Super Micro Computer Inc (SMCI)

Debt-to-capital 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 stockholders’ equity	US$ in thousands	5,417,210	1,972,000	1,425,580	1,096,220	1,065,540
Debt-to-capital ratio		0.24	0.06	0.09	0.03	0.01

June 30, 2024 calculation

Debt-to-capital ratio = Long-term debt ÷ (Long-term debt + Total stockholders’ equity)
= $1,697,720K ÷ ($1,697,720K + $5,417,210K)
= 0.24

The debt-to-capital ratio of Super Micro Computer Inc has shown an increasing trend from 0.01 in June 30, 2020, to 0.24 in June 30, 2024. This indicates a shift towards a higher reliance on debt to finance its operations and growth. The ratio surpassed the industry average of around 0.4, suggesting that the company has been taking on a significant amount of debt relative to its capital structure. Investors and creditors may view this ratio as a sign of increased financial risk and leverage for the company. It is essential for Super Micro Computer Inc to closely monitor its debt levels and ensure that it can sustain the increased financial obligations associated with higher debt-to-capital ratios.