Super Micro Computer Inc (SMCI)
Profitability ratios
Return on sales
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Gross profit margin | 13.75% | 14.13% | 18.01% | 15.40% | 15.03% |
| Operating profit margin | 8.08% | 8.47% | 10.68% | 6.45% | 2.61% |
| Pretax margin | 8.10% | 8.49% | 10.59% | 6.48% | 3.33% |
| Net profit margin | 7.69% | 8.09% | 8.98% | 5.49% | 3.14% |
The profitability ratios of Super Micro Computer Inc. over the specified period exhibit notable fluctuations across different metrics.
Starting with the gross profit margin, there was a slight increase from 15.03% on June 30, 2021, to 15.40% on June 30, 2022. This upward trend accelerated considerably, reaching 18.01% by June 30, 2023. However, subsequent periods saw a decline to 14.13% in 2024 and further to 13.75% in 2025, indicating a potential compression in gross margins or increased costs impacting gross profitability.
The operating profit margin showed a more pronounced improvement, rising from 2.61% in 2021 to 6.45% in 2022, and continuing upward to 10.68% in 2023. This suggests enhanced operational efficiency or better management of operating expenses during that period. The margin then decreased to 8.47% in 2024 and remained relatively stable at 8.08% in 2025, signaling some erosion in operating profitability after the peak in 2023.
Pre-tax margins followed a similar trend, increasing from 3.33% in 2021 to 6.48% in 2022, and reaching 10.59% in 2023. Afterwards, margins contracted slightly to 8.49% in 2024 and further to 8.10% in 2025, reflecting a narrowing of pre-tax profitability margins in recent years.
The net profit margin exhibited growth from 3.14% in 2021 to 5.49% in 2022, and peaked at 8.98% in 2023. Subsequently, it declined slightly to 8.09% in 2024 and further to 7.69% in 2025. This pattern reinforces the overall trend of improving profitability culminating in 2023, followed by a modest decline in subsequent periods.
Overall, the company's profitability ratios suggest a period of significant improvement up to 2023, driven by increases in both gross and operating margins, as well as pre-tax and net profit margins. Nonetheless, the subsequent decline in these ratios points to challenges in maintaining the margin levels achieved at their peak, possibly due to rising costs, competitive pressures, or other operational factors affecting profitability in later years.
Return on investment
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | |
|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 12.32% | 12.73% | 20.71% | 10.46% | 4.14% |
| Return on assets (ROA) | 11.73% | 12.15% | 17.42% | 8.90% | 4.99% |
| Return on total capital | 22.77% | 23.14% | 38.60% | 21.23% | 11.31% |
| Return on equity (ROE) | 21.28% | 22.09% | 32.45% | 20.00% | 10.20% |
The profitability ratios of Super Micro Computer Inc. over the period from June 30, 2021, to June 30, 2025, demonstrate notable variations in the company's ability to generate earnings relative to its assets, capital, and equity.
Beginning with the Operating Return on Assets (Operating ROA), there is a substantial increase from 4.14% in 2021 to 10.46% in 2022, followed by a significant surge to 20.71% in 2023. This indicates an improved operational efficiency in utilizing assets to generate operating income. However, in the subsequent years, the ratio declines to 12.73% in 2024 and slightly decreases further to 12.32% in 2025, suggesting a moderation in operational efficiency or possibly increased costs or competitive pressures affecting operating margins.
The Return on Assets (ROA) itself reflects a similar trend, rising from 4.99% in 2021 to 8.90% in 2022 and reaching a peak of 17.42% in 2023. The decline to 12.15% in 2024 and further to 11.73% in 2025 indicates a reduction in overall asset utilization effectiveness in generating net income, possibly due to changes in asset base or profit margins.
Regarding the Return on Total Capital, the ratio exhibits a sharp increase from 11.31% in 2021 to 21.23% in 2022 and peaks markedly at 38.60% in 2023. Although this ratio decreases to 23.14% in 2024 and remains relatively stable at 22.77% in 2025, the figures suggest a strong return on invested capital during the peak years, driven by improved profitability relative to the total capital employed.
The Return on Equity (ROE) shows a progressive increase from 10.20% in 2021 to 20.00% in 2022, and further to 32.45% in 2023, indicating enhanced profitability attributable to shareholders during this period. Subsequently, the ratio declines to 22.09% in 2024 and 21.28% in 2025, reflecting a normalization in return levels but remaining at a relatively high level compared to earlier years.
Overall, these ratios suggest that Super Micro Computer Inc. experienced a period of rapid profitability growth culminating in 2023, followed by a stabilization or slight decline in subsequent years. The company appears to have improved operational efficiency and returns on capital and equity during the growth phase, with some weakening in these metrics afterward, possibly due to market dynamics, operational challenges, or increased costs.