Super Micro Computer Inc (SMCI)
Return on total capital
| Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,233,490 | 1,265,690 | 761,142 | 302,696 | 123,947 |
| Long-term debt | US$ in thousands | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 5,417,210 | 5,469,500 | 1,972,000 | 1,425,580 | 1,096,220 |
| Return on total capital | 22.77% | 23.14% | 38.60% | 21.23% | 11.31% |
June 30, 2025 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,233,490K ÷ ($—K + $5,417,210K)
= 22.77%
The analysis of Super Micro Computer Inc’s return on total capital (ROTC) over the period from June 30, 2021, to June 30, 2025, reveals notable fluctuations and trends.
In the fiscal year ending June 30, 2021, the company achieved an ROTC of 11.31%, which indicates a relatively modest level of efficiency in utilizing its total capital to generate operating profits. This figure increased substantially the following year, reaching 21.23% by June 30, 2022, suggesting significant improvements in operational efficiency and capital management.
The upward trajectory continued into June 30, 2023, with the ROTC reaching 38.60%. This sharp rise reflects a period of heightened profitability and effective use of total capital, potentially driven by increased sales, improved margins, or strategic operational efficiencies.
However, for the subsequent years, the ROTC experienced a decline: it decreased to 23.14% in June 2024 and slightly declined again to 22.77% in June 2025. Despite these decreases, the values remained significantly higher than the 2021 baseline, indicating sustained improved efficiency relative to the initial period, although the decline suggests some moderation in profit generation relative to capital employed.
Overall, the pattern demonstrates a significant growth phase from 2021 through 2023, followed by a stabilization period, where the company maintains higher-than-initial levels of return on total capital, but with signs of slight regression in profitability metrics relative to total capital employed in the most recent years.
Peer comparison
Jun 30, 2025