Sanmina (Sanmina) Interest Coverage

: 10.67 (As of Dec. 2023)

View and export this data going back to 1993. Start your Free Trial

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income by its Interest Expense. Sanmina's Operating Income for the three months ended in Dec. 2023 was $90 Mil. Sanmina's Interest Expense for the three months ended in Dec. 2023 was $-8 Mil. Sanmina's interest coverage for the quarter that ended in Dec. 2023 was 10.67. The higher the ratio, the stronger the company's financial strength is.

The historical rank and industry rank for Sanmina's Interest Coverage or its related term are showing as below:

SANM' s Interest Coverage Range Over the Past 10 Years
Min: 6.57 Med: 9.53 Max: 15.85
Current: 11.73

SANM's Interest Coverage is ranked worse than
51.59% of 1599 companies
in the Hardware industry
Industry Median: 12.75 vs SANM: 11.73

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sanmina Interest Coverage Historical Data

The historical data trend for Sanmina's Interest Coverage can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

Note: For Interest Coverage, "No debt" indicates no long-term debt. An indication of "No Debt" does not necessarily mean that the company has no long-term debt obligations; it could be due to missing data in the quarterly or annual report. Use caution when interpreting this information.

* Premium members only.

Sanmina Annual Data

Trend

Sep14

Sep15

Sep16

Sep17

Sep18

Sep19

Sep20

Sep21

Sep22

Sep23

Interest Coverage

9.89

8.78

13.86

15.85

12.72

Sanmina Quarterly Data
	Mar19	Jun19	Sep19	Dec19	Mar20	Jun20	Sep20	Dec20	Mar21	Jun21	Sep21	Dec21	Mar22	Jun22	Sep22	Dec22	Mar23	Jun23	Sep23	Dec23
Interest Coverage																14.87	13.07	10.70	12.55	10.67

Competitive Comparison

For the Electronic Components subindustry, Sanmina's Interest Coverage, along with its competitors' market caps and Interest Coverage data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.

Sanmina Interest Coverage Distribution

For the Hardware industry and Technology sector, Sanmina's Interest Coverage distribution charts can be found below:

* The bar in red indicates where Sanmina's Interest Coverage falls into.

Sanmina Interest Coverage Calculation

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

If Interest Expense is negative and Operating Income is positive, then

Interest Coverage

-1

Operating Income

Interest Expense

Else if Interest Expense is negative and Operating Income is negative, then

The company did not have earnings to cover the interest expense.

Else if Interest Expense is 0 and Long-Term Debt & Capital Lease Obligation is 0, then

The company had no debt ⁽¹⁾.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Sanmina's Interest Coverage for the fiscal year that ended in Sep. 2023 is calculated as

Here, for the fiscal year that ended in Sep. 2023, Sanmina's Interest Expense was $-36 Mil. Its Operating Income was $462 Mil. And its Long-Term Debt & Capital Lease Obligation was $312 Mil.

Interest Coverage	=	-1	*	Operating Income (A: Sep. 2023 )	/	Interest Expense (A: Sep. 2023 )
	=	-1	*	461.712	/	-36.29
	=	12.72

Sanmina's Interest Coverage for the quarter that ended in Dec. 2023 is calculated as

Here, for the three months ended in Dec. 2023, Sanmina's Interest Expense was $-8 Mil. Its Operating Income was $90 Mil. And its Long-Term Debt & Capital Lease Obligation was $308 Mil.

Interest Coverage	=	-1	*	Operating Income (Q: Dec. 2023 )	/	Interest Expense (Q: Dec. 2023 )
	=	-1	*	89.766	/	-8.412
	=	10.67

The higher the ratio, the stronger the company's Financial Strength is.

Sanmina (NAS:SANM) Interest Coverage Explanation

Ben Graham requires that a company has a minimum interest coverage of 5 with the companies he invested. If the interest coverage is less than 2, the company is burdened by debt. Any business slow or recession may drag the company into a situation where it cannot pay the interest on its debt.

Interest Coverage is an important factor when GuruFocus ranks a company's overage Financial Strength .

Sanmina Interest Coverage Related Terms

Thank you for viewing the detailed overview of Sanmina's Interest Coverage provided by GuruFocus.com. Please click on the following links to see related term pages.

Sanmina (Sanmina) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Technology » Hardware » Sanmina Corp (NAS:SANM) » Definitions » Interest Coverage

Comparable Companies

Traded in Other Exchanges

SAYN:Germany SAYN:Germany

Address

2700 North First Street, San Jose, CA, USA, 95134

Website

https://www.sanmina.com

Sanmina Corp is a provider of integrated manufacturing solutions, components, and after-market services to original equipment manufacturers in the communications networks, storage, industrial, defense and aerospace end markets. The company operates in two business segments: Integrated Manufacturing Solutions, which consists of printed circuit board assembly and represents a majority of the firm's revenue; and Components, Products, and Services, which includes interconnect systems and mechanical systems. The firm generates revenue primarily in the United States, China, and Mexico, but has a presence around the world.

Executives

Eugene A Delaney	director	1303 E ALGONQUIN RD, SCHAUMBURG IL 60196
Hedley David V Iii	director	2700 NORTH FIRST STREET, SAN JOSE CA 95134
Alan Mcwilliams Reid	officer: Exec VP,Global Human Resources	2700 NORTH FIRST STREET, SAN JOSE CA 95134
Jure Sola	director, officer: Chairman and CEO	14899 GRANITE WAY, SARATOGA CA 95070
Mythili Sankaran	director	27000 NORTH FIRST STREET, SAN JOSE CA 95134
Susan K Barnes	director
Charlie Mason	officer: EVP, Integrated Mfg Services	2700 NORTH FIRST STREET, SAN JOSE CA 95134
Brent Billinger	officer: SVP & Corp Controller	2700 NORTH FIRST STREET, SAN JOSE CA 95134
John Goldsberry	director	C/O GATEWAY, INC, 7565 IRVINE CENTER DRIVE, IRVINE CA 92618
Kurt Adzema	officer: EVP & CFO	1389 MOFFETT PARK DRIVE, SUNNYVALE CA 94089
Susan A Johnson	director	2700 NORTH FIRST STREET, SAN JOSE CA 95134
Jackie M Ward	director	SYSCO CORPORATION, 1390 ENCLAVE PARWAY, HOUSTON TX 77077
Mario M Rosati	director	650 PAGE MILL RD, PALO ALTO CA 94304
Dennis Young	officer: Exec VP Worldwide Sales	246 OVERALL PHILLIPS ROAD, ELIZABETH TOWN KY 42701
Rita S. Lane	director	1303 E. ALGONQUIN ROAD, SCHAUMBURG IL 60196