Super Micro Computer Inc (SMCI)

Net profit margin

		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
Net income (ttm)	US$ in thousands	1,150,944	1,444,626	1,419,998	1,152,666	1,048,991	732,378	612,577	639,998	587,251	578,377	444,142	285,163	183,503	124,959	110,701	111,865	91,153	88,532	84,564	84,308
Revenue (ttm)	US$ in thousands	21,569,720	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
Net profit margin		5.34%	6.94%	7.55%	7.69%	8.88%	7.92%	8.29%	8.98%	8.93%	8.70%	7.38%	5.49%	3.96%	3.00%	2.89%	3.14%	2.69%	2.71%	2.56%	2.52%

March 31, 2025 calculation

Net profit margin = Net income (ttm) ÷ Revenue (ttm)
= $1,150,944K ÷ $21,569,720K
= 5.34%

The net profit margin of Super Micro Computer Inc exhibits a general upward trend over the observed period from June 30, 2020, to March 31, 2024, with a notable increase in profitability margins. Starting at approximately 2.52% in June 2020, the margin experienced a steady growth trajectory, reaching a peak of 8.98% by June 30, 2023. This period reflects a consistent improvement in the company's efficiency in converting revenue into net profit, possibly driven by favorable market conditions, cost management strategies, or operational efficiencies.

Throughout 2022, the net profit margin showed significant gains, rising from 5.49% in June to 8.70% at the end of December, indicating a substantial enhancement in profitability within that year. The early part of 2023 continued this positive momentum, with margins peaking at 8.93% in the first quarter and slightly increasing to 8.98% in June. However, from September 2023 onwards, a slight decline is observed, with the margin decreasing to 8.29% in September 2023 and further to 7.92% by the end of 2023.

Entering 2024, the margin exhibits some fluctuation but maintains a relatively high level compared to the initial years, with 8.88% reported in March 2024. Nevertheless, the subsequent quarters show a declining trend, with the margin decreasing to 7.69% in June, 7.55% in September, and further down to 6.94% in December 2024. This decline indicates a possible compression of profitability margins as the company progresses into 2025, with the first quarter of 2025 showing a significant reduction to 5.34%.

Overall, the net profit margin development demonstrates a period of substantial improvement between 2020 and mid-2023, followed by a phase of stabilization and eventual decline. The trajectory suggests that while the company has managed to enhance profitability substantially over the period, recent fluctuations and declines may reflect increased competitive pressures, rising costs, or other operational challenges impacting net margins.