Super Micro Computer Inc (SMCI)

Financial leverage ratio

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Total assets	US$ in thousands	9,826,090	3,674,730	3,205,080	2,241,960	1,918,650
Total stockholders’ equity	US$ in thousands	5,417,210	1,972,000	1,425,580	1,096,220	1,065,540
Financial leverage ratio		1.81	1.86	2.25	2.05	1.80

June 30, 2024 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $9,826,090K ÷ $5,417,210K
= 1.81

The financial leverage ratio of Super Micro Computer Inc has shown fluctuations over the past five years. As of June 30, 2020, the ratio stood at 1.80, indicating that the company had $1.80 in debt for every dollar of equity. Subsequently, the ratio increased to 2.05 by June 30, 2021, and further rose to 2.25 by June 30, 2022, suggesting a higher level of financial leverage and potentially increased financial risk.

However, by June 30, 2023, the financial leverage ratio decreased to 1.86, indicating a reduction in the level of debt relative to equity. This may signify a more conservative approach to capital structure or deleveraging efforts by the company. Finally, as of June 30, 2024, the ratio stood at 1.81, slightly lower than the previous year but still higher than the 2020 level.

Overall, the trend in Super Micro Computer Inc's financial leverage ratio demonstrates variability in the company's capital structure and leverage decisions over the past five years. It is crucial for stakeholders to monitor these changes to assess the company's ability to meet its financial obligations and manage financial risks effectively.