Sandisk Corp (SNDK)
Solvency ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Debt-to-assets ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-capital ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Debt-to-equity ratio | 0.00 | 0.00 | 0.00 | 0.00 | 0.00 |
| Financial leverage ratio | 1.41 | 1.22 | 1.21 | 1.21 | 1.61 |
The solvency ratios for Sandisk Corp from December 31, 2015, through June 30, 2025, reveal a consistent pattern indicative of a company predominantly financed through equity, with minimal or no reliance on debt.
The debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio are all reported at zero across all observed periods. This indicates that Sandisk has maintained a debt-free capital structure during these years, with no recorded long-term or short-term debt obligations. The absence of debt signifies a high degree of financial independence, reducing the company's financial risk associated with leverage.
The financial leverage ratio, which measures the extent to which a company uses borrowed funds to finance its assets, shows variation over the period. It decreased from 1.61 at the end of 2015 to 1.21 in mid-2022 and 2023, suggesting a reduction in the reliance on borrowed funds relative to equity during this period. Slight increases to 1.22 in 2024 and 1.41 in 2025 may reflect minor adjustments in leverage strategies or asset structure; however, these ratios remain close to or below typical levels for companies employing minimal debt.
Overall, the data indicates that Sandisk Corp historically maintains a conservative financial posture with no debt and a relatively low leverage ratio, emphasizing reliance on equity financing. The stability and absence of debt imply a strong solvency position; the company is not exposed to leverage-related solvency risks and likely possesses significant debt capacity for future financing if needed.
Coverage ratios
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Dec 31, 2015 | |
|---|---|---|---|---|---|
| Interest coverage | 0.00 | -11.10 | -41.77 | — | 36.42 |
The interest coverage ratio for Sandisk Corp demonstrates significant variability over the observed period. As of December 31, 2015, the company exhibited a very strong interest coverage ratio of 36.42, indicating a comfortable ability to meet interest obligations from earnings before interest and taxes (EBIT).
By June 30, 2022, data is unavailable or not reported, implying either a lack of sufficient information or a possible discontinuation of the relevant financial data during that period. The subsequent ratios reveal substantial deterioration: on June 30, 2023, the interest coverage ratio is reported at -41.77, indicating that the company's earnings before interest and taxes were significantly insufficient to cover its interest expenses, with negative EBIT leading to an inability to service interest costs from operational earnings.
Similarly, as of June 30, 2024, the ratio remains negative at -11.10, although slightly improved compared to the previous year, implying ongoing financial stress and insufficient earnings to cover interest expenses despite some reduction in the negative figure.
By June 30, 2025, the ratio has become zero, suggesting that EBIT has effectively reached breakeven or is zero, and therefore the company is neither generating enough operational earnings to cover interest nor experiencing a positive margin.
Overall, the trend from 2015 through 2025 indicates a dramatic decline in interest coverage, transitioning from a robust position to a problematic one, with periods of negative and zero coverage levels, thus raising concerns about the company's ability to meet its interest obligations consistently in the more recent years.