Super Micro Computer Inc (SMCI)

Financial leverage ratio

		Jun 30, 2025	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
Total assets	US$ in thousands	14,018,400	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
Total stockholders’ equity	US$ in thousands	6,301,690	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
Financial leverage ratio		2.22	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

June 30, 2025 calculation

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

The financial leverage ratio of Super Micro Computer Inc. exhibits a general upward trend from September 30, 2020, through June 30, 2021, increasing from 1.69 to 2.05. This indicates the company employed relatively higher levels of debt relative to equity during this period, suggesting an increased reliance on borrowed capital to finance its operations and expansion activities.

Subsequently, from September 30, 2021, through December 31, 2022, the leverage ratio stabilizes and begins to decline, reaching a low of approximately 1.69 at the end of 2022. This decrease suggests a reduction in leverage, potentially reflecting debt repayment, deleveraging strategies, or a shift toward stronger equity positioning.

Between March 2023 and June 2023, the ratio increases slightly from 1.81 to 1.86, indicating a modest rise in leverage, possibly due to new debt issuance or capital structure adjustments. The ratio continues to rise slightly through September 2023, reaching 1.89, before decreasing again to approximately 1.76 by the end of 2023.

In the period extending into 2024, the leverage ratio demonstrates some fluctuation: it remains relatively stable around 1.74 to 1.85, with a notable low of 1.56 in December 2024. This decline in late 2024 may infer a reduction in debt levels or improved equity position, thereby decreasing the overall financial leverage.

Finally, the ratio ascends again in the first half of 2025, reaching a peak of 2.22 by June 2025. This indicates a renewed increase in leverage, which could suggest new borrowing activity or capital restructuring measures in response to strategic financial needs.

Overall, the company's financial leverage ratio reflects periods of increasing leverage followed by phases of deleveraging, with fluctuations likely driven by strategic financing decisions, debt management practices, and capital structure adjustments across the analyzed timeframe.