Super Micro Computer Inc. (NASDAQ:SMCI)

The financial data over the observed periods reveals distinct trends in the composition of liabilities and stockholders' equity.

Accounts Payable

Accounts payable as a percentage of total liabilities and stockholders’ equity fluctuated, reaching peaks near 27% in mid-2021 and again in late 2023. However, this metric showed a downward trend starting from early 2024, falling sharply by the end of the data period to below 10%, indicating a reduction in payables relative to the capital structure.

Accrued Liabilities

Accrued liabilities decreased steadily over time, declining from around 7.8% in late 2019 to slightly above 2% in mid-2025. This consistent decrease suggests a reduction in short-term obligations accrued but not yet paid.

Income Taxes Payable

Income taxes payable remained relatively low throughout, with minor fluctuations. Notably, an increase occurred in early 2023, peaking near 3.9%, followed by a tapering back to under 0.5% by mid-2025.

Lines of Credit and Current Portion of Term Loans

This item showed volatility, with a significant spike in September 2021 reaching over 9.6%, followed by a rise to over 14% in mid-2022. Thereafter, it declined substantially to around 0.5–1.6% range by mid-2025, indicating varying reliance on short-term borrowing.

Deferred Revenue (Current and Non-Current)

Current deferred revenue experienced some fluctuations but generally trended downward from about 5.7% in 2019 to around 2.6–3.3% in 2025, indicating a contraction in unearned revenues. Non-current deferred revenue was more stable, mostly between 4% and 5.2% initially, but decreased gradually to near 2.6% by mid-2025.

Current Liabilities

Current liabilities as a whole showed a general increase from about 34.6% in 2019 to nearly 48.7% in early 2022, before declining significantly to under 17% by mid-2025. This drop corresponds with the reductions observed in accounts payable and accrued liabilities.

Term Loans, Non-Current

Non-current term loans appeared mid-2020 and grew to a peak around 5.2% in late 2021. Following that, a gradual decline is observed to less than 0.3% by mid-2025, signifying repayment or refinancing of long-term debt.

Convertible Notes

Convertible notes were absent initially but emerged near late 2023, escalating quickly to over 33% of the capital structure by mid-2025. This sharp rise denotes increased debt financing through convertible instruments in recent quarters.

Other Long-Term Liabilities

This category declined steadily from about 2.2% in 2019 to under 1% by early 2024, before slightly increasing towards 2.3% at the end of the period, showing overall modest long-term obligations aside from term loans and convertible notes.

Non-Current Liabilities

Non-current liabilities showed initial stability near 7–8.5% through mid-2021, increased substantially to over 23% in early 2024, and surged further to over 38% by mid-2025, largely driven by the rise in convertible notes and other long-term obligations.

Total Liabilities

The total liabilities progressed upward from approximately 43% in 2019 to a peak of around 58.5% in early 2022, then declined to roughly 36% by late 2024, before rising steeply to exceed 55% by mid-2025. This pattern indicates varying reliance on liabilities, with a recent strong increase primarily due to convertible notes.

Common Stock and Additional Paid-in Capital

This equity component fluctuated between 15% and 22% mainly but spiked sharply to over 31% in early 2024, and then moderately decreased to about 20% at mid-2025, reflecting equity issuances or share repurchases affecting capital structure.

Treasury Stock

Treasury stock was recorded negatively early in the timeline, peaking near -2.8% in late 2020, but no subsequent data were provided, suggesting either no repurchases or changes in treasury shares during later periods.

Accumulated Other Comprehensive Income (Loss)

This remained relatively stable around zero to a low positive 0.03% throughout, indicating minimal impact on equity from other comprehensive income components.

Retained Earnings

Retained earnings showed variability, declining from about 37.5% in late 2019 to a low near 25.8% in early 2024, followed by moderate recovery to about 32.0% by mid-2025. This trend suggests fluctuations in cumulative profitability or dividend distributions affecting retained earnings.

Total Stockholders’ Equity

Stockholders’ equity moved inversely to total liabilities, starting near 57% in 2019, dipping to a low around 41.5% in early 2022, then recovering to above 59% in early 2024 before dropping sharply to 45% by mid-2025. These swings reflect changes in both retained earnings and share capital components, and the growing weight of convertible notes impacts the equity proportion.

Overall Capital Structure

The company's capital structure has seen notable shifts from 2019 through 2025. Initially balanced with approximately 57% equity and 43% liabilities, it shifted towards higher liabilities towards early 2022, then a reversal through early 2024, regaining equity dominance temporarily. However, by mid-2025, liabilities surged again largely due to convertible notes, reducing equity to below 45%. The increasing use of convertible notes and reduction in current liabilities and term loans suggest strategic financing adjustments toward convertible debt instruments and reduced reliance on traditional borrowings.