Sanmina Corporation (SANM)

Debt-to-equity 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-equity ratio		0.14	5.85	0.17	0.20	0.21

September 30, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $312,327K ÷ $2,168,950K
= 0.14

The debt-to-equity ratio of Sanmina Corp has shown a declining trend over the past five years, indicating a decreasing reliance on debt financing in relation to equity. As of September 30, 2023, the debt-to-equity ratio stood at 0.16, reflecting a favorable position in terms of leverage. This suggests that the company has a lower level of debt relative to its equity, which may signify a stronger financial position and lower financial risk. The consistent decline in the ratio from 0.23 in September 2019 to 0.16 in September 2023 indicates a prudent management of the capital structure and an increasing reliance on equity financing. This trend may be viewed positively by investors and creditors as it signifies a potential reduction in financial leverage and a corresponding decrease in the company's risk exposure.