Super Micro Computer Inc (SMCI)
Return on total capital
| 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 | Jun 30, 2020 | Mar 31, 2020 | Dec 31, 2019 | Sep 30, 2019 | Jun 30, 2019 | Mar 31, 2019 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 871,071 | 712,995 | 761,225 | 702,355 | 699,024 | 542,182 | 344,460 | 213,142 | 137,247 | 119,909 | 121,278 | 95,282 | 91,900 | 84,936 | 89,498 | 106,566 | 103,554 | 101,746 | 93,492 | 107,236 |
| Long-term debt | US$ in thousands | 99,322 | 105,389 | 120,179 | 133,235 | 142,273 | — | 147,618 | 144,423 | 139,032 | 45,134 | 34,700 | 27,867 | 20,577 | 11,980 | 5,697 | — | — | — | 0 | — |
| Total stockholders’ equity | US$ in thousands | 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 | 1,065,540 | 1,038,230 | 1,001,390 | 971,694 | 941,015 | 912,998 |
| Return on total capital | 27.42% | 31.40% | 36.38% | 36.93% | 35.65% | 33.36% | 21.90% | 15.03% | 10.35% | 10.18% | 10.72% | 8.81% | 8.47% | 7.83% | 8.35% | 10.26% | 10.34% | 10.47% | 9.94% | 11.75% |
December 31, 2023 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $871,071K ÷ ($99,322K + $3,076,910K)
= 27.42%
Super Micro Computer Inc. has shown an improving trend in its return on total capital over the past eight quarters. The return on total capital has consistently increased from 11.56% in Q3 2022 to 30.75% in Q1 2024. This indicates that the company has been able to generate more profit relative to the total capital invested in the business over time. The recent return on total capital of 30.75% in Q1 2024 is particularly significant, showing that the company is effectively utilizing its capital to generate profits. Overall, the upward trend in return on total capital reflects positively on Super Micro Computer Inc.'s financial performance and efficiency in using its resources to generate returns for its stakeholders.
Peer comparison
Dec 31, 2023