Super Micro Computer Inc (SMCI)

Return on assets (ROA)

		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
Total assets	US$ in thousands	10,738,500	9,728,350	10,851,400	9,943,240	8,862,780	5,405,000	4,095,960	3,674,730	3,192,600	3,074,940	3,301,280	3,205,080	3,071,180	2,676,600	2,426,690	2,241,960	1,998,840	1,894,070	1,816,690	1,918,650
ROA		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%	4.39%

March 31, 2025 calculation

ROA = Net income (ttm) ÷ Total assets
= $1,150,944K ÷ $10,738,500K
= 10.72%

The observed trends in Super Micro Computer Inc.'s return on assets (ROA) from mid-2020 through early 2025 depict a pattern of initial gradual increases, followed by significant growth phases, and subsequent stabilization and moderate fluctuations.

Between June 2020 and March 2021, the company’s ROA remained relatively stable, fluctuating modestly between approximately 4.39% and 4.99%, indicative of consistent but moderate profitability relative to its total assets during this period. Toward the end of 2021, the ROA experienced a slight uplift, reaching approximately 4.67% in December 2021, consistent with prior levels.

A notable inflection point occurred in early 2022, with the ROA escalating sharply from 5.97% in March 2022 to a peak of 18.81% at the end of 2022. This rapid increase suggests a significant improvement in asset utilization efficiency or profitability, possibly driven by favorable market conditions, operational enhancements, or strategic initiatives.

Throughout 2023, the ROA maintained elevated levels, with values remaining between approximately 11.84% and 18.39%. The peak at the end of 2022 and early 2023 signifies sustained profitability gains. However, beginning in mid-2023, there is a noticeable decline in ROA, dropping to 17.42% in June 2023 and further down to 11.84% by March 2024. This decline could reflect tapering profit margins, increased asset base, or other operational factors impacting asset efficiency.

In late 2024, the ROA exhibits signs of recovery, increasing again to 14.85% by December 2024 before declining somewhat to 10.72% in March 2025. The oscillating pattern indicates ongoing variability in the company’s ability to generate returns on its total assets.

Overall, the significant growth observed in 2022 suggests periods of enhanced operational performance or strategic success, while the subsequent volatility indicates dynamic shifts possibly influenced by market conditions, industry cycles, or internal operational changes. The recent stabilization and slight decline in late 2024 and early 2025 imply a return to more moderate profitability levels, emphasizing the importance of continued operational efficiency to sustain higher ROA values.