Super Micro Computer Inc (SMCI)

Return on equity (ROE)

		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 stockholders’ equity	US$ in thousands	1,972,000	1,425,580	1,096,220	1,065,540	941,015
ROE		32.45%	20.00%	10.20%	7.91%	7.64%

June 30, 2023 calculation

ROE = Net income ÷ Total stockholders’ equity
= $639,998K ÷ $1,972,000K
= 32.45%

Super Micro Computer Inc's return on equity (ROE) has shown a significant improvement over the past five years, increasing from 7.64% in 2019 to 32.45% in 2023. This indicates that the company has been generating a higher level of profitability relative to shareholders' equity. The steady upward trend in ROE suggests that the company has been effectively utilizing its equity to generate profits, indicating efficient management of the business. This improvement may be attributed to factors such as higher net income, better cost management, or increased leverage. Overall, the increasing ROE reflects positively on Super Micro Computer Inc's financial performance and may indicate a stronger position for the company in terms of generating returns for its shareholders.