Super Micro Computer Inc (SMCI)

Interest coverage

		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	Mar 31, 2020
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,555,031	1,552,006	1,221,865	1,161,759	871,071	712,995	761,225	702,355	699,024	542,182	344,460	213,142	137,247	119,909	121,278	95,282	91,900	84,936	89,498	106,566
Interest expense (ttm)	US$ in thousands	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	2,840
Interest coverage		46.77	44.54	63.14	58.83	58.89	84.72	72.56	70.87	68.85	56.79	53.71	51.73	42.94	45.85	48.80	38.80	38.83	36.02	40.03	37.52

December 31, 2024 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,555,031K ÷ $33,247K
= 46.77

Super Micro Computer Inc's interest coverage ratio has shown a generally positive trend over the period analyzed. The interest coverage ratio measures a company's ability to meet its interest payments on outstanding debt using its operating income.

From March 31, 2020, to December 31, 2022, the interest coverage ratio improved steadily, indicating that the company's operating income was comfortably covering its interest payments. This trend demonstrates the company's strong financial position and ability to manage its debt obligations.

However, from March 31, 2023, to December 31, 2024, there were fluctuations in the interest coverage ratio, with some periods showing a decline in the ratio. These fluctuations suggest potential changes in the company's operating income relative to its interest obligations. It is essential for investors and analysts to monitor these fluctuations closely to assess the company's ability to service its debt effectively.

Overall, Super Micro Computer Inc's interest coverage ratio reflects a generally positive trend, indicating its ability to meet its interest payments using its operating income.