Super Micro Computer Inc (SMCI)
Solvency ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.81 | 1.82 | 1.86 | 2.25 | 2.05 |
The solvency profile of Super Micro Computer Inc. demonstrates a distinct financial structure characterized by an absence of external debt during the analyzed period, as evidenced by the zero values across the debt-related ratios: debt-to-assets, debt-to-capital, and debt-to-equity ratios from June 30, 2021 through June 30, 2025. This indicates that the company has financed its operations predominantly through equity or internal sources, with no reliance on debt financing during these years.
The financial leverage ratio, however, provides insight into the company's reliance on financial leverage, which fluctuates over the period. Starting at 2.05 on June 30, 2021, it increased to 2.25 by June 30, 2022, suggesting a higher degree of leverage or use of assets relative to equity. Subsequently, the ratio declines to approximately 1.86 in 2023 and stabilizes around 1.81 in 2024 and 2025. This downward trend may reflect a reduction in leverage or an increase in equity base, indicating a move toward a more conservative capital structure or an increase in retained earnings or issued equity.
Overall, Super Micro Computer Inc.'s solvency ratios reveal a consistently debt-free position, minimizing financial risk associated with debt obligations. The variation in the financial leverage ratio signals adjustments in leverage levels, but the overall high ratio coupled with zero debt ratios underscores the company's reliance on internal financing and equity, thus maintaining a robust solvency position with minimal financial leverage risk.
Coverage ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Interest coverage | 63.74 | 65.40 | 72.55 | 47.20 | 49.88 |
The interest coverage ratio for Super Micro Computer Inc. demonstrates a generally strong capacity to meet its interest obligations over the specified period. As of June 30, 2021, the company's interest coverage ratio was 49.88, indicating it earned nearly 50 times its interest expense, thus reflecting a substantial cushion and a high level of financial stability in covering interest costs. By June 30, 2022, this ratio experienced a slight decline to 47.20, still maintaining a very strong coverage footing.
The ratio then experienced a notable increase by June 30, 2023, rising to 72.55, which suggests an improvement in the firm’s ability to generate earnings relative to its interest obligations, further strengthening its financial position concerning debt servicing. The upward trend continues with the projected values for June 30, 2024, at 65.40, and June 30, 2025, at 63.74, which remain significantly high and indicative of enduring strength in interest coverage. Although there is a modest decrease in the ratio from the peak in 2023 to the projections in 2024 and 2025, the ratios nonetheless reflect a consistently conservative approach to debt management and a strong capacity to meet interest payments over multiple years.
Overall, the trend in Super Micro Computer Inc.'s interest coverage ratios shows a consistently robust ability to service interest expenses, with a peak in 2023, followed by stable projected ratios, underscoring the company's solid financial health and prudent leverage.