Sanmina Corporation (SANM)

Financial leverage ratio

		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	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	4,616,980	4,873,970	4,957,890	5,029,460	1,579,280	4,835,530	4,743,670	4,649,910	4,502,010	4,206,720	4,002,590	3,765,740	3,779,730	3,772,660	4,474,700	4,360,180	3,829,740	3,905,510	4,019,960	4,206,690
Total stockholders’ equity	US$ in thousands	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	1,642,570	1,627,470	1,580,720
Financial leverage ratio		68.36	2.25	75.25	2.27	24.96	85.85	2.68	2.58	2.43	2.24	2.18	2.17	2.25	2.32	2.71	2.70	2.28	2.38	2.47	2.66

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,616,980K ÷ $67,539K
= 68.36

The financial leverage ratio of Sanmina Corporation has varied significantly over the past five quarters, ranging from a low of 2.17 to a high of 85.85. This ratio measures the extent to which the company relies on debt to finance its operations and growth. A higher financial leverage ratio indicates a higher level of debt relative to equity, suggesting higher financial risk and potentially higher returns.

The ratio of 85.85 in September 2022 stands out as an anomaly, indicating an exceptionally high level of debt compared to equity at that point in time. This could raise concerns about the company's ability to meet its debt obligations and may indicate financial distress.

Conversely, the ratios of around 2.25 to 2.70 in recent quarters suggest a more balanced mix of debt and equity in the company's capital structure. While this indicates a more conservative level of leverage, it may also imply limited access to the benefits of financial leverage such as tax advantages or increased return on equity.

Overall, the fluctuations in Sanmina Corporation's financial leverage ratio over the past quarters highlight the company's changing approach to capital structure and the potential impact on financial risk and performance.