Super Micro Computer Inc (SMCI)
Solvency ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.17 | 0.16 | 0.17 | 0.01 | 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 |
| Debt-to-capital ratio | 0.21 | 0.22 | 0.24 | 0.02 | 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 |
| Debt-to-equity ratio | 0.27 | 0.29 | 0.31 | 0.02 | 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 |
| Financial leverage ratio | 1.56 | 1.85 | 1.81 | 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 | 1.80 | 1.89 |
Super Micro Computer Inc has shown fluctuations in its solvency ratios over the years. The Debt-to-assets ratio has generally been low, with a slight increase from 0.01 in December 31, 2021 to 0.17 in June 30, 2024, but has since decreased to 0.17 by December 31, 2024. The Debt-to-capital ratio followed a similar trend, starting at 0.02 in December 31, 2020, peaking at 0.24 in June 30, 2024, and then decreasing to 0.21 by December 31, 2024.
The Debt-to-equity ratio has also fluctuated, with a notable increase from 0.12 in December 31, 2021 to 0.31 in June 30, 2024, before decreasing to 0.27 by December 31, 2024. The Financial leverage ratio indicates the company's level of reliance on debt financing, showing an increasing trend from 1.69 in September 30, 2020 to a peak of 2.41 in March 31, 2022, before gradually declining to 1.56 by December 31, 2024.
Overall, Super Micro Computer Inc's solvency ratios suggest that the company has maintained a relatively low level of debt compared to its assets and equity. However, the fluctuations in these ratios over the years indicate a varying degree of leverage and financial risk that should be monitored closely.
Coverage ratios
| 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
Interest coverage ratio measures a company's ability to cover its interest expenses with its earnings before interest and taxes (EBIT).
Based on the data provided for Super Micro Computer Inc:
- The interest coverage ratio has shown an overall increasing trend over the years, indicating improved ability to meet interest obligations from operating earnings.
- The ratio was relatively stable around 35-40 in 2020 but started to increase significantly from March 2021 onwards, reaching a peak of 84.72 in September 2023.
- However, there was a slight decrease in the ratio towards the end of 2023, possibly indicating a change in the company's financial position or profitability.
- The ratio slightly declined further in December 2024 but still remained relatively healthy, indicating that the company's earnings are sufficient to cover its interest expenses.
Overall, the trend in Super Micro Computer Inc's interest coverage ratio suggests a strong ability to meet interest obligations, with some fluctuations noted in recent periods. Investors and creditors may view the company favorably due to its improving interest coverage ratio.