Super Micro Computer Inc (SMCI)

Debt-to-equity ratio

		Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Long-term debt	US$ in thousands	99,322	105,389	120,179	133,235	142,273	—	147,618	144,423	139,032	45,134	34,700	27,867	20,577	11,980	5,697	—	—	—	0	—
Total stockholders’ equity	US$ in thousands	3,076,910	2,165,380	1,972,000	1,768,410	1,818,680	1,625,040	1,425,580	1,273,740	1,186,670	1,132,620	1,096,220	1,053,780	1,064,050	1,072,570	1,065,540	1,038,230	1,001,390	971,694	941,015	912,998
Debt-to-equity ratio		0.03	0.05	0.06	0.08	0.08	0.00	0.10	0.11	0.12	0.04	0.03	0.03	0.02	0.01	0.01	0.00	0.00	0.00	0.00	0.00

December 31, 2023 calculation

Debt-to-equity ratio = Long-term debt ÷ Total stockholders’ equity
= $99,322K ÷ $3,076,910K
= 0.03

The debt-to-equity ratio of Super Micro Computer Inc has shown fluctuations over the past eight quarters. In Q4 2022 and Q3 2022, the company had relatively high debt-to-equity ratios of 0.42 and 0.43 respectively, indicating a higher level of debt compared to equity in its capital structure during those periods. This could suggest potential financial risk and a reliance on debt financing.

However, in the subsequent quarters, the debt-to-equity ratio decreased significantly, with the ratios ranging from 0.07 to 0.15. These lower ratios signal a more favorable balance between debt and equity, indicating that the company may have reduced its debt levels or increased its equity investment.

Overall, the recent trend of decreasing debt-to-equity ratios suggests that Super Micro Computer Inc has been managing its debt levels effectively and potentially improving its financial health by reducing its reliance on debt financing. Investors and stakeholders may view this positively as it indicates a more stable and sustainable financial position for the company.