Super Micro Computer Inc. (NASDAQ:SMCI)

Total Asset Turnover

The reported total asset turnover ratio exhibited a general fluctuation over the analyzed period, starting at 1.74 in mid-2020, slightly declining in 2021 and 2022, then peaking notably at 1.94 in 2023 before decreasing again to 1.53 in 2024 and marginally rising to 1.57 in 2025. The adjusted total asset turnover followed a similar pattern, with its highest value reaching 2.05 in 2023. This suggests variability in the efficiency with which assets are used to generate revenue, with a peak performance observed in 2023.

Current Ratio

Both reported and adjusted current ratios show a significant upward trend, moving from moderate liquidity positions of 2.25 (reported) and 2.7 (adjusted) in 2020 to significantly higher values of 3.81 and 4.17 in 2024, and further increasing to 5.25 (reported) and 6.26 (adjusted) in 2025. This indicates a strengthening liquidity position over time, with greater short-term asset coverage of current liabilities especially pronounced in the last two years.

Debt to Equity and Debt to Capital Ratios

Debt to equity ratios (reported and adjusted) show an overall increasing trend, beginning from very low levels of 0.03 and 0.04 in 2020, rising sharply to 0.42 (reported) and 0.39 (adjusted) in 2022, then varying between 0.15 and 0.75 through 2025. Similarly, debt to capital ratios increased from 0.03-0.04 up to about 0.30 in 2022, followed by a slight decrease and then another rise toward 0.43-0.44 by 2025. These patterns suggest a growing leverage position, with greater reliance on debt financing over the period after 2020, although with some fluctuation.

Financial Leverage

The reported financial leverage ratio initially increased from 1.80 in 2020 to a peak of 2.25 in 2022, decreased to 1.81 in 2024, and rose again to 2.22 in 2025. Adjusted leverage also follows a similar trajectory but remains slightly lower in magnitude. This indicates variable but generally elevated leverage levels, pointing to changes in capital structure and funding sources.

Net Profit Margin

The net profit margin has shown a pronounced improvement from 2.52% reported in 2020 to a peak at 8.98% in 2023 before declining to 7.69% in 2024 and further to 4.77% in 2025. The adjusted net profit margin follows a similar trend, peaking at 8.60% in 2023 and declining subsequently. This reflects increased profitability until 2023, followed by a reduction in profitability margins in the most recent years.

Return on Equity (ROE)

ROE exhibited a robust growth trend with reported values rising from 7.91% in 2020 to a high of 32.45% in 2023, then decreasing to 21.28% in 2024 and 16.64% in 2025. Adjusted ROE mirrors this trend but at somewhat lower levels, peaking at 29.06% in 2023. This progression highlights strong returns to shareholders during the middle period, with a subsequent decline in the latter years.

Return on Assets (ROA)

ROA raised steadily from 4.39% in 2020 to 17.42% in 2023, followed by a decrease to 11.73% in 2024 and 7.48% in 2025 (reported), consistent with adjusted figures. This indicates increasing efficiency in asset utilization to generate profit up to 2023 before a drop in asset profitability in the last two years.

The analysis of the financial data over the six-year period reveals several significant trends and variations in sales, assets, and efficiency metrics.

Net Sales

Net sales demonstrate a consistent upward trajectory from US$ 3.34 billion in 2020 to an estimated US$ 21.97 billion in 2025. There is notable acceleration in growth particularly from 2023 onwards, where sales more than double each year, signaling strong market demand or expanded operational capacity.

Total Assets

Total assets have also increased markedly over the period, starting at approximately US$ 1.92 billion in 2020 and reaching an anticipated US$ 14.02 billion by 2025. Asset growth is especially pronounced after 2023, mirroring the surge in net sales. This suggests significant investment in capacity expansion, fixed assets, or acquisitions to support higher sales volumes.

Reported Total Asset Turnover

The reported total asset turnover, a measure of efficiency indicating how effectively assets generate sales, exhibits moderate fluctuation. It begins at 1.74 in 2020, dips slightly in 2021 and 2022, rises sharply to 1.94 in 2023, then decreases to around 1.53 and 1.57 in the following two years. Despite growth in sales and assets, the turnover ratio's volatility indicates varying degrees of asset utilization efficiency.

Adjusted Net Sales and Adjusted Total Assets

The adjusted figures for net sales and total assets closely track the unadjusted data, confirming the consistency of the underlying financial trends. Adjusted net sales increase from roughly US$ 3.34 billion in 2020 to about US$ 22.29 billion in 2025, while adjusted total assets rise from US$ 1.87 billion to an estimated US$ 13.41 billion.

Adjusted Total Asset Turnover

The adjusted total asset turnover ratio follows a similar pattern to the reported figures, starting at 1.79 in 2020, declining modestly through 2021 and 2022, peaking at 2.05 in 2023, and then dropping to the 1.6–1.66 range in the last two years. The peak in 2023 indicates the highest operational efficiency in asset utilization during the period under review.

In summary, the data reflects substantial sales and asset growth, particularly in the latter years. The total asset turnover ratios suggest that despite increasing scale, efficiency in asset employment has varied, peaking notably in 2023 but softening afterward. The overall trend indicates a phase of rapid expansion supported by asset acquisition, alongside fluctuating operational efficiency.

The data reveals a consistent upward trajectory in both current assets and current liabilities over the examined periods, with current assets displaying a significantly sharper increase, particularly starting from June 30, 2023.

Current Assets

Current assets show steady growth from 1,592,761 thousand US dollars in June 2020 to 3,179,426 thousand US dollars in June 2023. Notably, there is a marked acceleration thereafter, with current assets reaching 8,931,960 thousand US dollars in June 2024 and further climbing to 12,301,654 thousand US dollars by June 2025.

Current Liabilities

Current liabilities also increase throughout the periods but at a slower pace compared to assets. Starting at 707,635 thousand US dollars in June 2020, liabilities rise to 1,374,652 thousand US dollars by June 2023. Subsequent growth is observed with liabilities reaching 2,345,721 thousand US dollars in June 2024 and remaining relatively stable at 2,344,792 thousand US dollars through June 2025.

Reported Current Ratio

The reported current ratio fluctuates initially, starting at 2.25 in June 2020, decreasing to 1.91 by June 2022, then improving to 2.31 in June 2023. A substantial increase occurs in the final two periods, with ratios of 3.81 in June 2024 and 5.25 in June 2025, indicating enhanced liquidity.

Adjusted Current Assets and Liabilities

Adjusted current assets closely mirror the reported figures but are marginally higher, reflecting adjustments made for more precise evaluations. Similarly, adjusted current liabilities are consistently lower than reported liabilities, suggesting the exclusion of certain obligations in the adjustment process.

Adjusted Current Ratio

Adjusted current ratios follow a similar trend to the reported ratios but are consistently higher, indicating a more favorable liquidity position when adjustments are considered. The adjusted ratio starts at 2.7 in June 2020, dips to 2.08 by June 2022, then rises to 2.58 in June 2023, before sharply increasing to 4.17 in June 2024 and peaking at 6.26 in June 2025.

Overall, the financial data suggests a strengthening liquidity position over time, underscored by significant growth in current assets outpacing liabilities, particularly from June 2023 onward. The divergence between reported and adjusted figures highlights the impact of accounting adjustments on perceived financial health, with adjusted ratios presenting a more robust liquidity scenario. The improvements in current ratios imply enhanced short-term financial stability and a potentially greater capacity to meet current obligations.

The financial data reveals significant fluctuations and notably increasing trends in both debt and equity levels over the examined periods.

Total Debt

There is a marked increase in total debt from 29.4 million USD in 2020 to 4.76 billion USD in 2025. The debt grew sharply between 2021 and 2022, reaching nearly 597 million USD, then decreased in 2023 to approximately 290 million USD before escalating substantially in 2024 and 2025.

Total Stockholders’ Equity

Equity consistently increased from about 1.07 billion USD in 2020 to 6.3 billion USD in 2025. Growth accelerated notably starting in 2023, with equity nearly tripling between 2023 and 2024, suggesting strong capital accumulation or retained earnings over this period.

Reported Debt to Equity Ratio

This ratio shows considerable variation, moving from a low of 0.03 in 2020 to a peak of 0.42 in 2022, declining to 0.15 in 2023, and then rising again to 0.75 in 2025. These fluctuations imply changing leverage dynamics and varying reliance on debt financing relative to equity.

Adjusted Total Debt

Adjusted debt figures mirror the trends in total debt, starting at approximately 53.8 million USD in 2020, peaking near 620.6 million USD in 2022, dipping in 2023, and surging sharply to over 5.05 billion USD by 2025. This adjustment likely considers additional liabilities or debt-equivalent obligations not captured in reported debt, confirming the increasing leverage trend.

Adjusted Total Stockholders’ Equity

Adjusted equity follows a consistent upward trajectory, growing from around 1.23 billion USD in 2020 to approximately 6.44 billion USD in 2025. This steady increase concords with the total equity trend, reinforcing the notion of financial strengthening from an equity standpoint over time.

Adjusted Debt to Equity Ratio

The adjusted ratio trends are consistent with the reported debt to equity ratio, rising from 0.04 to 0.79 over the six years. The ratio peaks in 2022 and again escalates sharply from 2023 to 2025, indicating an increasing proportionate use of debt when considering adjusted measures.

Overall, the data illustrates a company that is significantly increasing its financial leverage, particularly after 2023, while also expanding its equity base robustly. The volatility in debt ratios suggests periods of strategic shifts between debt and equity financing, with a recent trend towards higher leverage potentially to support growth or capital-intensive initiatives. The parallel growth in equity, however, reflects maintained or improved capitalization despite the rising debt levels.

The financial data reveals significant fluctuations and upward trends in the company's leverage and capital structure over the observed periods.

Total Debt

The total debt shows a pronounced increase from 29,401 thousand US dollars in 2020 to 4,757,653 thousand US dollars in 2025. Notably, there is a sharp increase in 2022 followed by a temporary decline in 2023, but the upward trend resumes strongly in the subsequent years, reaching a peak in 2025.

Total Capital

Total capital also exhibits consistent growth from 1,094,941 thousand US dollars in 2020 to 11,059,346 thousand US dollars in 2025. The growth is particularly strong from 2023 onwards, indicating increasing capitalization alongside rising debt levels.

Reported Debt to Capital Ratio

This ratio reflects the proportion of debt relative to total capital. It fluctuates initially, rising from 0.03 in 2020 to 0.30 in 2022, then decreases to 0.13 in 2023 before climbing again to 0.43 in 2025. The trend indicates a varying but generally increasing reliance on debt financing over the period.

Adjusted Total Debt

Adjusted total debt figures follow a pattern similar to reported total debt, increasing from 53,813 thousand US dollars in 2020 to 5,059,210 thousand US dollars in 2025. The adjusted values are consistently higher than reported debt, implying the inclusion of additional liabilities or reclassifications in the adjusted measure.

Adjusted Total Capital

Adjusted total capital also rises steadily from 1,285,356 thousand US dollars in 2020 to 11,502,001 thousand US dollars in 2025. These values are higher than the reported total capital, consistent with adjustments for additional financial components.

Adjusted Debt to Capital Ratio

The adjusted debt to capital ratio closely mirrors the reported ratio in trend and magnitude, starting at 0.04 in 2020, peaking at 0.29 in 2024, and reaching 0.44 by 2025. This ratio confirms the increasing leverage pattern observed in the reported figures.

Overall, the financial data indicates that both reported and adjusted debt and capital have grown markedly over the five-year span, with debt increasing at a notably rapid pace relative to capital, particularly in the later years. This results in heightened leverage, as evidenced by the rising debt-to-capital ratios. The fluctuations in these ratios suggest periods of capital restructuring or changes in debt management strategy, but the prevailing direction points towards greater indebtedness relative to the company's capital base.

The financial data exhibits a significant upward trajectory in the total assets of the entity over the analyzed periods. Starting from approximately $1.92 billion in mid-2020, total assets have substantially increased, reaching nearly $14 billion by mid-2025. This substantial growth indicates aggressive asset accumulation or expansion activities over the five-year timeframe.

Similarly, stockholders’ equity indicates a consistent increase, moving from about $1.07 billion in 2020 to over $6.3 billion in 2025. Notably, the growth rate in equity accelerates markedly after 2023, with equity nearly tripling by 2024 and continuing to rise in 2025. This suggests enhanced capitalization or retained earnings contributing to the equity base over time.

When examining the leverage ratios, reported financial leverage fluctuates moderately but remains within the range of approximately 1.8 to 2.25. The ratio peaks in 2022 at 2.25, then declines to a low of 1.81 in 2024 before increasing again to 2.22 in 2025. This pattern indicates that the company's liability structure relative to equity experiences periodic adjustments but generally maintains a moderately leveraged stance.

The adjusted total assets and adjusted total stockholders’ equity follow trends similar to their reported counterparts, but with slightly different magnitudes. Adjusted total assets grow from around $1.87 billion to $13.4 billion by 2025, reflecting a consistent expansion. Adjusted equity rises from approximately $1.23 billion in 2020 to $6.44 billion in 2025, confirming increased net worth after adjustments.

Adjusted financial leverage demonstrates a gradual increase over time, beginning around 1.52 in 2020 and rising to 2.08 by 2025. The ratio climbs steadily until 2022, dips somewhat by 2023, then ascends again thereafter. This trend suggests a cautious but upward movement in leverage after considering adjustments, implying an increasing reliance on liabilities relative to equity in adjusted terms.

Overall, the data indicates robust growth in the company’s asset base and equity, with leverage maintained at moderate to slightly elevated levels throughout the period. The fluctuations in financial leverage ratios suggest periodic rebalancing of capital structure, yet the general expansion of both assets and equity reflects a growth-oriented financial strategy.

Net Income

The net income shows a generally strong upward trend from 2020 to 2024, increasing from approximately 84.3 million USD to over 1.15 billion USD. However, in 2025, there is a noticeable decline to around 1.05 billion USD, suggesting a potential slowdown in profitability after several years of growth.

Net Sales

Net sales exhibit significant growth over the period analyzed, rising from about 3.34 billion USD in 2020 to over 21.97 billion USD in 2025. This indicates a robust expansion in the company’s revenue-generating capacity, with particularly sharp increases between 2023 and 2025.

Reported Net Profit Margin

The reported net profit margin improves from 2.52% in 2020 to a peak of 8.98% in 2023, indicating increasing operational efficiency and profitability relative to sales. Following this peak, the margin declines to 7.69% in 2024 and further to 4.77% in 2025, reflecting a decrease in profit relative to revenue despite high sales volumes.

Adjusted Net Income

Adjusted net income, which likely excludes certain one-time or non-recurring items, follows a similar pattern to net income. It rises sharply from approximately 67.8 million USD in 2020 to over 1.09 billion USD in 2024. Unlike reported net income, adjusted net income slightly increases in 2025 to about 1.15 billion USD, suggesting that adjustments have a mitigating impact on the reported decline seen in that year.

Adjusted Net Sales

Adjusted net sales also demonstrate substantial growth, increasing consistently from about 3.34 billion USD in 2020 to roughly 22.29 billion USD in 2025. The steady growth mirrors that of reported net sales, confirming the company’s expanding scale of operations.

Adjusted Net Profit Margin

The adjusted net profit margin rises from 2.03% in 2020 to a high of 8.60% in 2023, closely tracking the reported margin’s trend. Subsequently, it declines to 7.28% in 2024 and further to 5.15% in 2025, suggesting reduced profitability efficiency after 2023 but still higher than the early years of the period analyzed.

Overall Observations

The data indicates a period of rapid growth in both sales and income through 2023 and 2024, followed by a slight deterioration in profit margins and net income growth in 2025. The divergence between reported and adjusted figures in 2025 points toward the presence of accounting adjustments that affect reported profitability metrics. The trend underscores a potential challenge in sustaining the peak profitability margins achieved in 2023.

The analysis reveals significant growth in key financial metrics for the company over the reported periods. Net income shows a notable upward trend, increasing from $84.3 million in 2020 to a peak of approximately $1.15 billion in 2024, followed by a slight decline to about $1.05 billion in 2025. This reflects a strong expansion in profitability, especially pronounced between 2021 and 2024.

Total stockholders’ equity exhibits a substantial escalation, rising from approximately $1.07 billion in 2020 to over $6.3 billion in 2025. This increase is indicative of considerable capital accumulation, possibly through retained earnings, additional equity investments, or asset revaluation, with equity over four times higher by 2025 compared to 2020.

Return on Equity (ROE), based on reported figures, improves markedly from 7.91% in 2020 to a peak of 32.45% in 2023, before decreasing to 16.64% in 2025. This pattern suggests enhanced efficiency in generating profit from shareholders’ equity up to 2023, with some moderation in the last two years.

When adjusted metrics are considered, adjusted net income mirrors the reported net income trend, rising significantly from $67.8 million in 2020 to over $1.14 billion in 2025. Adjusted total stockholders’ equity follows a similar growth trajectory, increasing from $1.23 billion in 2020 to approximately $6.44 billion in 2025. These adjusted figures provide a more refined perspective on profitability and equity.

Adjusted ROE increases from 5.51% in 2020 to a high of 29.06% in 2023, then declines to 17.82% in 2025. This aligns with the trend observed in reported ROE, confirming enhanced profitability relative to equity until 2023, followed by a downturn.

Net Income

Displays a strong upward trajectory, with a rapid increase particularly evident from 2021 to 2024, indicating improved earnings capacity.

Total Stockholders’ Equity

More than quintuples over the period, signifying solid capital base growth and possibly supporting expansion activities.

Return on Equity (ROE)

Shows substantial improvement until 2023, reflecting efficient equity utilization, before receding in the final years analyzed.

Adjusted Metrics

Confirm the positive trends observed in the reported figures, with adjusted net income and equity growing substantially and adjusted ROE following a similar peak-and-decline pattern.

Overall, the data demonstrates a period of considerable financial growth, marked by increased profitability and equity expansion, with peak return on equity ratios in the 2023 timeframe and a moderation afterwards. This suggests a potential phase of consolidation or changing operational dynamics after rapid growth.

Net income

The net income shows a consistent upward trend from 2020 through 2024, increasing from $84,308 thousand in 2020 to a peak of $1,152,666 thousand in 2024. In 2025, there is a slight decline to $1,048,854 thousand, but the overall figures remain significantly higher than earlier years.

Total assets

Total assets have grown substantially over the period, starting at $1,918,646 thousand in 2020 and reaching $14,018,429 thousand by 2025. The increase is particularly steep from 2023 onwards, indicating significant asset accumulation in the later years.

Reported Return on Assets (ROA)

The reported ROA shows improvement from 4.39% in 2020 to a peak of 17.42% in 2023, reflecting enhanced profitability relative to assets. However, this ratio declines over the following two years to 11.73% in 2024 and 7.48% in 2025, suggesting diminishing efficiency in asset utilization after 2023.

Adjusted net income

Adjusted net income follows a similar trajectory to net income, increasing from $67,839 thousand in 2020 to $1,099,109 thousand in 2024. In 2025, it continues to rise slightly to $1,148,287 thousand. This adjustment indicates consistent profitability growth, with a minor divergence from reported net income in the final year.

Adjusted total assets

Adjusted total assets increase markedly from $1,868,334 thousand in 2020 to $13,411,013 thousand in 2025. The trend parallels the reported total assets, confirming substantial asset growth, especially after 2023.

Adjusted Return on Assets (ROA)

The adjusted ROA improves from 3.63% in 2020 to a high of 17.61% in 2023, mirroring the reported ROA pattern. Subsequently, it declines to 11.62% in 2024 and further to 8.56% in 2025, indicating a reduction in asset efficiency despite continued asset growth and rising adjusted net income.