Super Micro Computer Inc (SMCI)

Debt-to-assets ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Long-term debt	US$ in thousands	1,697,720	120,179	147,618	34,700	5,697
Total assets	US$ in thousands	9,826,090	3,674,730	3,205,080	2,241,960	1,918,650
Debt-to-assets ratio		0.17	0.03	0.05	0.02	0.00

June 30, 2024 calculation

Debt-to-assets ratio = Long-term debt ÷ Total assets
= $1,697,720K ÷ $9,826,090K
= 0.17

The debt-to-assets ratio of Super Micro Computer Inc has shown a steady increase over the years, starting at 0.00 in June 30, 2020 and gradually climbing to 0.17 by June 30, 2024. This indicates that the company's reliance on debt to finance its operations and growth has been growing. It's important to note that a higher debt-to-assets ratio can signal higher financial risk, as a larger portion of the company's assets are funded by debt. However, the ratio of 0.17 as of June 30, 2024 suggests that the company's debt level is still manageable relative to its total assets. Monitoring this ratio in conjunction with other financial metrics can provide a more comprehensive understanding of Super Micro Computer Inc's overall financial health and stability.