Stock Analysis on Net
Stock Analysis on Net

Super Micro Computer Inc. (NASDAQ:SMCI)

$24.99

Return on Equity (ROE)
since 2007

Microsoft Excel

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Calculation

Super Micro Computer Inc., ROE, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30).

1 US$ in thousands


Analysis of the financial trajectory reveals a volatile but ultimately expanding return on equity (ROE) over the analyzed period. The trajectory is marked by distinct phases of stagnation, rapid acceleration, and subsequent stabilization as the company's capital base expanded.

Early Performance and Volatility (2007–2019)
During this interval, ROE exhibited significant fluctuations, starting at 16.69% in 2007 and declining to a nadir of 5.70% in 2013. Although net income generally trended upward—growing from $19.3 million in 2007 to $71.9 million in 2018—the steady increase in stockholders' equity often outpaced earnings growth, resulting in a compressed ROE for much of the decade.
Accelerated Profitability Phase (2020–2023)
A period of aggressive growth began in 2020, leading to a peak ROE of 32.45% in 2023. This surge was primarily driven by an exponential increase in net income, which climbed from $84.3 million in 2019 to $639.9 million in 2023. During this window, the rate of earnings growth significantly exceeded the rate of equity accumulation, leading to a sharp improvement in capital efficiency.
Capital Expansion and ROE Stabilization (2024–2026)
In the final period, net income continues to scale rapidly, reaching a projected $2.23 billion by 2026. However, ROE displays a moderating trend, shifting from 21.28% in 2024 to 15.40% in 2026. This decline in the ratio, despite record profits, is the result of a massive expansion in the equity base, which increases from $5.4 billion in 2023 to approximately $14.48 billion by 2026, thereby diluting the return on each unit of equity.

Comparison to Competitors

Super Micro Computer Inc., ROE, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30).


Comparison to Sector (Technology Hardware & Equipment)

Super Micro Computer Inc., ROE, long-term trends, comparison to sector (technology hardware & equipment)

Microsoft Excel

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30).


Comparison to Industry (Information Technology)

Super Micro Computer Inc., ROE, long-term trends, comparison to industry (information technology)

Microsoft Excel

Based on: 10-K (reporting date: 2026-06-30), 10-K (reporting date: 2025-06-30), 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), 10-K (reporting date: 2018-06-30), 10-K (reporting date: 2017-06-30), 10-K (reporting date: 2016-06-30), 10-K (reporting date: 2015-06-30), 10-K (reporting date: 2014-06-30), 10-K (reporting date: 2013-06-30), 10-K (reporting date: 2012-06-30), 10-K (reporting date: 2011-06-30), 10-K (reporting date: 2010-06-30), 10-K (reporting date: 2009-06-30), 10-K (reporting date: 2008-06-30), 10-K (reporting date: 2007-06-30).