Super Micro Computer Inc (SMCI)
Solvency ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.02 | 0.03 | 0.03 | 0.04 | 0.05 | 0.00 | 0.05 | 0.05 | 0.05 | 0.02 | 0.02 | 0.01 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.03 | 0.05 | 0.06 | 0.07 | 0.07 | 0.00 | 0.09 | 0.10 | 0.10 | 0.04 | 0.03 | 0.03 | 0.02 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.03 | 0.05 | 0.06 | 0.08 | 0.08 | 0.00 | 0.10 | 0.11 | 0.12 | 0.04 | 0.03 | 0.03 | 0.02 | 0.01 | 0.01 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.76 | 1.89 | 1.86 | 1.81 | 1.69 | 2.03 | 2.25 | 2.41 | 2.26 | 2.14 | 2.05 | 1.90 | 1.78 | 1.69 | 1.80 | 1.89 | 1.80 | 1.75 | 1.79 | 1.76 |
The solvency ratios of Super Micro Computer Inc indicate the company's ability to meet its long-term financial obligations and the extent of its reliance on debt financing.
1. Debt-to-assets ratio: This ratio measures the proportion of a company's assets financed by debt. Super Micro Computer Inc has maintained a relatively low debt-to-assets ratio over the quarters, indicating a conservative approach to leverage and a strong asset base to cushion against financial risk.
2. Debt-to-capital ratio: This ratio represents the percentage of a company's capital that is financed by debt. Super Micro Computer Inc has also shown a consistently low debt-to-capital ratio, indicating a balanced capital structure with limited reliance on debt funding.
3. Debt-to-equity ratio: This ratio indicates the extent of a company's capital that is financed by debt relative to shareholders' equity. Super Micro Computer Inc has maintained a low debt-to-equity ratio, suggesting that the company relies more on equity financing than debt to support its operations and growth.
4. Financial leverage ratio: This ratio measures the extent to which a company uses debt to finance its operations. Super Micro Computer Inc's financial leverage ratio has fluctuated over the quarters but generally remains at manageable levels, indicating a reasonable level of financial risk and leverage in the company's operations.
Overall, Super Micro Computer Inc's solvency ratios reflect a prudent approach to managing its capital structure and financial risk, with a balanced mix of debt and equity financing to support its long-term stability and growth.
Coverage ratios
| 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 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 28.82 | 20.92 | 13.97 | 16.77 |
Super Micro Computer Inc's interest coverage has shown a generally positive trend over the past eight quarters. The company's ability to cover its interest expenses has improved steadily, with the ratio increasing from 51.09 in Q3 2022 to 84.45 in Q1 2024. This indicates that the company's operating income has been more than sufficient to cover its interest payments.
The latest interest coverage ratio of 58.85 in Q2 2024, although slightly lower than the previous quarter, remains significantly above 1, suggesting that Super Micro Computer Inc continues to have a strong ability to meet its interest obligations. Overall, the consistent improvement in interest coverage reflects positively on the company's financial health and ability to manage its debt obligations effectively.