Analysis of Solvency Ratios
Quarterly Data
Solvency ratios also known as long-term debt ratios measure a company ability to meet long-term obligations.
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- Analysis of Long-term (Investment) Activity Ratios
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- Enterprise Value (EV)
- Enterprise Value to EBITDA (EV/EBITDA)
- Operating Profit Margin since 2007
- Return on Equity (ROE) since 2007
- Current Ratio since 2007
- Debt to Equity since 2007
- Price to Earnings (P/E) since 2007
- Analysis of Debt
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Solvency Ratios (Summary)
Super Micro Computer Inc., solvency ratios (quarterly data)
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
Over the analyzed periods, the company's financial leverage ratio exhibited an overall upward trend with fluctuations. Starting at 1.75, it rose steadily to peak around 2.41 before dipping below 2.0 in later quarters and then increasing again to reach 2.22. This pattern suggests a variable degree of asset financing through equity, with moments of intensified leverage.
The debt-to-equity ratio began at a minimal level near 0.02, indicating very low reliance on debt relative to equity. It remained low through early periods but showed a sharp increase from mid-2020 onward, peaking at 0.43 by early 2022. After a subsequent decline to 0.07 by late 2021, the ratio again rose in the final quarters, reaching the highest recorded value of 0.75 by mid-2025. This rise points to a growing dependence on debt financing relative to shareholder equity in recent years.
Similar trends are observed in the debt-to-capital and debt-to-assets ratios. Both ratios started low at about 0.02 and 0.01 respectively and increased notably from 2020. Debt-to-capital peaked around 0.3 in early 2022 before falling and then rising again to 0.43 by the latest period. Debt-to-assets showed a corresponding rise, registering 0.19 by mid-2022, a decrease thereafter, and a climb back to 0.34 by mid-2025. These movements reinforce the observation of a cyclical approach to debt financing with recent intensification.
The interest coverage ratio was unavailable prior to March 2020 but thereafter displayed strong capacity to service interest expenses. It consistently stayed well above 30, reaching a maximum near 85 in late 2023. Although there was some decline from this peak, values remained robust through the horizon analyzed, indicating the company maintained substantial earnings relative to interest obligations despite increased leverage.
In summary, the company showed a pattern of increasing leverage from very low levels in 2019 to moderate and occasionally high debt usage in later years. This was accompanied by strong interest coverage ratios indicative of healthy earnings to meet interest costs. The fluctuations suggest ongoing adjustments in capital structure strategy, balancing growth or investment needs with financial risk considerations.
- Financial Leverage
- Started near 1.75, increased to above 2.4, fluctuated below and above 2.0, ended near 2.22.
- Debt to Equity Ratio
- Very low around 0.02 initially, rose sharply to 0.43 by early 2022, dropped to as low as 0.07, then increased again to peak at 0.75.
- Debt to Capital Ratio
- Mirrored debt-to-equity pattern: low initially, peak around 0.3, decline, then rise to 0.43 by the final period.
- Debt to Assets Ratio
- Low start near 0.01, increased to 0.19 by mid-2022, dropped and then rose again to 0.34 by mid-2025.
- Interest Coverage Ratio
- Data available from early 2020, remained strong throughout, peaking near 85, indicating solid ability to cover interest expenses despite leverage increase.
Debt Ratios
Coverage Ratios
Debt to Equity
Super Micro Computer Inc., debt to equity calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Lines of credit and current portion of term loans | |||||||||||||||||||||||||||||||
| Term loans, non-current | |||||||||||||||||||||||||||||||
| Convertible notes | |||||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||||
| Total Super Micro Computer, Inc. stockholders’ equity | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Debt to equity1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Debt to Equity, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Debt to equity = Total debt ÷ Total Super Micro Computer, Inc. stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
- Total Debt
-
Total debt exhibited a general upward trend with notable fluctuations over the periods analyzed.
From September 2019 to June 2021, total debt increased moderately from approximately $22.5 million to nearly $98.2 million, with a brief dip between March and June 2020.
A significant surge occurred between June 2021 and December 2021, with total debt rising sharply from around $98 million to over $315 million, peaking at approximately $596.8 million by June 2022.
Afterwards, total debt declined substantially to $170.1 million by December 2022, then fluctuated moderately through mid-2023.
From September 2023 forward, debt levels rose again dramatically, notably reaching $1.86 billion by March 2024 and continuing upward to a peak of around $4.76 billion by June 2025.
- Total Stockholders' Equity
-
Stockholders' equity demonstrated a consistent upward trajectory throughout the periods.
Starting at approximately $971.7 million in September 2019, equity rose steadily each quarter, surpassing $1 billion by December 2019 and continuing growth to around $1.4 billion by June 2022.
This growth accelerated in subsequent years, reaching nearly $3.1 billion by December 2023.
Further substantial increases followed, with stockholders' equity more than doubling to over $6.3 billion by March 2025, before a minor decline to approximately $6.3 billion by June 2025.
- Debt to Equity Ratio
-
The debt to equity ratio fluctuated substantially, reflecting changes in both debt and equity levels over time.
Initially, the ratio was low and stable around 0.02 to 0.03 from late 2019 through mid-2020.
The ratio increased to approximately 0.09 by June 2021, then jumped significantly to above 0.25 by September 2021 and peaked near 0.43 by March 2022.
A subsequent reduction in the ratio occurred during late 2022, dropping to lows near 0.09 by December 2022, corresponding with declines in debt relative to equity.
From 2023 onwards, the ratio showed greater volatility, increasing sharply again to 0.75 by June 2025, driven primarily by rapid debt accumulation relative to equity growth.
- Summary
-
The overall financial structure reflects significant capital expansion characterized by rapidly increasing stockholders’ equity coupled with episodic large increases in total debt.
While equity growth has been steady and substantial, the notable spikes in debt have led to pronounced fluctuations in leverage, as evidenced by the debt to equity ratio changes.
This dynamic suggests periods of aggressive debt financing possibly aimed at supporting growth or other strategic initiatives, balanced against a strong and expanding equity base.
Debt to Capital
Super Micro Computer Inc., debt to capital calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Lines of credit and current portion of term loans | |||||||||||||||||||||||||||||||
| Term loans, non-current | |||||||||||||||||||||||||||||||
| Convertible notes | |||||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||||
| Total Super Micro Computer, Inc. stockholders’ equity | |||||||||||||||||||||||||||||||
| Total capital | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Debt to capital1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Debt to Capital, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Debt to capital = Total debt ÷ Total capital
= ÷ =
2 Click competitor name to see calculations.
The financial data reveals significant fluctuations and an overall increasing trend in the company's debt levels and capital structure over the quarters analyzed.
- Total Debt
- The total debt figures indicate a pronounced upward trend from the beginning to the end of the period. Starting at approximately 22.5 million USD in September 2019, debt rose moderately through 2020 and early 2021, then surged substantially from mid-2021 onward. The peak occurs in the first half of 2025, with debt reaching over 4.7 billion USD. Notably, there are sharp increases around September 2021 and again from late 2023 through 2025, indicating major financing activities or borrowings during these periods.
- Total Capital
- The total capital similarly shows an increasing trend, beginning at about 994 million USD in September 2019 and rising fairly steadily throughout the timeline. Despite some fluctuations, especially between late 2022 and early 2023 where there is a decline from roughly 2 billion to 1.95 billion USD, the capital base grows markedly afterwards, culminating in an increase to over 11 billion USD by mid-2025. This growth in capital suggests ongoing investment or retained earnings supporting expansion.
- Debt to Capital Ratio
- The debt to capital ratio reflects the relationship between indebtedness and the company's overall capital structure. It remains low and stable around 0.02 to 0.04 through early 2020, indicating minimal leverage. However, from 2021 onwards, the ratio exhibits more volatility and elevated levels, peaking at 0.3 in mid-2022 and then fluctuating downward and upward afterward. The ratio reaches a notably high level of 0.43 by mid-2025, which corresponds with the increased total debt. These fluctuations suggest periods of varying leverage, with the company assuming higher financial risk in recent years.
In summary, the data demonstrates growing financial leverage and a substantial increase in both debt and overall capital. The rise in the debt to capital ratio highlights increased reliance on debt financing relative to total capital, especially from 2021 forward. These trends may reflect strategic initiatives requiring greater funding, changes in capital structure policy, or market conditions influencing borrowing capacity and investment levels.
Debt to Assets
Super Micro Computer Inc., debt to assets calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Lines of credit and current portion of term loans | |||||||||||||||||||||||||||||||
| Term loans, non-current | |||||||||||||||||||||||||||||||
| Convertible notes | |||||||||||||||||||||||||||||||
| Total debt | |||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Debt to assets1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Debt to Assets, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Debt to assets = Total debt ÷ Total assets
= ÷ =
2 Click competitor name to see calculations.
The analysis of the financial data over the specified quarterly periods reveals multiple notable trends regarding debt levels, asset growth, and leverage ratios.
- Total Debt (US$ in thousands)
- The total debt exhibits an overall increasing trend with considerable fluctuations. Starting at 22,544 thousand USD in September 2019, debt levels rose steadily with some volatility, reaching exceptionally high values in recent quarters. Notably, the debt surged sharply in September 2021 to 278,808 thousand USD and continued rising to peak at over 2,258,718 thousand USD by March 2025. This sharp increase reflects significant borrowing or liability accumulation, with intermittent decreases seen in between, such as in September 2022 and September 2023. These fluctuations suggest strategic debt management or external factors influencing leverage requirements.
- Total Assets (US$ in thousands)
- Total assets show a consistent growth pattern throughout the timeline. Beginning at 1,701,273 thousand USD in September 2019, assets expanded steadily to nearly 14,018,429 thousand USD by June 2025. This steady increase indicates substantial asset acquisition, possibly reflecting organic growth or capital investments. The pace of asset growth accelerates particularly after mid-2021, aligning with rising debt levels, which might imply leveraged asset expansion strategies.
- Debt to Assets Ratio
- The debt to assets ratio, which measures financial leverage, generally increases over the analyzed period, highlighting a rising use of debt relative to asset base. Initially low at 0.01-0.02 until mid-2020, the ratio climbs to reach as high as 0.34 by June 2025. This ratio exhibits some variability with peaks and declines, such as a notable rise to 0.18-0.19 at the end of 2021 and a temporary decline to 0.06 in late 2022 before climbing again. The rising leverage ratio highlights growing financial risk due to increased indebtedness compared to assets, although the substantial asset growth somewhat mitigates this risk. Overall, the company's leverage position has strengthened, suggesting increased reliance on debt financing.
In summary, the financial data indicates robust asset growth accompanied by significantly increased debt levels and higher leverage ratios over the periods analyzed. The rising debt to assets ratio points to an elevated risk profile, though it occurs alongside expanding assets potentially supporting the debt load. These patterns imply strategic use of debt to finance growth, with an emphasis on balancing expansion with financial risk management.
Financial Leverage
Super Micro Computer Inc., financial leverage calculation (quarterly data)
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||||
| Total Super Micro Computer, Inc. stockholders’ equity | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Financial leverage1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Financial Leverage, Competitors2 | |||||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Financial leverage = Total assets ÷ Total Super Micro Computer, Inc. stockholders’ equity
= ÷ =
2 Click competitor name to see calculations.
The analysis of the quarterly financial data reveals several notable trends regarding the company's asset base, equity position, and financial leverage over the given periods.
- Total Assets
- Total assets displayed a general upward trend from September 30, 2019, through March 31, 2025. Starting at approximately $1.7 billion, assets steadily increased to reach over $14 billion by mid-2025. Despite some fluctuations, including a notable dip around late 2022 to early 2023, the overall trajectory is one of growth, indicating an expansion in the company's resource base over the examined time frame.
- Stockholders’ Equity
- Shareholders’ equity also exhibited steady growth, rising from around $972 million in September 2019 to approximately $6.3 billion by mid-2025. The increases in equity generally parallel asset growth, although equity experienced a relatively smoother and more consistent rise, with only minor deviations. This suggests effective retention of earnings or issuance of stock contributing to strengthening the financial foundation of the company.
- Financial Leverage
- The financial leverage ratio exhibited variability over the periods, starting at 1.75 in September 2019 and reaching as high as 2.41 by March 2022. Following this peak, leverage ratios decreased to around 1.56 in late 2024 before climbing back to 2.22 in mid-2025. The fluctuations indicate changes in the company’s capital structure, with periods of increased reliance on external financing followed by phases of deleveraging. The downward movement post-2022 may reflect efforts to reduce financial risk or optimize the balance between debt and equity, while the subsequent rise after late 2024 suggests renewed leverage usage.
Overall, the company demonstrates significant asset growth aligning with increases in equity, implying a robust expansion phase. Meanwhile, financial leverage adjustments point to dynamic capital management, balancing growth ambitions with prudent financing strategies.
Interest Coverage
Super Micro Computer Inc., interest coverage calculation (quarterly data)
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||||
| Add: Income tax expense | |||||||||||||||||||||||||||||||
| Add: Interest expense | |||||||||||||||||||||||||||||||
| Earnings before interest and tax (EBIT) | |||||||||||||||||||||||||||||||
| Solvency Ratio | |||||||||||||||||||||||||||||||
| Interest coverage1 | |||||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||||
| Interest Coverage, Competitors2 | |||||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||||
Based on: 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30), 10-K (reporting date: 2020-06-30), 10-Q (reporting date: 2020-03-31), 10-Q (reporting date: 2019-12-31), 10-Q (reporting date: 2019-09-30).
1 Q4 2025 Calculation
Interest coverage
= (EBITQ4 2025
+ EBITQ3 2025
+ EBITQ2 2025
+ EBITQ1 2025)
÷ (Interest expenseQ4 2025
+ Interest expenseQ3 2025
+ Interest expenseQ2 2025
+ Interest expenseQ1 2025)
= ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
- EBIT Trends
-
Earnings before interest and tax (EBIT) exhibited significant fluctuations across the observed periods. Initially, EBIT declined during the first half of 2020, reaching a low in June 2020. This was followed by a recovery and subsequent growth, peaking notably in June 2022 and September 2022. However, a sharp decline was observed in March 2023, after which EBIT experienced pronounced volatility with periods of substantial increases and decreases. The highest values occurred in late 2024 and early 2025, indicating strong earnings performance during these recent quarters.
- Interest Expense Trends
-
Interest expense demonstrated a general upward trajectory over the time span, with intermittent periods of accelerated increases. Initial values were relatively low and stable but started to rise markedly from late 2021 onward. Peaks in interest expense were observed in late 2024 and mid-2025, reaching the highest recorded values in the dataset. This suggests an increasing cost of debt or increased borrowing during these later periods.
- Interest Coverage Ratio Trends
-
The interest coverage ratio, which measures the ability to meet interest obligations from EBIT, showed mixed trends. Data for this ratio starts in June 2020 and generally indicates strong coverage with values well above 30 throughout the period. Notably, the ratio displayed a pattern of initial stability with some incremental improvements until mid-2023. Afterward, the ratio exhibited a decline towards 2025, reflecting increased interest expenses relative to earnings. Despite this downward trend, the ratio remained above typical minimum acceptable levels, indicating continued operational ability to cover interest payments, albeit with reduced margins in the later quarters.
- Overall Insights
-
The data reveals periods of robust earnings growth interspersed with volatility, alongside rising interest expenses which may impact financial flexibility. EBIT’s strong recovery and peaks imply effective operational performance at certain intervals, whereas the increasing interest expense and gradual decline in interest coverage ratio towards the end of the timeline point to heightened financial costs that could warrant attention for debt management and cost control measures. Maintaining high interest coverage ratios despite rising expenses suggests resilient profitability, but the narrowing margins in recent periods suggest potential challenges ahead if the trends persist.