Smart Global Holdings Inc (SGH)
Solvency ratios
| Mar 1, 2024 | Dec 1, 2023 | Aug 25, 2023 | May 26, 2023 | Feb 24, 2023 | Nov 25, 2022 | Aug 26, 2022 | May 27, 2022 | Feb 25, 2022 | Nov 26, 2021 | Aug 27, 2021 | May 28, 2021 | Feb 26, 2021 | Nov 27, 2020 | May 29, 2020 | Feb 28, 2020 | Nov 29, 2019 | Aug 30, 2019 | May 31, 2019 | Mar 1, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.49 | 0.46 | 0.50 | 0.49 | 0.48 | 0.44 | 0.00 | 0.31 | 0.32 | 0.26 | 0.25 | 0.28 | 0.26 | 0.25 | 0.24 | 0.24 | 0.23 | 0.26 | 0.28 | 0.25 |
| Debt-to-capital ratio | 0.65 | 0.65 | 0.77 | 0.71 | 0.71 | 0.69 | 0.00 | 0.55 | 0.58 | 0.51 | 0.52 | 0.56 | 0.45 | 0.42 | 0.42 | 0.38 | 0.39 | 0.40 | 0.44 | 0.44 |
| Debt-to-equity ratio | 1.83 | 1.82 | 3.39 | 2.46 | 2.42 | 2.26 | 0.00 | 1.24 | 1.39 | 1.06 | 1.10 | 1.25 | 0.82 | 0.71 | 0.73 | 0.62 | 0.65 | 0.67 | 0.78 | 0.78 |
| Financial leverage ratio | 3.75 | 3.98 | 6.77 | 5.00 | 5.03 | 5.13 | 4.23 | 3.96 | 4.32 | 4.10 | 4.33 | 4.41 | 3.17 | 2.82 | 3.00 | 2.63 | 2.88 | 2.57 | 2.77 | 3.10 |
Smart Global Holdings Inc's solvency ratios provide insights into its ability to meet its long-term financial obligations and the extent of its leverage.
1. Debt-to-assets ratio:
The trend in the debt-to-assets ratio shows a slight fluctuation, ranging from 0.44 to 0.50 over the past few periods. Generally, the ratio has been around 0.45 to 0.50, indicating that approximately 45% to 50% of the company's assets are financed by debt. There was a significant anomaly with a 0.00 ratio in August 2022, potentially indicating a change in the composition of the company's assets or reporting irregularities.
2. Debt-to-capital ratio:
The debt-to-capital ratio fluctuates between 0.55 and 0.77 during the periods analyzed. The company's reliance on debt for its capital structure varies between 55% and 77%, with most periods falling between 60% and 70%. The 0.00 ratio in August 2022 is again noteworthy and requires further investigation.
3. Debt-to-equity ratio:
The debt-to-equity ratio displays a wider range of fluctuations compared to the previous ratios, varying between 0.71 and 3.39. This suggests that the company's financial structure has ranged from being moderately leveraged to highly leveraged over the periods analyzed. The company seems to maintain an average ratio of around 1. 1.83 in most cases, implying that for every dollar of equity, the company has $1.83 in debt.
4. Financial leverage ratio:
The financial leverage ratio indicates the extent to which the company is using debt financing. This ratio ranges from 2.57 to 6.77, with most periods showing a ratio between 3 and 5. The company's financial leverage has been fluctuating over time, indicating changes in the capital structure's composition and the level of risk associated with the company's debt levels.
Overall, Smart Global Holdings Inc's solvency ratios suggest a varying degree of leverage and debt utilization over the periods analyzed. The company's ability to manage its long-term financial obligations and the balance between debt and equity financing appear to have experienced fluctuations, highlighting the importance of monitoring these ratios for a comprehensive understanding of the company's solvency position.
Coverage ratios
| Mar 1, 2024 | Dec 1, 2023 | Aug 25, 2023 | May 26, 2023 | Feb 24, 2023 | Nov 25, 2022 | Aug 26, 2022 | May 27, 2022 | Feb 25, 2022 | Nov 26, 2021 | Aug 27, 2021 | May 28, 2021 | Feb 26, 2021 | Nov 27, 2020 | May 29, 2020 | Feb 28, 2020 | Nov 29, 2019 | Aug 30, 2019 | May 31, 2019 | Mar 1, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -0.18 | -0.14 | 0.26 | 1.09 | 2.24 | 2.72 | 3.17 | 0.25 | -0.93 | -0.36 | -0.89 | 2.14 | 2.63 | 2.13 | 2.18 | 1.80 | 2.44 | 4.30 | 5.48 | 7.64 |
Interest coverage ratio measures a company's ability to meet its interest obligations on outstanding debt. A higher ratio indicates a stronger ability to cover interest payments.
From the data provided for Smart Global Holdings Inc, the interest coverage ratio has fluctuated over the past few periods. The ratio has been negative in some quarters, indicating that the company did not generate enough operating income to cover its interest expenses. This is a concerning sign as it implies financial distress and the potential inability to meet debt obligations.
There were also instances where the interest coverage ratio was positive, with values ranging from 0.25 to 7.64. A ratio above 1 indicates that the company is generating sufficient operating income to cover its interest payments. The highest ratio of 7.64 suggests a strong ability to service debt obligations.
Overall, the fluctuating nature of Smart Global Holdings Inc's interest coverage ratio signifies variability in the company's ability to meet interest payments. It is important for stakeholders to closely monitor this metric to assess the company's financial health and ability to manage debt effectively.