Sanmina Corporation (SANM)

The solvency ratios of Sanmina Corp indicate the company's ability to meet its long-term financial obligations and the extent of its reliance on debt financing. The trend of these ratios over the past five years reflects the company's changing financial structure and risk exposure.

The debt-to-assets ratio has been consistently low, indicating that the company has maintained a relatively low level of debt in proportion to its total assets. This suggests a conservative approach to financing its operations and investments.

The debt-to-capital and debt-to-equity ratios also demonstrate a decreasing trend over the years, reflecting a reduction in the company's reliance on debt for its capital structure. This indicates an improved financial position and a lower risk of financial distress, as the company has been relying more on equity financing relative to debt.

The financial leverage ratio, which measures the proportion of the company's assets financed through debt, has shown a declining trend, indicating a decreasing reliance on debt for funding its assets.

Overall, the solvency ratios of Sanmina Corp suggest a prudent and stable financial position, with a decreasing reliance on debt financing over the years. This indicates an improved ability to meet its long-term obligations and a reduced risk of financial instability.

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Coverage ratios

The interest coverage ratio of Sanmina Corp has shown a consistent upward trend over the past five years, reflecting the company's improving ability to meet its interest obligations. The ratio has increased from 10.11 in 2019 to 20.34 in 2023, indicating a significant improvement in the company's ability to cover its interest expenses from its operating income. This positive trend suggests a strengthening financial position and reduced financial risk for Sanmina Corp.