Super Micro Computer Inc (SMCI)
Interest coverage
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 | ||
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Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,328,923 | 1,588,805 | 1,570,800 | 1,233,491 | 1,157,805 | 868,538 | 720,142 | 761,142 | 699,600 | 690,295 | 518,029 | 327,034 | 200,902 | 128,180 | 122,629 | 123,947 | 111,794 | 110,285 | 100,735 | 104,743 |
Interest expense (ttm) | US$ in thousands | 40,403 | 33,247 | 34,843 | 19,352 | 19,749 | 14,791 | 8,416 | 10,491 | 9,910 | 10,153 | 9,547 | 6,413 | 4,120 | 3,196 | 2,615 | 2,485 | 2,456 | 2,367 | 2,358 | 2,236 |
Interest coverage | 32.89 | 47.79 | 45.08 | 63.74 | 58.63 | 58.72 | 85.57 | 72.55 | 70.60 | 67.99 | 54.26 | 51.00 | 48.76 | 40.11 | 46.89 | 49.88 | 45.52 | 46.59 | 42.72 | 46.84 |
March 31, 2025 calculation
Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,328,923K ÷ $40,403K
= 32.89
The interest coverage ratio for Super Micro Computer Inc. demonstrates a consistently high level of ability to meet interest obligations throughout the analyzed period. Starting from June 30, 2020, the ratio stood at approximately 46.84, reflecting that the company's earnings before interest and taxes were nearly 47 times its interest expenses at that time. The ratio experienced minor fluctuations, maintaining a strong position with values generally above the 40 mark until the end of 2022. Notably, there was a progressive upward trend from September 30, 2021, onwards, reaching a peak of approximately 70.60 in March 2023, and maintaining elevated levels through mid-2024.
In the most recent data available, the interest coverage ratio remains robust, with a value of around 58.63 as of March 2024, indicating a substantial cushion to cover interest expenses. However, a decline is observable in the latest quarter ending September 30, 2024, where the ratio drops to approximately 45.08, and further decreases to around 32.89 by March 2025. Despite this decline, the ratio continues to remain well above 1, signifying that earnings before interest and taxes are still comfortably exceeding interest obligations.
Overall, Super Micro Computer Inc. has exhibited a history of strong interest coverage ratios, reflecting a solid capacity to service interest payments with earnings. The upward trend observed over the recent periods suggests improving financial health, although the recent decline warrants monitoring in the context of earnings fluctuations. The sustained high ratios imply the company has maintained a conservative approach toward debt and interest management over the analyzed period.
Peer comparison
Mar 31, 2025