Super Micro Computer Inc (SMCI)
Return on assets (ROA)
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Net income | US$ in thousands | 639,998 | 285,163 | 111,865 | 84,308 | 71,918 |
| Total assets | US$ in thousands | 3,674,730 | 3,205,080 | 2,241,960 | 1,918,650 | 1,682,590 |
| ROA | 17.42% | 8.90% | 4.99% | 4.39% | 4.27% |
June 30, 2023 calculation
ROA = Net income ÷ Total assets
= $639,998K ÷ $3,674,730K
= 17.42%
Super Micro Computer Inc's return on assets (ROA) measures the company's ability to generate earnings from its assets. The trend in ROA over the past five years indicates a positive trajectory. In 2019, the ROA was 4.27%, which increased to 4.39% in 2020, demonstrating a marginal improvement. However, the significant jump to 8.90% in 2021 suggests a notable increase in the company's ability to generate earnings from its assets. This trend continued in 2022 with a ROA of 17.42%, signifying a substantial improvement in efficiency and profitability.
The surge in ROA from 2020 to 2021 can be attributed to factors such as effective asset utilization, cost control, or increased revenue generation relative to the assets employed. The noteworthy improvement in 2022 further strengthens this trend, indicating that the company has been successful in enhancing its operational efficiency and utilizing its assets more effectively to generate higher returns.
Overall, the consistent growth in ROA over the past five years reflects positively on Super Micro Computer Inc's management of its assets and its ability to generate profits from those assets. This may indicate a well-performing company with the potential to sustain and improve its financial performance in the future. However, it is important to consider other financial metrics and qualitative factors to gain a comprehensive understanding of the company's overall financial health and performance.
Peer comparison
Jun 30, 2023