Sanmina Corporation (SANM)

The solvency ratios of Sanmina Corporation indicate the company's ability to meet its long-term financial obligations and highlight its leverage position relative to its assets, capital, and equity.

The debt-to-assets ratio has been consistently low over the past five years, indicating that Sanmina Corporation relies minimally on debt financing to support its assets.

The debt-to-capital ratio shows a fluctuating trend, with a significant spike in 2022 but a subsequent decrease in the following years. This ratio suggests the proportion of the company's capital structure that is funded by debt, with lower ratios generally considered more favorable.

The debt-to-equity ratio also experienced a notable increase in 2022, indicating a higher reliance on debt relative to equity during that period. However, this ratio has since decreased in the subsequent years, reflecting a more balanced mix of debt and equity financing.

The financial leverage ratio, which measures the company's total assets relative to its equity, displays a similar pattern to the debt-to-equity ratio. Sanmina Corporation's leverage position peaked in 2022 but has since declined, suggesting a reduction in financial risk and a stronger equity base in recent years.

Overall, the solvency ratios of Sanmina Corporation demonstrate a prudent approach to managing debt and leverage, with improvements in recent years signaling a potentially more stable financial position.

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Coverage ratios

The interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT). A higher interest coverage ratio indicates that the company is more capable of servicing its debt obligations.

Based on the data provided, we can observe that Sanmina Corporation's interest coverage ratio has been relatively stable over the past five years. The trend shows that the company has consistently been able to cover its interest expenses by a significant margin, with ratios ranging from 7.94 to 15.41.

In particular, it is notable that in the most recent fiscal year ended on September 30, 2024, Sanmina Corporation's interest coverage ratio was 11.50, indicating that the company generated earnings before interest and taxes that were approximately 11.50 times higher than its interest expenses. This suggests that the company has a healthy buffer to meet its interest obligations.

Overall, Sanmina Corporation's interest coverage ratios demonstrate a strong financial position and ability to manage its debt effectively.