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
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

Company name
Symbol
Interest coverage
Super Micro Computer Inc
SMCI
32.89
Apple Inc
AAPL
122.97
Dell Technologies Inc
DELL
1.97
Omnicell Inc
OMCL
-0.28

See also:

Super Micro Computer Inc Interest Coverage (Quarterly Data)