Sanmina Corporation (SANM)

Solvency ratios

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
Debt-to-assets ratio 0.07 0.06 0.06 0.06 0.21 0.07 0.06 0.07 0.07 0.07 0.08 0.09 0.09 0.09 0.07 0.08 0.09 0.09 0.09 0.00
Debt-to-capital ratio 0.82 0.13 0.83 0.13 0.84 0.85 0.14 0.14 0.14 0.14 0.15 0.16 0.16 0.17 0.17 0.17 0.17 0.17 0.18 0.00
Debt-to-equity ratio 4.56 0.14 4.80 0.14 5.14 5.85 0.17 0.17 0.17 0.17 0.17 0.18 0.19 0.20 0.20 0.21 0.20 0.21 0.22 0.00
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

The solvency ratios of Sanmina Corporation indicate the company's ability to meet its long-term financial obligations.

The debt-to-assets ratio has shown a decreasing trend over the most recent quarters, indicating a lower proportion of the company's assets financed by debt. This suggests improved financial stability and less reliance on borrowed funds to support its operations.

On the other hand, the debt-to-capital and debt-to-equity ratios have fluctuated over the periods, with significant variations observed. These ratios highlight the extent to which the company relies on debt in its capital structure. The fluctuating trend may indicate changes in the company's financing strategies and capital allocation decisions.

The financial leverage ratio reflects the company's degree of financial leverage and risk. The ratio has been relatively high, suggesting a significant level of debt in relation to equity. A decreasing trend in this ratio indicates a reduction in financial risk and potential improvement in the company's capital structure efficiency.

In conclusion, the solvency ratios of Sanmina Corporation suggest a mixed picture in terms of its long-term financial health and leverage position. The decreasing debt-to-assets ratio and financial leverage ratio point towards better debt management, while the fluctuating debt-to-capital and debt-to-equity ratios indicate changes in the company's capital structure over the periods analyzed.

Coverage ratios

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
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

Sanmina Corporation's interest coverage ratio has shown a generally positive trend over the past five years, indicating the company's ability to cover its interest expenses with its earnings. The interest coverage ratio has consistently remained above 1, indicating that the company generates enough earnings to cover its interest obligations.

The ratio has fluctuated between a high of 16.91 in March 2022 and a low of 6.64 in March 2019. The upward trend in the ratio from 2019 to 2022 reflects an improvement in the company's ability to meet its interest payments. However, there was a slight decline in the interest coverage ratio in the most recent quarter, which may warrant further monitoring to ensure the sustainability of the company's ability to cover its interest expenses.

Overall, the interest coverage ratios suggest that Sanmina Corporation has maintained a strong financial position in terms of meeting its interest obligations, but continued vigilance is advised to ensure the company's ongoing ability to do so.