Super Micro Computer Inc (SMCI)

Interest coverage

		Jun 30, 2025	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
Earnings before interest and tax (EBIT) (ttm)	US$ in thousands	1,271,489	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
Interest expense (ttm)	US$ in thousands	59,573	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
Interest coverage		21.34	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

June 30, 2025 calculation

Interest coverage = EBIT (ttm) ÷ Interest expense (ttm)
= $1,271,489K ÷ $59,573K
= 21.34

The interest coverage ratio for Super Micro Computer Inc demonstrates a consistent and robust capacity to meet its interest obligations over the analyzed period. The ratio has persisted within a high range, starting at 42.72 times on September 30, 2020, and exhibiting notable stability and gradual growth through subsequent periods. It peaked at 85.57 times on September 30, 2023, indicating a significant buffer over interest expenses, reflecting strong operating earnings relative to interest obligations.

Throughout the observed timeframe, the ratio has experienced fluctuations but remained substantially above critical thresholds that might signal financial distress. The ratio's decline from its peak to 58.72 times as of December 31, 2023, and further decreases in 2024 and 2025, still indicate a substantial coverage margin. Even at its lowest point in the forecasted data for June 30, 2025, at 21.34, the ratio suggests a healthy ability to cover interest expenses, although the margin is narrower than in previous periods.

Overall, the data reveals that Super Micro Computer Inc maintains a very comfortable interest coverage ratio, underpinning its strong operational earnings capacity relative to debt service requirements and indicating a solid financial position with low risk of interest payment difficulties in both historical and projected periods.