Super Micro Computer Inc (SMCI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 2.22 | 1.68 | 1.56 | 1.85 | 1.82 | 1.74 | 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 |
The solvency ratios of Super Micro Computer Inc. over the analyzed period reflect a consistent pattern of financial independence from debt, as evidenced by the zero values reported for the debt-to-assets, debt-to-capital, and debt-to-equity ratios throughout all observed dates. This indicates that the company has maintained a leverage structure entirely devoid of debt financing, relying solely on equity for its capital structure.
The data further demonstrates that the company's financial leverage ratio has fluctuated within a relatively narrow range, starting at 1.69 in September 2020 and ending at 2.22 in June 2025. The initial increase from 1.69 to a peak of 2.41 in March 2022 suggests a period of increased leverage; however, subsequent adjustments brought the ratio down to approximately 1.56 by the end of 2024, before showing signs of mild resurgence. The oscillations in the leverage ratio, despite consistent zero debt ratios, imply variations in other elements of the capital structure — possibly changes in equity or non-debt liabilities — affecting the overall leverage measure.
Overall, based on the provided data, Super Micro Computer Inc. exhibits an absence of debt, indicating a highly conservative approach to financial risk management. The company’s leverage ratios suggest a reliance primarily on equity financing, which can contribute to a stable solvency profile and reduce vulnerability to interest rate fluctuations or debt servicing challenges. Nonetheless, the fluctuations in the financial leverage ratio, without an accompanying increase in debt ratios, warrant a closer examination of non-debt liabilities or capital changes to fully interpret the underlying drivers of leverage adjustments.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
The interest coverage ratios of Super Micro Computer Inc. over the specified periods demonstrate a generally robust capacity to meet its interest obligations. As of September 30, 2020, the ratio stood at 42.72, indicating the company's earnings before interest and taxes (EBIT) were more than forty times the interest expense, reflecting strong financial health at that time. This ratio increased markedly over subsequent periods, reaching a peak of 72.55 on June 30, 2023, which signifies an increased ability to cover interest expenses.
Throughout 2021 and 2022, the interest coverage ratio maintained high levels, fluctuating within a relatively stable range, with values such as 46.89, 40.11, and reaching above 50 in some quarters (notably 54.26 on September 30, 2022, and 67.99 on December 31, 2022), further underscoring consistent operational profitability relative to interest obligations. The upward trend persisted into 2023 with ratios of 70.60 on March 31 and 72.55 on June 30, suggesting ongoing improvements in earnings capacity and financial stability.
However, a noticeable decline appears starting in the latter part of 2023 and into 2024, with ratios decreasing to 58.72 (December 31, 2023), then slightly declining further to 45.08 (September 30, 2024), and continuing downward with projections of 47.79 (December 31, 2024), 32.89 (March 31, 2025), and 21.34 (June 30, 2025). Despite this decline, the ratios remain above 20, indicating that the company still retains a cautious but adequate margin of earnings to service its interest expenses.
Overall, the data reflect a period of strong interest coverage from 2020 through mid-2023, followed by a gradual reduction in coverage ratios, which warrants attention but does not presently suggest immediate concern about the company's ability to meet its interest obligations. The declining trend may be indicative of increased debt levels, reduced earnings, or both, emphasizing the importance of ongoing monitoring of earnings consistency and debt management practices moving forward.