Super Micro Computer Inc (SMCI)

Financial leverage ratio

		Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Total assets	US$ in thousands	10,738,500	9,728,350	10,851,400	9,943,240	8,862,780	5,405,000	4,095,960	3,674,730	3,192,600	3,074,940	3,301,280	3,205,080	3,071,180	2,676,600	2,426,690	2,241,960	1,998,840	1,894,070	1,816,690	1,918,650
Total stockholders’ equity	US$ in thousands	6,379,320	6,238,310	5,876,750	5,469,500	5,093,990	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
Financial leverage ratio		1.68	1.56	1.85	1.82	1.74	1.76	1.89	1.86	1.81	1.69	2.03	2.25	2.41	2.26	2.14	2.05	1.90	1.78	1.69	1.80

March 31, 2025 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $10,738,500K ÷ $6,379,320K
= 1.68

The financial leverage ratio of Super Micro Computer Inc exhibits variations over the period from June 2020 through March 2025. Initially, at the end of June 2020, the ratio stood at 1.80, indicating a balanced mix of debt and equity financing. Throughout 2020, the ratio experienced a slight decline, reaching its lowest point of 1.69 at September 2020, before rising again to 1.78 by December 2020.

In the first half of 2021, the leverage ratio demonstrated a consistent upward trend, reaching 1.90 in March and subsequently increasing to 2.05 by June. The upward momentum continued into the latter half of 2021, with the ratio ascending to 2.14 in September and reaching 2.26 by December. This upward movement indicates an increasing reliance on leverage in this period.

The escalation persisted into 2022, with the ratio reaching 2.41 in March and peaking at 2.25 in June before declining to 2.03 in September and further down to 1.69 by December. This decline suggests a reduction in leverage, possibly due to deleveraging strategies or a shift towards equity financing.

During 2023, the leverage ratio showed signs of stabilization and marginal growth, recording 1.81 in March, 1.86 in June, and slightly rising to 1.89 in September. By the end of 2023, it decreased again to 1.76 in December. In the first quarter of 2024, the ratio was 1.74, followed by a slight increase to 1.82 in June and 1.85 in September, indicating a relatively stable leverage position.

In late 2024 and early 2025, the leverage ratio continued to fluctuate modestly, with 1.56 at December 2024, rising to 1.68 in March 2025. Overall, the data demonstrates periods of both increasing and decreasing leverage, with a general trend indicating moderate leverage levels around the 1.7 to 2.0 range in recent years.

The observed fluctuations reflect strategic adjustments in capital structure, balancing debt and equity to manage financial risk and optimize capital costs. The ratio generally remains within a moderate range, suggesting a stable degree of financial leverage that aligns with industry norms and the company's operational profile.