Super Micro Computer Inc (SMCI)
Solvency ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.03 | 0.05 | 0.02 | 0.00 |
| Debt-to-capital ratio | 0.24 | 0.06 | 0.09 | 0.03 | 0.01 |
| Debt-to-equity ratio | 0.31 | 0.06 | 0.10 | 0.03 | 0.01 |
| Financial leverage ratio | 1.81 | 1.86 | 2.25 | 2.05 | 1.80 |
Super Micro Computer Inc's solvency ratios indicate the company's ability to meet its financial obligations over the long term.
1. Debt-to-assets ratio has increased from 0.00 in June 30, 2020 to 0.17 in June 30, 2024. This suggests that the company's proportion of debt to total assets has increased over the years.
2. Debt-to-capital ratio has also shown an increasing trend, rising from 0.01 in June 30, 2020 to 0.24 in June 30, 2024. This implies that a larger proportion of the company's capital structure is funded by debt.
3. Debt-to-equity ratio has followed a similar pattern, climbing from 0.01 in June 30, 2020 to 0.31 in June 30, 2024. This illustrates a significant increase in financial leverage and indicates higher reliance on debt financing.
4. The financial leverage ratio peaked in June 30, 2022 at 2.25 but decreased to 1.81 by June 30, 2024. Despite the slight decrease, the ratio remains relatively high, reflecting high levels of debt utilization in the company's capital structure.
Overall, Super Micro Computer Inc's solvency ratios have trended upwards, indicating an increased reliance on debt financing, which may potentially impact the company's financial stability in the long run. Monitoring these ratios closely is essential for assessing the company's ability to manage its debt levels effectively.
Coverage ratios
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | |
|---|---|---|---|---|---|
| Interest coverage | 62.57 | 72.55 | 53.71 | 48.81 | 40.01 |
Super Micro Computer Inc's interest coverage ratio has shown a positive trend over the past few years, indicating the company's ability to comfortably meet its interest obligations. The ratio has steadily increased from 40.01 in June 2020 to 62.57 in June 2024, reaching its peak at 72.55 in June 2023. This improvement suggests that the company's earnings are well above its interest expenses, providing a buffer for any potential economic downturns or fluctuations in interest rates. Overall, Super Micro Computer Inc's strong interest coverage ratio indicates a healthy financial position and the capacity to manage debt effectively.