Sanmina Corporation (SANM)

Interest coverage

		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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	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	276,798	226,884	208,611
Interest expense (ttm)	US$ in thousands	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	30,763	31,752	31,437
Interest coverage		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	9.00	7.15	6.64

December 31, 2023 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $396,663K ÷ $36,021K
= 11.01

The interest coverage ratio for Sanmina Corporation has shown a generally positive trend over the past five quarters, indicating the company's ability to meet its interest obligations comfortably. The ratio has consistently remained above 1, with values ranging from 6.64 to 16.91, reflecting the company's strong ability to cover its interest expenses from its operating profits.

The trend suggests that Sanmina Corporation's profitability and operational efficiency have been stable and improving over time, as higher interest coverage ratios indicate that the company is generating more than enough earnings to cover its interest expenses. This is a positive indicator for creditors and potential investors as it signifies that the company is financially stable and capable of servicing its debt obligations without facing significant financial distress.

Overall, the consistent improvement in the interest coverage ratio for Sanmina Corporation highlights its strong financial performance and prudent financial management practices.