Sanmina Corporation (SANM)

Solvency ratios

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
Debt-to-assets ratio 0.06 0.06 0.06 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
Debt-to-capital ratio 0.12 0.81 0.81 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
Debt-to-equity ratio 0.14 4.34 4.37 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
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

The solvency ratios of Sanmina Corporation over the past years show a varying trend in terms of the company's ability to meet its long-term debt obligations. The debt-to-assets ratio has remained relatively stable around 0.06 to 0.09, indicating that the company has been able to maintain a low level of debt relative to its total assets.

However, the debt-to-capital and debt-to-equity ratios have exhibited significant fluctuations over the periods, ranging from 0.12 to 0.85 and 0.14 to 5.85, respectively. These ratios indicate that at times, Sanmina Corporation relied more heavily on debt to finance its operations and investments compared to its equity or capital. The high values of these ratios suggest a higher financial risk and dependency on debt financing.

Furthermore, the financial leverage ratio, which assesses the extent to which the company utilizes debt in its capital structure, has also shown substantial variability, ranging from 2.17 to 85.85. The high values of this ratio in certain periods indicate a significant amount of leverage employed by the company to support its operations and growth.

Overall, the analysis of solvency ratios for Sanmina Corporation reveals fluctuations in its debt levels and financial leverage over the years, indicating changing levels of financial risk and reliance on debt financing. It is essential for stakeholders to closely monitor these ratios to assess the company's long-term financial health and sustainability.

Coverage ratios

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
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

Interest coverage measures a company's ability to pay interest on its outstanding debt obligations. A higher interest coverage ratio indicates a greater ability to meet interest payments and suggests a lower risk of default.

Looking at the trend of Sanmina Corporation's interest coverage ratio over the past few quarters, we observe a generally positive trend. The interest coverage ratio has been consistently above 10, indicating a strong ability to cover interest expenses with operating profits.

The ratio peaked at 16.91 in the second quarter of 2022, reflecting a robust ability to service interest payments, and has shown resilience since then, maintaining relatively high levels above 10. This consistent performance suggests that the company generates sufficient operating income to comfortably cover its interest expenses.

The slight fluctuations in the ratio over the quarters may be attributed to changes in operating income or interest expenses. However, the overall trend indicates a solid financial position and a healthy interest coverage for Sanmina Corporation.

In conclusion, based on the interest coverage ratio analysis, Sanmina Corporation appears to have a strong ability to fulfill its interest obligations, which is a positive indicator of the company's financial health and stability.