What is a cash flow waterfall?

A cash flow waterfall is a bar chart that walks from operating cash flow through capital expenditure to free cash flow, then shows how the remaining cash is allocated — acquisitions, buybacks, dividends, debt, and other financing — ending at the net change in cash. Each step is colour-coded: green bars add to the running total, red bars subtract.

How does Microchip Technology (MCHP) spend its free cash flow?

For TTM through Q1 2026, Microchip Technology generated $962.10M of operating cash flow and $871.00M of free cash flow — a free cash flow margin of 90.5% of operating cash flow. The waterfall breaks down how the remaining cash was allocated across investing and financing activities.

How much did Microchip Technology (MCHP) return via buybacks and dividends?

The waterfall shows buybacks (share repurchases) and dividends paid as separate steps in the financing section. Together these represent Microchip Technology's shareholder returns for TTM through Q1 2026. You can compare these against free cash flow to assess the capital-return payout ratio.

Microchip Technology (MCHP) Cash Flow Waterfall

Operating CF

$962.10M

Capex

−$91.10M

Free Cash Flow

$871.00M

FCF Margin

+90.5%

Cash flow waterfall for Microchip Technology (MCHP) — TTM through Q1 2026

Free cash flow: $871.00M

Cash flow breakdown for Microchip Technology (MCHP) — TTM through Q1 2026

Line item	Amount	Running total
Operating Cash Flow	$962.10M	$962.10M
Capital Expenditure	−$91.10M	$871.00M
Free Cash Flow	$871.00M	$871.00M
Other Investing	−$104.40M	$766.60M
Dividends Paid	−$1.09B	−$325.90M
Net Debt Change	−$127.90M	−$453.80M
Other Financing & FX	−$77.60M	−$531.40M
Net Cash Decrease	−$531.40M	−$531.40M

Operating Cash Flow$962.10M
Capital Expenditure−$91.10M
Free Cash Flow$871.00M
Other Investing−$104.40M
Dividends Paid−$1.09B
Net Debt Change−$127.90M
Other Financing & FX−$77.60M
Net Cash Decrease−$531.40M

Want to see what drove the FCF change?Free Cash Flow Bridge

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Microchip Technology (MCHP) Key Financials

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Cash flow waterfall for Microchip Technology (MCHP) — TTM through Q1 2026

Cash flow breakdown for Microchip Technology (MCHP) — TTM through Q1 2026

Frequently asked questions

+What is a cash flow waterfall?

+How does Microchip Technology (MCHP) spend its free cash flow?

+How much did Microchip Technology (MCHP) return via buybacks and dividends?

Data & methodology

+What is this view?

+How to read this waterfall

+How is the data calculated?

Microchip Technology (MCHP) Key Financials

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