Super Micro Computer Inc (SMCI)

Financial leverage ratio

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Total assets	US$ in thousands	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	1,960,240	1,807,040	1,701,270	1,682,590	1,607,250
Total stockholders’ equity	US$ in thousands	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	1,038,230	1,001,390	971,694	941,015	912,998
Financial leverage ratio		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	1.89	1.80	1.75	1.79	1.76

December 31, 2023 calculation

Financial leverage ratio = Total assets ÷ Total stockholders’ equity
= $5,405,000K ÷ $3,076,910K
= 1.76

The financial leverage ratio of Super Micro Computer Inc has fluctuated over the past eight quarters. The ratio indicates the extent to which the company is utilizing debt to finance its operations. A higher ratio suggests a higher level of debt relative to equity, indicating higher financial risk.

Super Micro Computer Inc's financial leverage ratio ranged from 1.69 to 2.41 during the periods presented. The ratio peaked in Q3 2022 at 2.41, signifying a higher reliance on debt financing at that time. Subsequently, the ratio decreased to 1.69 in Q2 2023, indicating a lower level of debt relative to equity.

In Q2 2024, the financial leverage ratio stood at 1.76, showing a moderate level of leverage compared to the historical data. The decreasing trend from the previous quarter suggests that the company may be managing its debt levels more effectively.

Overall, the fluctuating trend of the financial leverage ratio for Super Micro Computer Inc indicates varying levels of reliance on debt financing over the analyzed periods. Investors and stakeholders should closely monitor these fluctuations to assess the company's financial risk and stability.