Sanmina Corporation (SANM)

Financial leverage 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
Total assets	US$ in thousands	4,822,840	4,663,530	4,686,260	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
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
Financial leverage ratio		2.20	67.60	67.40	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

September 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $4,822,840K ÷ $2,196,620K
= 2.20

The financial leverage ratio of Sanmina Corporation has exhibited significant fluctuation over the past several quarters. The ratio has ranged from a low of 2.17 in March 2021 to a high of 85.85 in June 2022. The ratio indicates the extent to which the company relies on debt to finance its operations and investments.

The data shows a pattern of relatively stable financial leverage ratios between 2020 and mid-2021, with ratios generally fluctuating around the 2.20 to 2.32 range. However, there was a notable spike in the ratio to 85.85 in June 2022, suggesting a substantial increase in the company's debt relative to equity during that quarter.

Subsequently, the ratio decreased significantly to 2.27 in March 2023 and remained relatively stable around the 2.20 to 2.30 range until June 2024. The ratios of 67.40 and 67.60 in March and June 2024, respectively, indicate a return to relatively high levels of financial leverage similar to the levels seen in mid-2022.

Overall, the fluctuation in Sanmina Corporation's financial leverage ratio highlights the company's changing capital structure and the varying levels of debt and equity used to support its operations over the analyzed periods. Further analysis would be needed to understand the reasons behind these fluctuations and their implications for the company's financial health and risk profile.