Payout Ratio History

YearFree Cash FlowDividends PaidFCF Payout Ratio
2026$871.00M$1.09B125.4%
2025$772.10M$975.70M126.4%
2024$2.61B$911.50M35.0%
2023$3.13B$695.30M22.2%
2022$2.47B$503.80M20.4%
2021$1.82B$388.30M21.3%
2020$1.48B$350.10M23.7%
2019$1.45B$344.40M23.8%
2018$1.21B$337.50M27.8%
2017$984.14M$315.40M32.0%
2016$646.59M$291.09M45.0%
2015$571.71M$286.48M50.1%
2014$563.49M$281.20M49.9%
2013$395.36M$273.82M69.3%
2012$334.09M$266.18M79.7%
2011$458.21M$256.81M56.0%
2010$404.44M$249.56M61.7%
2009$206.28M$246.66M119.6%
2008$377.48M$251.96M66.7%
2007$369.73M$207.90M56.2%
2006$361.03M$120.11M33.3%
2005$289.50M$43.00M14.9%
2004$279.57M$23.32M8.3%
2003$179.80M$8.13M4.5%
2002$134.14M$00.0%
2001($186.78M)$0N/A (Loss)
2000$27.33M$00.0%
1999$63.00M$00.0%
1998($8.76M)$0N/A (Loss)
1997($1.43M)$0N/A (Loss)

Formula: FCF Payout Ratio = Dividends Paid / Free Cash Flow × 100

FCF payout and earnings payout:

  • FCF represents operating cash flow after capital expenditures
  • FCF payout compares dividends paid with free cash flow
  • FCF payout above 100% means dividends paid exceeded free cash flow for the period
  • Earnings payout compares dividends paid with net income

Reading the series: Use the chart and table to compare dividend payments with cash generation over time.

Microchip Technology Incorporated FCF Payout Ratio Formula & Definition

FCF Payout Ratio measures what percentage of free cash flow is paid out as dividends. Unlike earnings-based payout, it compares dividends with cash generated after capital expenditures.

Expanded definitions: Investopedia, Wikipedia, Corporate Finance Institute

Microchip Technology Incorporated FCF Payout Ratio FAQ

What is the FCF payout ratio for Microchip Technology Incorporated (MCHP)?
The FCF payout ratio for MCHP stock is 113.15%.
Is Microchip Technology Incorporated's FCF payout ratio high or low?
Microchip Technology Incorporated's FCF payout ratio of 113.15% is 94% above its 5-year average of 58.43%, near the high end of its 5-year range (20.38%–126.37%).
What is the TTM average FCF payout ratio for Microchip Technology Incorporated (MCHP)?
The TTM average FCF payout ratio for MCHP stock is 125.90%.
What is the 3Y average FCF payout ratio for Microchip Technology Incorporated (MCHP)?
The 3Y average FCF payout ratio for MCHP stock is 77.23%.
What is the 5Y average FCF payout ratio for Microchip Technology Incorporated (MCHP)?
The 5Y average FCF payout ratio for MCHP stock is 58.43%.
What is the 10Y average FCF payout ratio for Microchip Technology Incorporated (MCHP)?
The 10Y average FCF payout ratio for MCHP stock is 45.73%.
What is the 15Y average FCF payout ratio for Microchip Technology Incorporated (MCHP)?
The 15Y average FCF payout ratio for MCHP stock is 50.50%.
What is the 20Y average FCF payout ratio for Microchip Technology Incorporated (MCHP)?
The 20Y average FCF payout ratio for MCHP stock is 54.55%.

Microchip Technology Incorporated FCF Payout Ratio History

DATEFCF PAYOUT RATIO
2026-03-31125.43%
2025-03-31126.37%
2024-03-3134.96%
2023-03-3122.18%
2022-03-3120.38%
2021-03-3121.29%
2020-03-3123.72%
2019-03-3123.82%
2018-03-3127.83%
2017-03-3132.05%
2016-03-3145.02%
2015-03-3150.11%
2014-03-3149.90%
2013-03-3169.26%
2012-03-3179.67%
2011-03-3156.05%
2010-03-3161.70%
2009-03-31119.57%
2008-03-3166.75%
2007-03-3156.23%
2006-03-3133.27%
2005-03-3114.85%
2004-03-318.34%
2003-03-314.52%

About Microchip Technology Incorporated

Microchip Technology Incorporated creates, produces, and sells intelligent, interconnected, and secure embedded control solutions to customers throughout the Americas, Europe, and Asia. The company's core offerings include a range of microcontrollers, such as general-purpose 8-bit, 16-bit, and 32-bit models, as well as 32-bit embedded microprocessors. These specialized microcontrollers are designed for numerous applications across industries like automotive, industrial, computing, communications, lighting, power supplies, motor control, human-machine interfaces, security, and various wired and wireless connectivity needs. Beyond its processors, Microchip provides development tools that enable system designers to program its microcontroller and microprocessor units for specific tasks. Its product lineup also features Field-Programmable Gate Arrays (FPGAs) and a broad selection of analog, interface, mixed-signal, and timing components. This extensive category encompasses power management, linear, high-voltage, thermal management, discrete diodes and MOSFETs, radio frequency (RF), drivers, safety, security, USB, Ethernet, wireless, and other interface products. For compact device applications, the company supplies memory products such as serial EEPROM, serial and parallel flash, serial SRAM, and serial EERAM. A significant aspect of Microchip's business involves licensing its SuperFlash embedded flash and NVM technologies. These are provided to foundries, integrated device manufacturers, and design partners for use in manufacturing their own microcontrollers, gate arrays, RF, analog, and neuromorphic computing products that require integrated non-volatile memory. Moreover, Microchip delivers engineering services, along with wafer foundry, assembly, and test subcontracting manufacturing services. It also produces specialized timing systems, application-specific integrated circuits (ASICs), and aerospace products. Microchip Technology Incorporated was established in 1989 and is headquartered in Chandler, Arizona.

Chandler, AZ
22,300 employees
Technology / Semiconductors
Sector
Technology
Industry
Semiconductors
CEO
Stephen Sanghi