Super Micro Computer Inc (SMCI)
Profitability ratios
Return on sales
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Gross profit margin | 11.06% | 11.27% | 12.44% | 13.20% | 13.75% | 15.97% | 16.39% | 17.44% | 18.01% | 18.23% | 17.80% | 16.78% | 15.40% | 14.22% | 13.68% | 14.18% | 15.03% | 15.14% | 16.03% | 15.91% |
| Operating profit margin | 5.70% | 6.09% | 7.42% | 8.23% | 8.08% | 9.72% | 9.13% | 9.31% | 10.33% | 10.25% | 10.39% | 8.75% | 6.45% | 4.52% | 3.27% | 3.20% | 3.48% | 2.79% | 2.85% | 2.52% |
| Pretax margin | 5.52% | 5.97% | 7.47% | 8.17% | 8.10% | 9.65% | 9.25% | 9.57% | 10.59% | 10.58% | 10.39% | 8.86% | 6.48% | 4.48% | 3.19% | 3.08% | 3.33% | 2.65% | 2.68% | 2.42% |
| Net profit margin | 4.77% | 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% |
The profitability ratios of Super Micro Computer Inc over the specified periods reveal several notable trends.
Starting with the gross profit margin, there is a general upward trajectory from 15.91% on September 30, 2020, to a peak of approximately 18.23% on March 31, 2023. This indicates an improvement in the company's ability to generate profit from its core operations, reflecting either better pricing strategies, cost efficiencies, or product mix enhancements. However, after reaching the peak in early 2023, the gross margin begins to decline, falling to 16.39% by December 31, 2023, and continuing downward to approximately 11.06% by June 30, 2025. This decline suggests potential increases in cost structures, competitive pressures, or changes in product mix affecting gross profitability.
The operating profit margin shows a similar pattern but with more pronounced variability. From around 2.52% on September 30, 2020, it generally increases, reaching up to 10.39% by December 31, 2022. The peak indicates significant operational efficiency improvements or favorable market conditions during this period. Post-2022, a downward trend is observed, with the operating margin decreasing to approximately 5.70% by June 30, 2025. The decline suggests rising operating costs, increased competition, or other operational challenges impacting profitability.
Regarding pre-tax profit margins, the data reflect a similar trend, climbing from approximately 2.42% in September 2020 to a high of 10.39% in December 2022. This improvement underscores enhanced earnings before tax, but the subsequent decrease to roughly 5.52% by June 2025 indicates deteriorating pre-tax profitability, aligning with trends seen in gross and operating margins.
Finally, net profit margins follow the overarching pattern, with an ascent from about 2.56% in September 2020 to over 8.70% in December 2022, before gradually declining to around 4.77% by June 2025. While the company demonstrated increasing net profitability through late 2022, recent declines suggest margin compression due to higher expenses, lower operating leverage, or increased tax burdens.
In summary, Super Micro Computer Inc exhibited a period of profitability improvement from late 2020 into 2022, driven by gains in gross, operating, pre-tax, and net margins. However, from 2023 onward, all profitability ratios generally declined, indicating increased cost pressures or competitive challenges impacting overall profitability margins. The recent trend warrants closer monitoring for signs of sustained margin compression or potential strategic adjustments.
Return on investment
| Jun 30, 2025 | 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 | |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Operating return on assets (Operating ROA) | 8.94% | 12.23% | 15.88% | 14.26% | 12.18% | 12.96% | 15.62% | 16.80% | 20.02% | 21.12% | 22.45% | 15.94% | 10.46% | 6.81% | 5.09% | 5.05% | 5.53% | 4.72% | 4.90% | 4.58% |
| Return on assets (ROA) | 7.48% | 10.72% | 14.85% | 13.09% | 11.59% | 11.84% | 13.55% | 14.96% | 17.42% | 18.39% | 18.81% | 13.45% | 8.90% | 5.97% | 4.67% | 4.56% | 4.99% | 4.56% | 4.67% | 4.65% |
| Return on total capital | 20.18% | 20.83% | 25.47% | 26.73% | 22.55% | 22.73% | 28.23% | 33.26% | 38.60% | 39.56% | 37.96% | 31.88% | 22.94% | 15.77% | 10.80% | 10.83% | 11.31% | 10.61% | 10.36% | 9.39% |
| Return on equity (ROE) | 16.64% | 18.04% | 23.16% | 24.16% | 21.07% | 20.59% | 23.80% | 28.29% | 32.45% | 33.21% | 31.80% | 27.33% | 20.00% | 14.41% | 10.53% | 9.77% | 10.20% | 8.65% | 8.32% | 7.88% |
The analysis of Super Micro Computer Inc’s profitability ratios over the period from September 2020 through June 2025 reveals several noteworthy trends and patterns.
Operating Return on Assets (Operating ROA):
This ratio demonstrates a general upward trajectory, indicating improving operational efficiency. Starting at 4.58% in September 2020, it saw a consistent increase through 2022, culminating at a peak of 22.45% in December 2022. Post-2022, the ratio experienced some fluctuations, with notable declines in late 2023 and mid-2024, reaching around 12.18% in June 2024. A modest recovery is observed into late 2024, with the ratio reaching approximately 15.88% by December 2024, before declining again into March 2025.
Return on Assets (ROA):
While closely aligned with Operating ROA, ROA exhibited a steadier growth trajectory from approximately 4.65% in September 2020 to a high of 18.81% in December 2022, reflecting enhanced overall asset efficiency. Following this peak, ROA declined gradually, reaching around 11.59% in June 2024, with slight fluctuations thereafter, culminating at roughly 10.72% in March 2025.
Return on Total Capital:
This metric shows substantial growth through 2022, peaking at 37.96% in December 2022. The subsequent period indicates a normalization trend, with ratios decreasing steadily to about 20.83% by March 2025. The pattern suggests an initial period of high capital efficiency followed by a phase of consolidating gains.
Return on Equity (ROE):
ROE displays a rising trend until late 2022, reaching a peak of 31.80% in December 2022, indicating strong profitability relative to shareholders’ equity. After this peak, ROE tends to decline, reaching approximately 16.64% in June 2025. The decline may reflect shifts in leverage, profitability, or equity structure over the period, although the ratios remain positive and above early-pandemic levels.
Summary of Trends:
Across all profitability ratios, there was a period of noticeable improvement from late 2020 into 2022, particularly marked by rapid increases in Operating ROA and ROA, coinciding with peak return metrics in late 2022. This indicates a period of strong operational and overall asset efficiency, likely driven by favorable market conditions or successful strategic initiatives.
Post-2022, profitability ratios generally declined, suggesting some compression in margins, asset utilization, or return generation capabilities. This downtrend persisted through most of 2023 and into the first half of 2024, with intermittent signs of stabilization and modest recovery at year-end 2024. The decline in ratio levels may reflect market or operational adjustments, competitive pressures, or changes in asset deployment.
Overall, Super Micro Computer Inc’s profitability ratios depict a trajectory characterized by robust growth through 2022, followed by a moderate contraction phase, with some signs of stabilization in late 2024. The ratios suggest strong past profitability with recent challenges in maintaining peak levels.
See also:
Super Micro Computer Inc Profitability Ratios (Quarterly Data)