Super Micro Computer Inc (SMCI)
Return on total capital
| Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) | US$ in thousands | 1,210,770 | 761,155 | 344,452 | 121,286 | 89,466 |
| Long-term debt | US$ in thousands | 1,697,720 | 120,179 | 147,618 | 34,700 | 5,697 |
| Total stockholders’ equity | US$ in thousands | 5,417,210 | 1,972,000 | 1,425,580 | 1,096,220 | 1,065,540 |
| Return on total capital | 17.02% | 36.38% | 21.90% | 10.72% | 8.35% |
June 30, 2024 calculation
Return on total capital = EBIT ÷ (Long-term debt + Total stockholders’ equity)
= $1,210,770K ÷ ($1,697,720K + $5,417,210K)
= 17.02%
Super Micro Computer Inc's return on total capital has shown a notable improvement over the past five years. As of June 30, 2020, the return on total capital was 8.35%, indicating the company generated $8.35 in profit for every $100 of total capital invested. This metric increased to 10.72% by June 30, 2021, signifying a positive trend in generating returns for capital providers.
The return on total capital experienced a significant surge to 21.90% by June 30, 2022, showcasing a remarkable improvement in the company's efficiency in utilizing its total capital to generate profits. This substantial increase was followed by another impressive growth to 36.38% by June 30, 2023, indicating a continued enhancement in the company's capital allocation strategies, resulting in higher returns for investors.
However, the return on total capital slightly decreased to 17.02% by June 30, 2024. Despite this dip, the company has demonstrated a strong ability to generate returns on the total capital employed, indicating efficiency and effectiveness in deploying resources to create value for shareholders.
Overall, Super Micro Computer Inc's return on total capital has shown a positive trajectory, with a notable peak in 2023, reflecting the company's efforts in optimizing its capital structure and operations to enhance profitability and create sustainable value for its stakeholders.
Peer comparison
Jun 30, 2024