Sanmina Corporation (SANM)

Interest coverage

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
Earnings before interest and tax (EBIT) (ttm) US$ in thousands 338,464 340,266 361,459 396,663 427,939 421,123 402,400 362,984 328,415 311,337 329,060 305,510 301,192 319,307 284,814 249,795 229,411 204,976 203,429 263,864
Interest expense (ttm) US$ in thousands 29,183 32,393 34,953 36,021 36,290 35,144 30,693 26,277 22,473 20,256 19,464 19,474 19,551 23,183 26,820 27,980 28,903 26,798 25,937 28,369
Interest coverage 11.60 10.50 10.34 11.01 11.79 11.98 13.11 13.81 14.61 15.37 16.91 15.69 15.41 13.77 10.62 8.93 7.94 7.65 7.84 9.30

September 30, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $338,464K ÷ $29,183K
= 11.60

The interest coverage ratio for Sanmina Corporation has displayed a generally increasing trend over the past two years, indicating a consistent ability to meet its interest obligations from its operating profits. The ratio has shown a strong performance, with values consistently above 10, reflecting a robust ability to cover its interest expenses by operating earnings. The latest reported interest coverage ratio of 11.60 for September 30, 2024, suggests the company is comfortably managing its interest payments.
Overall, the trend in Sanmina Corporation's interest coverage ratio demonstrates a healthy financial position and efficient management of debt obligations, which is a positive signal for investors and creditors.