Super Micro Computer Inc (SMCI)
Operating return on assets (Operating ROA)
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Operating income | US$ in thousands | 761,142 | 335,167 | 123,947 | 85,654 | 97,233 |
| Total assets | US$ in thousands | 3,674,730 | 3,205,080 | 2,241,960 | 1,918,650 | 1,682,590 |
| Operating ROA | 20.71% | 10.46% | 5.53% | 4.46% | 5.78% |
June 30, 2023 calculation
Operating ROA = Operating income ÷ Total assets
= $761,142K ÷ $3,674,730K
= 20.71%
Super Micro Computer Inc's operating return on assets (operating ROA) is a key financial metric that indicates the efficiency with which the company is utilizing its assets to generate operating income. The trend of the operating ROA over the past five years reveals valuable insights into the company's operational performance and financial health.
From 2019 to 2023, Super Micro Computer Inc's operating ROA has exhibited a generally positive trend, indicating an improvement in the company's ability to generate operating income from its assets. The operating ROA increased from 5.78% in 2019 to 20.71% in 2023. This substantial improvement suggests that the company has been able to effectively increase its operating income relative to its asset base over the past five years.
The rising trend in operating ROA may be attributed to a variety of factors, including operational efficiencies, cost management, and increased revenue generation. Additionally, it implies that the company has been successful in leveraging its assets to enhance profitability and operational performance.
The consistent improvement in operating ROA is a positive signal to investors and stakeholders, indicating that the company has been able to generate more operating income for each dollar invested in assets. It also signifies enhanced operational efficiency and a more effective utilization of resources, which can contribute to sustainable growth and long-term profitability.
Overall, the increasing trend in Super Micro Computer Inc's operating ROA demonstrates the company's ability to generate higher operating income relative to its asset base, reflecting a positive trajectory in its operational performance and financial management over the past five years.
Peer comparison
Jun 30, 2023