Super Micro Computer Inc (SMCI)
Return on total capital
| 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 | Jun 30, 2020 | ||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Earnings before interest and tax (EBIT) (ttm) | US$ in thousands | 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 | 104,743 |
| Long-term debt | US$ in thousands | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — | — |
| Total stockholders’ equity | US$ in thousands | 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 | 1,065,540 |
| Return on total capital | 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% | 9.83% |
March 31, 2025 calculation
Return on total capital = EBIT (ttm) ÷ (Long-term debt + Total stockholders’ equity)
= $1,328,923K ÷ ($—K + $6,379,320K)
= 20.83%
The return on total capital (ROTC) of Super Micro Computer Inc. exhibits notable fluctuations over the analyzed period, reflecting shifts in the company's operational efficiency and capital utilization. Starting at 9.83% on June 30, 2020, the ROTC experienced a modest decline through September 2020, reaching 9.39%. This was followed by a gradual recovery, surpassing 10% by December 31, 2020, and continuing an upward trend into March 2021 at 10.61%.
A steady increase persisted through 2021, with the ROTC reaching approximately 11.31% by June 2021. During the latter part of 2021, the ratio remained relatively stable around 10.80% to 10.83%. However, a significant acceleration in performance is observed starting in March 2022, when the ROTC rose sharply to 15.77%, marking an improvement in profitability and capital efficiency.
The upward trajectory accelerated further through 2022 and into 2023, peaking at 39.56% on March 31, 2023. This substantial increase indicates a period of enhanced operational efficiency, possibly driven by improved cost management, higher-margin sales, or strategic capital deployment. Subsequently, the ratio remained elevated but exhibited some decline, reaching 38.60% by June 2023 and 33.26% in September 2023.
By the end of 2023, the ROTC declined to 28.23%, suggesting a moderation of prior rapid gains. The first quarter of 2024 saw a further decrease to 22.73%, with minor fluctuations continuing into June 2024 and September 2024, where it was recorded at 22.55% and 26.73%, respectively. The most recent data point for December 2024 shows a slight decrease to 25.47%.
Looking into early 2025, the ROTC is projected at approximately 20.83%, indicating a general trend of normalization after the peak growth period. Overall, the company's return on total capital displayed a significant upward trend from late 2021 through early 2023, followed by a stabilization and slight decline, which may reflect changes in operational conditions or market environment.
Peer comparison
Mar 31, 2025