Sanmina Corporation (SANM)

Debt-to-capital ratio

		Sep 30, 2023	Sep 30, 2022	Sep 30, 2021	Sep 30, 2020	Sep 30, 2019
Long-term debt	US$ in thousands	312,327	329,237	311,572	329,249	346,971
Total stockholders’ equity	US$ in thousands	2,168,950	56,325	1,878,630	1,623,370	1,642,570
Debt-to-capital ratio		0.13	0.85	0.14	0.17	0.17

September 30, 2023 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $312,327K ÷ ($312,327K + $2,168,950K)
= 0.13

The debt-to-capital ratio of Sanmina Corp has shown a declining trend over the past five years, decreasing from 0.19 in September 2019 to 0.13 in September 2023. This indicates that the company has been progressively reducing its reliance on debt as a source of financing compared to its overall capital structure. A lower debt-to-capital ratio signifies a healthier balance sheet and reduced financial risk. It suggests that the company is effectively managing its debt levels in relation to its total capital, potentially leading to improved financial stability and lower interest expense. However, it is important to consider the reasons behind this trend and assess the overall impact on the company's financial strategy and performance.