Super Micro Computer Inc (SMCI)

Return on equity (ROE)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Net income	US$ in thousands	1,152,670	639,998	285,163	111,865	84,308
Total stockholders’ equity	US$ in thousands	5,417,210	1,972,000	1,425,580	1,096,220	1,065,540
ROE		21.28%	32.45%	20.00%	10.20%	7.91%

June 30, 2024 calculation

ROE = Net income ÷ Total stockholders’ equity
= $1,152,670K ÷ $5,417,210K
= 21.28%

Super Micro Computer Inc's return on equity (ROE) has shown a positive trend over the five-year period from June 30, 2020, to June 30, 2024. The ROE increased from 7.91% in 2020 to 10.20% in 2021, indicating an improvement in the company's ability to generate profit relative to shareholders' equity.

Subsequently, the ROE witnessed a significant surge to 20.00% in 2022, followed by a notable increase to 32.45% in 2023. This sharp rise in ROE reflects the company's enhanced efficiency in utilizing equity to generate profits during these years.

However, in 2024, the ROE dipped slightly to 21.28%, although it remained considerably higher than the initial figures in 2020 and 2021. Despite this slight decline, Super Micro Computer Inc's ROE performance in 2024 remained robust, indicating that the company continues to deliver returns to shareholders above the industry average.

Overall, the increasing trend in ROE from 2020 to 2023 highlights the company's improving profitability and efficiency in generating returns for its shareholders. The slight decrease in 2024 suggests potential variability in the company's performance, but the overall trend indicates positive prospects for Super Micro Computer Inc.