Stock Analysis on Net

Super Micro Computer Inc. (NASDAQ:SMCI)

Return on Capital (ROC)

Microsoft Excel

Return on capital (ROC) is after tax rate of return on net business assets. ROIC is unaffected by changes in interest rates or company debt and equity structure. It measures business productivity performance.


Return on Invested Capital (ROIC)

Super Micro Computer Inc., ROIC calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,116,783 627,683 314,116 103,035 70,352 123,581
Invested capital2 7,676,769 2,437,425 2,222,919 1,282,041 1,239,197 1,150,419
Performance Ratio
ROIC3 14.55% 25.75% 14.13% 8.04% 5.68% 10.74%
Benchmarks
ROIC, Competitors4
Apple Inc. 183.43% 156.53% 217.85% 214.07% 161.85% 105.51%
Arista Networks Inc. 57.91% 43.29% 38.80% 53.84% 36.23%
Cisco Systems Inc. 13.27% 21.42% 21.11% 20.34% 24.12% 18.12%
Dell Technologies Inc. 5.29% 9.72% 14.58% 9.51% 6.21%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 NOPAT. See details »

2 Invested capital. See details »

3 2024 Calculation
ROIC = 100 × NOPAT ÷ Invested capital
= 100 × 1,116,783 ÷ 7,676,769 = 14.55%

4 Click competitor name to see calculations.

Performance ratio Description The company
ROIC A measure of the periodic, after tax, cash-on-cash yield earned in the business. Super Micro Computer Inc. ROIC improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Decomposition of ROIC

Super Micro Computer Inc., decomposition of ROIC

Microsoft Excel
ROIC = OPM1 × TO2 × 1 – CTR3
Jun 30, 2024 14.55% = 8.96% × 1.97 × 82.52%
Jun 30, 2023 25.75% = 11.58% × 2.95 × 75.32%
Jun 30, 2022 14.13% = 7.18% × 2.35 × 83.73%
Jun 30, 2021 8.04% = 3.35% × 2.77 × 86.56%
Jun 30, 2020 5.68% = 2.63% × 2.69 × 80.22%
Jun 30, 2019 10.74% = 4.41% × 3.09 × 78.84%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 Operating profit margin (OPM). See calculations »

2 Turnover of capital (TO). See calculations »

3 Effective cash tax rate (CTR). See calculations »

The primary reason for the decrease in return on invested capital (ROIC) over 2024 year is the decrease in efficiency measured by turnover of capital (TO) ratio.


Operating Profit Margin (OPM)

Super Micro Computer Inc., OPM calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,116,783 627,683 314,116 103,035 70,352 123,581
Add: Cash operating taxes2 236,509 205,704 61,030 15,997 17,343 33,161
Net operating profit before taxes (NOPBT) 1,353,291 833,387 375,146 119,032 87,695 156,742
 
Net sales 14,989,251 7,123,482 5,196,099 3,557,422 3,339,281 3,500,360
Add: Increase (decrease) in deferred revenue 111,928 70,587 31,544 (1,452) 350 55,139
Adjusted net sales 15,101,179 7,194,069 5,227,643 3,555,970 3,339,631 3,555,499
Profitability Ratio
OPM3 8.96% 11.58% 7.18% 3.35% 2.63% 4.41%
Benchmarks
OPM, Competitors4
Apple Inc. 31.84% 29.83% 30.44% 30.11% 24.73% 24.69%
Arista Networks Inc. 51.15% 43.35% 37.17% 37.38% 32.69%
Cisco Systems Inc. 26.47% 29.22% 29.29% 28.52% 30.47% 25.46%
Dell Technologies Inc. 4.44% 7.05% 9.11% 9.27% 6.67%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
OPM = 100 × NOPBT ÷ Adjusted net sales
= 100 × 1,353,291 ÷ 15,101,179 = 8.96%

4 Click competitor name to see calculations.

Profitability ratio Description The company
OPM The operating profit margin (OPM) is the ratio of pretax economic earnings, or NOPBT, to sales. Super Micro Computer Inc. OPM improved from 2022 to 2023 but then slightly deteriorated from 2023 to 2024 not reaching 2022 level.

Turnover of Capital (TO)

Super Micro Computer Inc., TO calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Net sales 14,989,251 7,123,482 5,196,099 3,557,422 3,339,281 3,500,360
Add: Increase (decrease) in deferred revenue 111,928 70,587 31,544 (1,452) 350 55,139
Adjusted net sales 15,101,179 7,194,069 5,227,643 3,555,970 3,339,631 3,555,499
 
Invested capital1 7,676,769 2,437,425 2,222,919 1,282,041 1,239,197 1,150,419
Efficiency Ratio
TO2 1.97 2.95 2.35 2.77 2.69 3.09
Benchmarks
TO, Competitors3
Apple Inc. 7.82 6.36 8.46 8.61 7.63 5.12
Arista Networks Inc. 1.41 1.32 1.45 1.71 1.28
Cisco Systems Inc. 0.62 1.01 0.89 0.90 0.96 0.95
Dell Technologies Inc. 1.63 1.81 1.91 1.16 1.18

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 Invested capital. See details »

2 2024 Calculation
TO = Adjusted net sales ÷ Invested capital
= 15,101,179 ÷ 7,676,769 = 1.97

3 Click competitor name to see calculations.

Efficiency ratio Description The company
TO The turnover of capital (TO) is the ratio of sales to invested capital. Capital turnover is a function of the efficiency of working capital management and of net fixed assets. Super Micro Computer Inc. TO improved from 2022 to 2023 but then deteriorated significantly from 2023 to 2024.

Effective Cash Tax Rate (CTR)

Super Micro Computer Inc., CTR calculation, comparison to benchmarks

Microsoft Excel
Jun 30, 2024 Jun 30, 2023 Jun 30, 2022 Jun 30, 2021 Jun 30, 2020 Jun 30, 2019
Selected Financial Data (US$ in thousands)
Net operating profit after taxes (NOPAT)1 1,116,783 627,683 314,116 103,035 70,352 123,581
Add: Cash operating taxes2 236,509 205,704 61,030 15,997 17,343 33,161
Net operating profit before taxes (NOPBT) 1,353,291 833,387 375,146 119,032 87,695 156,742
Tax Rate
CTR3 17.48% 24.68% 16.27% 13.44% 19.78% 21.16%
Benchmarks
CTR, Competitors4
Apple Inc. 26.37% 17.45% 15.42% 17.39% 14.22% 16.57%
Arista Networks Inc. 19.83% 24.62% 28.07% 15.62% 13.57%
Cisco Systems Inc. 18.88% 27.06% 19.15% 20.48% 17.40% 24.92%
Dell Technologies Inc. 26.88% 23.81% 16.21% 11.88% 21.07%

Based on: 10-K (reporting date: 2024-06-30), 10-K (reporting date: 2023-06-30), 10-K (reporting date: 2022-06-30), 10-K (reporting date: 2021-06-30), 10-K (reporting date: 2020-06-30), 10-K (reporting date: 2019-06-30).

1 NOPAT. See details »

2 Cash operating taxes. See details »

3 2024 Calculation
CTR = 100 × Cash operating taxes ÷ NOPBT
= 100 × 236,509 ÷ 1,353,291 = 17.48%

4 Click competitor name to see calculations.

Tax rate Description The company
CTR Effective cash tax rate on operating income. Super Micro Computer Inc. CTR increased from 2022 to 2023 but then slightly decreased from 2023 to 2024 not reaching 2022 level.