Analysis of Debt
Total Debt (Carrying Amount)
Super Micro Computer Inc., balance sheet: debt
US$ in thousands
Based on: 10-K (reporting date: 2025-06-30), 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30).
The reported debt data reveals significant fluctuations and notable growth in the company's financial obligations over the examined periods. The analysis highlights distinct trends for different components of debt, as well as overall debt levels.
- Lines of credit and current portion of term loans
- This category shows a marked increase from 23,704 thousand USD in mid-2020 to a peak of 449,146 thousand USD by mid-2022. Subsequently, there is a pronounced decline to 170,123 thousand USD in mid-2023, followed by a resurgence to 402,346 thousand USD in mid-2024, before dropping sharply to 75,060 thousand USD in mid-2025. These fluctuations indicate variable short-term borrowing needs or repayment schedules across the periods.
- Term loans, non-current
- Non-current term loans also exhibit an upward trend initially, rising from 5,697 thousand USD in mid-2020 to 147,618 thousand USD in mid-2022. Thereafter, a steady decline is observed with balances decreasing to 120,179 thousand USD in mid-2023, 74,083 thousand USD in mid-2024, and further down to 37,415 thousand USD in mid-2025. This pattern suggests amortization or refinancing actions leading to reduced long-term liabilities post-2022.
- Convertible notes
- Convertible notes emerge as a newly recorded and significant element starting mid-2024, with a substantial balance of 1,697,716 thousand USD that escalates dramatically to 4,645,178 thousand USD by mid-2025. This rapid increase highlights a strategic shift or capital structure change involving significant issuance of convertible debt instruments.
- Total lines of credit, term loans, and convertible notes (carrying amount)
- The aggregate debt burden reflects the combined impact of the above components, rising moderately from 29,401 thousand USD in mid-2020 to nearly 597,000 thousand USD in mid-2022. Following this peak, total reported debt decreases to 290,302 thousand USD in mid-2023. However, a sharp escalation ensues in mid-2024 to over 2.17 million thousand USD, primarily driven by convertible notes, culminating in a total debt of approximately 4.76 million thousand USD in mid-2025. This overall trend signifies a significant increase in leverage, with a notable strategic emphasis on convertible debt instruments in the most recent periods.
Total Debt (Fair Value)
| Jun 30, 2025 | |
|---|---|
| Selected Financial Data (US$ in thousands) | |
| Lines of credit and term loans | 112,475) |
| 2029 Convertible Notes | 1,801,900) |
| 2028 Convertible Notes | 818,500) |
| 2030 Convertible Notes | 2,576,600) |
| Total lines of credit, term loans, and convertible notes (fair value) | 5,309,475) |
| Financial Ratio | |
| Debt, fair value to carrying amount ratio | 1.12 |
Based on: 10-K (reporting date: 2025-06-30).
Weighted-average Interest Rate on Debt
Weighted-average interest rate on lines of credit, term loans, and convertible notes: 2.06%
| Interest rate | Debt amount1 | Interest rate × Debt amount | Weighted-average interest rate2 |
|---|---|---|---|
| 5.12% | 30,000) | 1,536) | |
| 2.08% | 11,399) | 237) | |
| 1.83% | 28,822) | 527) | |
| 2.03% | 1,846) | 37) | |
| 2.22% | 13,678) | 304) | |
| 1.92% | 9,632) | 185) | |
| 2.02% | 17,098) | 345) | |
| 3.86% | 1,703,700) | 65,763) | |
| 2.97% | 685,400) | 20,356) | |
| 0.39% | 2,256,100) | 8,799) | |
| Total | 4,757,675) | 98,090) | |
| 2.06% | |||
Based on: 10-K (reporting date: 2025-06-30).
1 US$ in thousands
2 Weighted-average interest rate = 100 × 98,090 ÷ 4,757,675 = 2.06%