Super Micro Computer Inc (SMCI)

Interest coverage

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Earnings before interest and tax (EBIT)	US$ in thousands	1,233,490	1,265,690	761,142	302,696	123,947
Interest expense	US$ in thousands	19,352	19,352	10,491	6,413	2,485
Interest coverage		63.74	65.40	72.55	47.20	49.88

June 30, 2025 calculation

Interest coverage = EBIT ÷ Interest expense
= $1,233,490K ÷ $19,352K
= 63.74

The interest coverage ratio for Super Micro Computer Inc demonstrates a generally strong capacity to meet its interest obligations over the observed period. As of June 30, 2021, the ratio stood at 49.88, indicating that the company earned nearly fifty times its interest expense, reflecting exceptional coverage. In the subsequent year, June 30, 2022, the ratio experienced a slight decline to 47.20, though it continued to maintain a very high level of interest coverage, suggesting sustained financial stability.

By June 30, 2023, the ratio increased significantly to 72.55, signifying an even more robust ability to service interest expenses. This marked rise could be attributed to improved earnings or a reduction in interest expense, contributing to stronger financial health. The trend persisted into the following years, with the ratio decreasing marginally to 65.40 on June 30, 2024, and further to 63.74 on June 30, 2025. Despite these minor declines, the ratios remain substantially high, indicating that the company continues to generate ample earnings relative to its interest obligations.

Overall, Super Micro Computer Inc's interest coverage ratios across these periods reflect a consistently high level of financial resilience, with an ability to comfortably meet interest expenses without material stress. The ratios suggest prudent financial management and an ability to sustain interest payments even amidst potential fluctuations in earnings.