Super Micro Computer Inc (SMCI)

Fixed asset turnover

		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
Revenue (ttm)	US$ in thousands	20,819,880	18,806,840	14,989,250	11,819,520	9,252,750	7,391,030	7,123,490	6,574,090	6,646,280	6,015,500	5,196,100	4,629,620	4,170,011	3,827,897	3,557,417	3,384,563	3,261,090	3,301,727	3,339,281	3,297,389
Property, plant and equipment	US$ in thousands	477,492	451,060	414,008	385,566	297,102	291,669	290,240	290,038	289,255	290,752	285,972	282,319	280,282	284,148	274,713	265,566	255,406	241,852	233,785	230,477
Fixed asset turnover		43.60	41.69	36.21	30.65	31.14	25.34	24.54	22.67	22.98	20.69	18.17	16.40	14.88	13.47	12.95	12.74	12.77	13.65	14.28	14.31

December 31, 2024 calculation

Fixed asset turnover = Revenue (ttm) ÷ Property, plant and equipment
= $20,819,880K ÷ $477,492K
= 43.60

The fixed asset turnover ratio measures how efficiently a company is generating revenue from its fixed assets. For Super Micro Computer Inc, the fixed asset turnover has shown an increasing trend over the years, indicating improved efficiency in utilizing its fixed assets.

From March 31, 2020, to December 31, 2024, the fixed asset turnover ratio has steadily increased from 14.31 to 43.60. This significant increase suggests that the company has been able to generate more revenue per dollar invested in fixed assets over the period.

The continuous improvement in the fixed asset turnover ratio reflects positively on Super Micro Computer Inc's ability to manage and utilize its fixed assets efficiently to drive revenue growth. This trend indicates that the company is effectively utilizing its fixed assets to generate sales, which is a favorable sign of operational efficiency and potentially higher profitability in the future.