Sanmina Corporation (SANM)

Debt-to-capital ratio

		Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019
Long-term debt	US$ in thousands	299,823	299,665	303,884	308,105	312,327	316,552	320,779	325,007	329,237	298,345	302,751	307,160	311,572	315,987	320,405	324,825	329,249	333,675	338,105	342,537
Total stockholders’ equity	US$ in thousands	2,196,620	68,988	69,533	67,539	2,168,950	65,882	2,217,990	63,275	56,325	1,768,560	1,805,040	1,852,760	1,878,630	1,839,120	1,735,110	1,677,950	1,623,370	1,653,480	1,617,750	1,679,380
Debt-to-capital ratio		0.12	0.81	0.81	0.82	0.13	0.83	0.13	0.84	0.85	0.14	0.14	0.14	0.14	0.15	0.16	0.16	0.17	0.17	0.17	0.17

September 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $299,823K ÷ ($299,823K + $2,196,620K)
= 0.12

The debt-to-capital ratio of Sanmina Corporation has been fluctuating over the past few quarters. As of September 30, 2024, the ratio stands at 0.12, indicating that the company has a lower level of debt relative to its total capital. This suggests that Sanmina Corporation relies more on equity financing rather than debt to fund its operations and investments.

However, it is important to note that the ratio has shown some inconsistency in recent quarters, with significant variations between periods. For example, the ratio was notably higher at 0.81 in June and March 2024, indicating a higher proportion of debt in the company's capital structure during those periods.

Overall, a lower debt-to-capital ratio can signify a more conservative financial strategy and lower financial risk for the company. It is essential for investors and stakeholders to monitor these fluctuations in the ratio to assess the company's leverage and financial stability over time.