A forensic read on Microchip Technology Inc built from its complete SEC filings — financial-health screens, earnings quality, red flags and a price-aware rating. Reproducible math, not opinion.
B · Sound & dependable
Forensic grade
Safe
Financial health
2.8
Distress distance
Clean
Earnings quality
2
Forensic signals
3.4%
ROE
7.1%
Revenue growth
This free snapshot doesn't read filing or proxy text, so the auditor-quality and governance checks that can lower a grade were not evaluated (auditor quality, say on pay, board independence, going concern). Those checks only ever lower a grade, so the full analysis can land below the grade above but never above it — treat it as the most favourable reading, not the settled one.
Microchip Technology Inc earns a B (Sound & dependable) forensic quality grade, and its balance-sheet distress test reads 2.8, placing it in the Safe zone. 2 forensic signals were flagged in its latest SEC filings, led by return on invested capital.
What the filings flag
3.1%
FY2026
Return on invested capital.Return on invested capital is 3.1% in the latest fiscal year, against 14.8% in FY2024, having run between 1.4% and 14.8% across FY2024–FY2026 with no direction held. After-tax operating profit was $2.1B in FY2024 and $412M in FY2026, with operating income at 33.7% of revenue in FY2024, 6.7% in FY2025 and 10.4% in FY2026. The capital base behind it went from $14.0B in FY2024 to $13.2B in FY2026 (-6%), while the revenue it carried went from $7.6B to $4.7B. FY2025's operating profit carried a $76M restructuring charge that alone took about 0.4 points off that year's return; FY2025 sits between the two ends of FY2024–FY2026, so the charge shapes the path between them without moving the change across it.
113% of FCF
FY2026
Shareholder returns.Returned $984M to shareholders (buybacks + dividends) in FY2026 — 113% of free cash flow. That is $113M (13%) more than free cash flow covered, and more than operating cash flow as well. It came out of the balance sheet's own liquid holdings, not new debt: cash fell $531M over FY2026, while total debt fell $134M. A payout past free cash flow draws the balance sheet down in every year it continues, which isn't sustainable indefinitely. Counting the $255M of stock-based comp paid out in shares on top of that, the combined claim on free cash flow is 142%.
Key fundamentals
Latest Revenue$4.71B
Revenue Growth YoY+7.1%
Revenue CAGR (2yr)-21.4%
Net Margin4.9%
Free Cash Flow$871.0M
Return on Equity3.4%
Debt / Equity0.85x
The forensic grade and screens above are free — no account needed. Want the AI investment read on top — the 0–100 rating, thesis, bull-vs-bear, red flags and the 12-month scenario, written from Microchip Technology Inc's actual 10-K/10-Q/8-K filings?