Super Micro Computer Inc (SMCI)
Return on total capital
| Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 1,271,489 | 1,328,923 | 1,588,805 | 1,570,800 | 1,233,491 | 1,157,805 | 868,538 | 720,142 | 761,142 | 699,600 | 690,295 | 518,029 | 327,034 | 200,902 | 128,180 | 122,629 | 123,947 | 111,794 | 110,285 | 100,735 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 6,301,690 | 6,379,320 | 6,238,310 | 5,876,750 | 5,469,500 | 5,093,990 | 3,076,910 | 2,165,380 | 1,972,000 | 1,768,410 | 1,818,680 | 1,625,040 | 1,425,580 | 1,273,740 | 1,186,670 | 1,132,620 | 1,096,220 | 1,053,780 | 1,064,050 | 1,072,570 |
| Return on total capital | 20.18% | 20.83% | 25.47% | 26.73% | 22.55% | 22.73% | 28.23% | 33.26% | 38.60% | 39.56% | 37.96% | 31.88% | 22.94% | 15.77% | 10.80% | 10.83% | 11.31% | 10.61% | 10.36% | 9.39% |
June 30, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,271,489K ÷ ($—K + $6,301,690K)
= 20.18%
The analysis of Super Micro Computer Inc's return on total capital (ROTC) over the period from September 2020 through June 2025 reveals a notable upward trend followed by a recent decline. Initially, the ROTC increased steadily from 9.39% as of September 30, 2020, to a peak of approximately 39.56% in March 2023. This represents a significant improvement in the company's efficiency in generating profit from its total capital base over this period.
Between September 2020 and March 2023, the company's ROTC demonstrated a consistent and substantial growth trajectory, with notable jumps particularly occurring between March 2022 (15.77%) and June 2022 (22.94%), and further accelerating to an all-time high of 37.96% in December 2022. The upward momentum continued well into 2023, reaching nearly 40% in the first quarter of that year, indicating enhanced operational efficiency and effective utilization of capital resources.
However, post-March 2023, the ROTC began to decline, settling at 38.60% in June 2023, and further decreasing to 33.26% by September 2023. This downward trend continued through December 2023 and into the first half of 2024, with values around 28.23%, then gradually declining to approximately 20.83% by March 2025. Such declines suggest a reduction in the company's ability to generate profits from its accumulated capital, potentially due to shifts in operational performance, market conditions, or other financial factors.
Overall, the historic pattern indicates a period of rapid growth and impressive efficiency in utilizing total capital, culminating in a peak in early 2023. The subsequent decline suggests a possible normalization or challenge in maintaining earlier levels of capital efficiency moving into 2024 and 2025.
Peer comparison
Jun 30, 2025