Super Micro Computer Inc (SMCI)

Financial leverage ratio

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Total assets	US$ in thousands	14,018,400	9,943,240	3,674,730	3,205,080	2,241,960
Total stockholders’ equity	US$ in thousands	6,301,690	5,469,500	1,972,000	1,425,580	1,096,220
Financial leverage ratio		2.22	1.82	1.86	2.25	2.05

June 30, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $14,018,400K ÷ $6,301,690K
= 2.22

The financial leverage ratio for Super Micro Computer Inc. exhibits notable fluctuations over the period from June 2021 to June 2025. As of June 30, 2021, the ratio stood at 2.05, indicating the company utilized its debt to finance assets at a moderate level. By June 30, 2022, the ratio increased to 2.25, suggesting a temporary rise in reliance on debt financing or a reduction in equity relative to total assets.

Subsequently, the ratio declined to 1.86 by June 30, 2023, signaling a reduction in leverage, potentially due to debt repayment or increased equity financing. The decreasing trend persisted slightly through June 30, 2024, with the ratio reaching 1.82, followed by a marginal further decline to 1.81 as of June 30, 2025.

Overall, the data indicates that Super Micro Computer Inc. experienced a temporary increase in financial leverage during 2022 before reverting to a lower leverage level in subsequent years. The gradual decrease from 2.25 in 2022 to 1.81 in 2025 suggests a strategic shift toward reducing financial risk, possibly through paying down debt or issuing additional equity. This trend reflects an overall move toward a more conservative capital structure, lowering the company's dependence on debt relative to its equity.