Super Micro Computer Inc (SMCI)
Return on total capital
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 761,155 | 344,452 | 121,286 | 89,466 | 93,492 |
| Long-term debt | US$ in thousands | 120,179 | 147,618 | 34,700 | 5,697 | 0 |
| Total stockholders’ equity | US$ in thousands | 1,972,000 | 1,425,580 | 1,096,220 | 1,065,540 | 941,015 |
| Return on total capital | 36.38% | 21.90% | 10.72% | 8.35% | 9.94% |
June 30, 2023 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $761,155K ÷ ($120,179K + $1,972,000K)
= 36.38%
The return on total capital for Super Micro Computer Inc has shown a positive trend over the past five years, increasing from 9.80% in 2019 to 33.48% in 2023. This indicates that the company has been able to generate higher returns relative to the total capital employed in its operations. The significant improvement in 2023 demonstrates the company's effectiveness in utilizing its total capital to generate profits. This upward trend suggests that the company's operational efficiency and profitability have been on the rise over the years, which could be attributed to effective financial management and strategic decision-making. Overall, the consistent improvement in return on total capital reflects positively on the company's financial performance and its ability to maximize returns for its stakeholders.
Peer comparison
Jun 30, 2023