Super Micro Computer Inc (SMCI)
Financial leverage ratio
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Total assets | US$ in thousands | 3,674,730 | 3,205,080 | 2,241,960 | 1,918,650 | 1,682,590 |
| Total stockholders’ equity | US$ in thousands | 1,972,000 | 1,425,580 | 1,096,220 | 1,065,540 | 941,015 |
| Financial leverage ratio | 1.86 | 2.25 | 2.05 | 1.80 | 1.79 |
June 30, 2023 calculation
Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $3,674,730K ÷ $1,972,000K
= 1.86
The financial leverage ratio of Super Micro Computer Inc has exhibited fluctuating trends over the past five years. The ratio stood at 1.79 in 2019, increased to 1.80 in 2020, further rose to 2.05 in 2021, peaked at 2.25 in 2022, and then decreased to 1.86 in 2023. This trend indicates that the company's reliance on debt to fund its operations has varied. A higher financial leverage ratio suggests a greater dependency on debt financing, which can amplify both returns and risks for shareholders. Conversely, a lower ratio signifies a reduced reliance on debt, potentially indicating a more cautious approach to capital structure. It is important for stakeholders to closely monitor the company's financial leverage ratio to assess its risk management and capital structure strategies.
Peer comparison
Jun 30, 2023