Super Micro Computer Inc. (NASDAQ:SMCI)

Land

There is a consistent upward trend in the value of land over the periods, rising from $75,251 thousand in 2020 to $162,848 thousand in 2025. The increase is especially pronounced between 2023 and 2024, indicating a significant acquisition or revaluation during that interval.

Buildings

Building values remain stable between 2020 and 2021, then experience a sharp increase in 2022, reaching approximately $143,509 thousand. From 2022 onwards, there is a continued gradual increase, peaking at $182,466 thousand in 2025. This suggests notable investment or capital improvements in building assets, particularly around 2022.

Machinery and Equipment

Machines and equipment show steady growth from 2020, starting at $85,381 thousand and peaking in 2024 at $156,496 thousand. However, a decline is observed in 2025 with a drop to $111,331 thousand, which may indicate asset disposals, obsolescence, or reclassification.

Building and Leasehold Improvements

This category exhibits a marked increasing trend throughout the entire period, rising from $24,517 thousand in 2020 to $121,665 thousand in 2025. The most substantial growth appears between 2024 and 2025, implying intensified capital expenditures in property enhancements or leasehold upgrades.

Furniture and Fixtures

Values initially increase moderately from $21,544 thousand in 2020 to $43,282 thousand in 2022, followed by a decline in 2023 and 2025, dropping to $36,268 thousand in 2025. This pattern may reflect aging furniture, disposals, or reduced investments.

Software

Software assets remain relatively stable between 2020 and 2024, hovering around $20,000 to $24,000 thousand. However, a significant reduction occurs in 2025, with values falling to $7,117 thousand. This suggests impairments, write-offs, or reclassification of software expenses.

Construction in Progress

Construction in progress shows fluctuations, increasing sharply in 2021 to $87,438 thousand from $46,311 thousand in 2020, then sharply dropping to $303 thousand from 2022 through 2023. A moderate rise occurs in 2024 to $14,828 thousand, followed by a decline in 2025. This indicates periods of active development alternating with completion or suspension of projects.

Property, Plant, and Equipment, Gross

The gross property, plant, and equipment values grow steadily from $360,531 thousand in 2020 to a peak of $627,904 thousand in 2024, before a slight reduction to $622,733 thousand in 2025. This reflects overall capital expansion with occasional minor contractions.

Accumulated Depreciation and Amortization

Accumulated depreciation increases in magnitude (more negative) consistently from -$126,746 thousand in 2020 to -$213,896 thousand in 2024, representing ongoing depreciation of assets. A notable decrease in accumulated depreciation to -$118,245 thousand is observed in 2025, which could indicate asset disposals, revaluation, or adjustments impairing the accumulated depreciation balance.

Property, Plant, and Equipment, Net

The net property, plant, and equipment show a generally increasing trend, starting at $233,785 thousand in 2020 and rising to $504,488 thousand in 2025. Significant increases are observed between 2023 and 2024. Despite some fluctuations in gross and accumulated depreciation figures, the net asset base reflects sustained growth and investment in long-term assets.

Average Age Ratio Trend

The average age ratio shows moderate fluctuations over the observed periods. Starting at 44.43% in 2020, it declined slightly to 42.38% in 2021, then rose to a peak of 48.19% in 2023 before decreasing sharply to 25.71% in 2025. This suggests a recent reduction in the relative age of the property, plant, and equipment assets, indicating possible asset renewal or replacement activities in the most recent period.

Estimated Total Useful Life

The estimated total useful life remained fairly constant at 15 years during the period 2022 to 2024 but shows a notable decline to 11 years in 2025. This reduction implies a reassessment of asset longevity that could reflect changes in asset composition or updated management assumptions regarding asset utility.

Estimated Age

The estimated age of assets remained stable at seven years from 2022 to 2024, then decreased to three years in 2025. This sudden drop indicates significant acquisition of newer assets or retirement of older assets, contributing to the lower average asset age and supporting the observed decrease in the average age ratio in 2025.

Estimated Remaining Life

The estimated remaining life of assets experienced a slight increase from eight years in 2022 and 2023 to nine years in 2024, followed by a small decrease to eight years in 2025. The relative stability suggests that while asset age decreased sharply, the remaining useful life expectations remain generally consistent, possibly reflecting the mix of newer and older assets currently held.

Overall Insights

Collectively, the data indicates a trend towards rejuvenation of the asset base around 2025, characterized by a younger average asset age and a shorter total useful life estimate. Such changes may correspond to strategic asset replacement or investment in newer technologies. The stable remaining life estimates imply continued confidence in the service potential of the current asset pool despite the adjustments in age and total useful life assumptions.

Property, Plant, and Equipment, Gross

There is a consistent upward trend in the gross value of property, plant, and equipment from 2020 through 2024, increasing from $360,531 thousand to $627,904 thousand. However, a slight decrease is observed in 2025, where the value drops marginally to $622,733 thousand. This suggests significant investment and expansion over the years, peaking in 2024.

Accumulated Depreciation and Amortization

The accumulated depreciation and amortization steadily increased from $126,746 thousand in 2020 to a peak of $213,896 thousand in 2024, reflecting ongoing depreciation of the assets. In 2025, there is a substantial decline to $118,245 thousand, which may indicate asset write-offs, disposals, or a change in depreciation policy.

Land

The value of land shows a gradual increase from $75,251 thousand in 2020 to $86,642 thousand in 2023, followed by a sharp rise to $150,137 thousand in 2024 and further to $162,848 thousand in 2025. This reflects acquisition or revaluation of land assets, significantly affecting the fixed asset base.

Average Age Ratio

The average age ratio, expressed as a percentage, fluctuated in the range of approximately 42% to 48% from 2020 to 2024, peaking at 48.19% in 2023. In 2025, there is a marked decrease to 25.71%, indicating a rejuvenation of the asset base, likely due to the addition of new assets or disposal of older assets.

Property, Plant, and Equipment, Gross

The gross value exhibited a consistent upward trend from June 30, 2020, to June 30, 2024, increasing from $360,531 thousand to $627,904 thousand. However, a slight decrease to $622,733 thousand was observed in the following year ending June 30, 2025. This overall increase suggests ongoing investment in fixed assets over the period, with a peak reached in 2024.

Land

The value attributed to land increased steadily each year, starting at $75,251 thousand in 2020 and reaching $162,848 thousand by 2025. Notably, the increase was more pronounced in the last two years, nearly doubling from $86,642 thousand in 2023 to $150,137 thousand in 2024, and then rising further in 2025. This indicates a significant acquisition or revaluation of land assets toward the end of the period.

Depreciation Expense

Data for depreciation expense is available from 2022 onwards, showing a progressive rise from $24,800 thousand in 2022 to $41,000 thousand in 2025. This increase reflects either an expansion in depreciable assets or adjustments in depreciation methods or estimates, leading to higher expenses over time.

Estimated Total Useful Life

The estimated useful life of assets remained constant at 15 years for 2022 and 2023, increased slightly to 16 years in 2024, then significantly declined to 11 years in 2025. This reduction could signal a strategic revision in asset lifespan assumptions, possibly due to changing asset composition, accelerated wear and tear, or updated accounting policies.

Accumulated depreciation and amortization

The accumulated depreciation and amortization shows a consistent upward trend from June 2020 to June 2024, increasing from 126,746 thousand US dollars to 213,896 thousand US dollars. This indicates a steady accumulation of depreciation charges over this period. However, there is a notable decrease in the figure in June 2025, dropping sharply to 118,245 thousand US dollars, which deviates from the prior trend and might suggest asset disposals, revaluation, or changes in accounting estimates.

Depreciation expense

Depreciation expense data is not available for June 2020 and June 2021 but begins at 24,800 thousand US dollars in June 2022. From that point, it shows a rising trend, increasing to 26,900 thousand US dollars in June 2023, 30,100 thousand US dollars in June 2024, and further rising significantly to 41,000 thousand US dollars in June 2025. This progressive increase in annual depreciation expense indicates either higher capital expenditures on fixed assets or revised depreciation policies leading to faster asset write-downs.

Time elapsed since purchase

The time elapsed since purchase remains constant at 7 years from June 2022 through June 2024, then decreases sharply to 3 years in June 2025. This suggests that the asset base was significantly renewed or upgraded around 3 years before June 2025, replacing older assets that had been in use for about 7 years previously.

Overall analysis

The data reflects a period of stable asset use and depreciation accumulation from 2020 through 2024, with steady growth in accumulated depreciation and increasing annual depreciation charges. The sudden decrease in accumulated depreciation and the reduction in the average age of assets in 2025 indicate substantial asset turnover or revaluation efforts during that year. Additionally, the sharp rise in depreciation expense in 2025 may be attributed to this asset renewal, as newer assets could have differing depreciation schedules or accelerated depreciation methods applied. These patterns suggest strategic changes in asset management or investment in new property, plant, and equipment occurred around 2025.

The analysis of the property, plant, and equipment (PP&E) data over the reported periods indicates a consistent upward trend in the net value of PP&E. From June 30, 2020, to June 30, 2025, the net PP&E increases notably, starting at approximately $233.8 million and reaching around $504.5 million. This represents considerable growth in the company’s investment in long-term tangible assets.

Net Property, Plant, and Equipment

The net PP&E value rises steadily each year, with a more pronounced increase between June 30, 2023, and June 30, 2025. The value grows from about $290.2 million in 2023 to $414.0 million in 2024 and further to $504.5 million in 2025, showing an acceleration in asset acquisition or value retention during the latest periods.

Land

The land component, a significant portion of PP&E, also exhibits consistent growth. It starts at approximately $75.3 million in 2020 and increases steadily to about $162.8 million by 2025. The notable jump between 2023 and 2024—from roughly $86.6 million to $150.1 million—indicates substantial land acquisition or revaluation during that timeframe.

Depreciation Expense

Depreciation expense data is available from June 30, 2022, showing an ascending trend. It increases from $24.8 million in 2022 to $26.9 million in 2023, then rises further to $30.1 million in 2024 and reaches $41.0 million in 2025. This upward movement reflects growing depreciation charges, possibly due to asset additions or accelerated depreciation methods.

Estimated Remaining Life

The estimated remaining life of the PP&E remains relatively stable, fluctuating marginally between 8 and 9 years over the available data period. This suggests the overall useful life assumptions applied to the company’s assets have not experienced significant changes.

Overall, the data indicates a period of substantial investment and expansion in property, plant, and equipment, with a particularly sharp increase in land holdings and depreciation expenses noted in recent years. This pattern aligns with a growth strategy focusing on asset accumulation and suggests increased production capacity or facility enhancements. The steady estimated remaining life supports the consistency in asset management policies.