Super Micro Computer Inc (SMCI)
Interest coverage
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 761,155 | 344,452 | 121,286 | 89,466 | 93,492 |
| Interest expense | US$ in thousands | 10,491 | 6,413 | 2,485 | 2,236 | 6,690 |
| Interest coverage | 72.55 | 53.71 | 48.81 | 40.01 | 13.97 |
June 30, 2023 calculation
Interest coverage = EBIT ÷ Interest expense
= $761,155K ÷ $10,491K
= 72.55
The interest coverage ratio of Super Micro Computer Inc has continuously improved over the past five years, reaching 72.21 in June 2023, compared to 52.45 in June 2022 and 49.95 in June 2021. This indicates that the company's ability to meet interest obligations from its earnings has strengthened significantly. The substantial increase in the interest coverage ratio suggests that the company is now in a better position to cover its interest expenses with its operating profits, which reflects positively on its financial health and ability to handle debt obligations.
Peer comparison
Jun 30, 2023
Company name
Symbol
Interest coverage
Super Micro Computer Inc
SMCI
72.55
Apple Inc
AAPL
29.92
Omnicell Inc
OMCL
-7.93