Super Micro Computer Inc (SMCI)

Return on equity (ROE)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Net income	US$ in thousands	1,048,850	1,208,150	639,998	285,163	111,865
Total stockholders’ equity	US$ in thousands	6,301,690	5,469,500	1,972,000	1,425,580	1,096,220
ROE		16.64%	22.09%	32.45%	20.00%	10.20%

June 30, 2025 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,048,850K ÷ $6,301,690K
= 16.64%

The return on equity (ROE) of Super Micro Computer Inc exhibits significant fluctuations over the analyzed period from June 30, 2021, to June 30, 2025. In the fiscal year ending June 30, 2021, the company's ROE was 10.20%, indicating a relatively modest level of profitability relative to shareholders' equity. By June 30, 2022, ROE more than doubled to 20.00%, suggesting a notable improvement in profitability or efficient use of equity capital during that period.

The substantial increase continued into the year ending June 30, 2023, when ROE reached 32.45%, reflecting a strong period of profitability and effective management in generating returns for shareholders. This peak suggests that the company experienced either increased net income, improved asset utilization, or both during this timeframe.

However, the subsequent fiscal year ending June 30, 2024, saw a decline in ROE to 22.09%. While still considerably higher than the 2021 figures, this reduction indicates a possible decrease in profitability or a change in the capital structure or efficiency. The downward trend persisted into June 30, 2025, with ROE slightly decreasing again to 21.28%, maintaining a level significantly above the 2021 baseline but reflecting a moderation from the peak observed in 2023.

Overall, the company's ROE trajectory demonstrates a period of rapid growth and profitability acceleration culminating in 2023, followed by a stabilization at a high level. This pattern suggests that Super Micro Computer Inc experienced a highly successful phase of value creation, potentially driven by operational improvements, market conditions, or strategic initiatives, although recent years indicate a settling into a steadier, albeit still elevated, profitability stance.