Sandisk Corp (SNDK)
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 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| 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 |
| 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 |
| 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 |
| Financial leverage ratio | 1.41 | 1.41 | 1.19 | 1.15 | 1.22 | — | — | 0.00 | 1.78 | 1.61 | 1.61 | 1.63 | 1.59 | 1.55 | 1.52 | 1.47 | 1.46 | 1.51 | 1.35 | 1.31 |
The analyzed solvency ratios for Sandisk Corp from the provided data reveal several noteworthy trends and observations.
Firstly, the debt-based ratios, including the debt-to-assets ratio, debt-to-capital ratio, and debt-to-equity ratio, consistently register at zero across multiple reporting periods, from June 30, 2013, through the end of 2015, and up to the third quarter of 2023, with projections extending to mid-2025. This persistent zero value indicates that the company maintained no recorded debt or leverage in these periods, implying an absence of financial leverage from both debt and equity perspectives.
Secondly, the financial leverage ratio, which reflects the proportion of a company's assets financed by shareholders' equity, shows a notable increase from approximately 1.31 in June 2013 to a peak of 1.78 in March 2016. This suggests that during this period, Sandisk significantly increased its reliance on shareholders' equity relative to assets financed by other means. After reaching this peak, the ratio diminishes to 1.22 by June 2024, indicating a decrease in financial leverage, but still remaining above the initial levels observed in 2013.
The convergence of near-zero debt ratios alongside a variable but generally increasing financial leverage ratio may imply a complex capital structure or the potential absence of detailed debt-related data in the provided information. Alternatively, it could suggest that the company’s liabilities are minimal or held in forms not captured within traditional debt metrics during these periods.
Overall, the data indicates that Sandisk Corp maintained an essentially debt-free capital structure over the analyzed periods, with a variable degree of financial leverage primarily driven by adjustments in shareholders' equity relative to assets. The absence of debt appears stable throughout the timeline, potentially reflecting a strategic choice or robust internal financing capabilities, consistent with a low or negligible risk profile from a solvency standpoint.
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 | Mar 31, 2016 | Dec 31, 2015 | Sep 30, 2015 | Jun 30, 2015 | Mar 31, 2015 | Dec 31, 2014 | Sep 30, 2014 | Jun 30, 2014 | Mar 31, 2014 | Dec 31, 2013 | Sep 30, 2013 | Jun 30, 2013 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Interest coverage | -23.08 | -49.34 | 23.50 | 4.52 | -25.10 | -25.38 | -25.50 | -0.73 | 42.32 | 13.44 | 9.97 | 8.96 | 9.75 | 13.17 | 15.58 | 18.25 | 19.14 | 16.57 | 13.65 | 9.27 |
The interest coverage ratio data for Sandisk Corp reveals a fluctuating pattern over the observed period, highlighting variable levels of the company’s ability to meet its interest obligations from its earnings before interest and taxes (EBIT).
From June 30, 2013, to March 31, 2014, the interest coverage ratio exhibits a strong upward trend, rising from 9.27 to 19.14. This indicates a period during which the company improved its ability to cover interest payments, reflecting increasing earnings relative to interest expenses. The ratio maintained high levels through September 2014, peaking at 15.58 in September 2014 before experiencing a decline by December 2014 to 13.17.
The subsequent period from March 2015 to September 2015 shows some stability, with ratios ranging from 9.75 to 13.44, suggesting moderate earnings to cover interest. However, a significant shift occurs in March 2016, where the ratio spikes dramatically to 42.32, implying exceptionally strong earnings relative to interest expenses at that time.
Beginning in late 2018, data for September 2023 and subsequent periods shows a sharp deterioration, with the interest coverage ratio turning negative. Specifically, for September to December 2023 and into 2024, the ratios plummeted to values such as -0.73, -25.50, -25.38, and -25.10, indicating that the company's earnings before interest and taxes were insufficient to cover interest expenses, even resulting in an inability to meet interest obligations altogether during these periods.
Interestingly, from September 2024 onward, there is an apparent recovery, with ratios turning positive again (e.g., 4.52 and 23.50). Nonetheless, projected future ratios fluctuate markedly, including negative figures such as -49.34 and -23.08 in March and June 2025, respectively, signifying severe challenges in covering interest expenses based on earnings.
Overall, the data illustrates a period of strong interest coverage in the early to mid-2010s, followed by notable decline towards the later years, culminating in periods of negative interest coverage ratios. This progression indicates increasing financial stress and potential difficulties in meeting interest obligations, especially from late 2023 onward, suggesting a volatile earning profile and increased financial risk in recent periods.