Super Micro Computer Inc (SMCI)
Solvency ratios
| 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 | Jun 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 | 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 | 1.80 |
The solvency ratios of Super Micro Computer Inc., as reflected in the provided data, demonstrate a consistent pattern of minimal or nonexistent leverage and debt-related risk over the analyzed period.
The Debt-to-Assets Ratio consistently remains at 0.00 across all reporting periods, indicating that the company's assets are financed entirely through equity or other non-debt sources. This suggests an extremely conservative capital structure with no reliance on debt financing, which minimizes bankruptcy risk and financial leverage concerns.
Similarly, the Debt-to-Capital Ratio and Debt-to-Equity Ratio are both reported as zero throughout the entire timeframe. This further reinforces the conclusion that the company operates without leverage, possessing no outstanding debt in relation to its capital or equity.
The Financial Leverage Ratio, which measures how much assets are financed by shareholders’ equity relative to total assets, exhibits a pattern of moderate fluctuation within a range roughly from 1.56 to 2.41. The values above 1 imply that assets are primarily financed by equity, but the ratios do not indicate any significant reliance on debt. At their peak (around March and June 2022), the ratios approximate 2.4, signifying that assets are financed approximately equally by equity and debt at those points; however, the ratios decline again thereafter, and the ratios generally hover above 1.5.
Overall, the data indicate that Super Micro Computer Inc. maintains an entirely debt-free capital structure during the analyzed period. Its solvency profile is characterized by very low financial risk associated with leverage, with the company choosing to finance operations exclusively through equity or other non-debt sources. This approach mitigates financial distress risks, albeit potentially at the expense of limiting leverage-related growth opportunities.
Coverage ratios
| 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 | Jun 30, 2020 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | 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 | 46.84 |
The interest coverage ratios for Super Micro Computer Inc. over the specified periods depict a consistent and robust ability to meet interest obligations from its earnings. Starting from June 30, 2020, with a ratio of 46.84, the coverage remained high, displaying only slight fluctuations through subsequent quarters. During the remainder of 2020, the ratio fluctuated marginally around the low 40s to mid-40s, indicating a strong capacity to cover interest expenses.
Throughout 2021, the ratio experienced a moderate decline, reaching a low of 40.11 at December 31, 2021, but then rebounded to near 50 in the subsequent quarters. Notably, at the end of March 2022, the ratio was 48.76, and it increased further, peaking at 54.26 by September 2022, and achieving an all-time high of 67.99 at December 2022. These elevated ratios suggest an enhanced ability to service interest expenses, likely driven by increased earnings.
The upward trend persisted into the first half of 2023, with ratios reaching as high as 72.55 at June 30, 2023, and maintaining a high level of 85.57 at September 2023. Although there was a decrease to 58.72 by December 2023, the ratio remained substantially above 50, indicating continued strong coverage.
Subsequent data from early 2024 shows ratios of 58.63 in March, 63.74 in June, and a slight decline to 45.08 at September 2024. The ratio recovers modestly to 47.79 in December 2024, with a notable decrease to 32.89 projected for March 2025. Despite the fluctuations, the ratios consistently reflect a strong ability to meet interest obligations, with values well above the threshold of 1.0, which indicates that the company’s earnings before interest and taxes comfortably cover interest expenses.
Overall, the trend demonstrates Super Micro Computer Inc.’s solid financial health concerning interest coverage, characterized by high and relatively stable ratios over time, with no indication of impending difficulty in servicing interest obligations.