Economic Value Added (EVA)
EVA is registered trademark of Stern Stewart.
Economic value added or economic profit is the difference between revenues and costs,where costs include not only expenses, but also cost of capital.
Economic Profit
Super Micro Computer Inc., economic profit calculation
US$ in thousands
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).
1 NOPAT. See details »
2 Cost of capital. See details »
3 Invested capital. See details »
4 2026 Calculation
Economic profit = NOPAT – Cost of capital × Invested capital
= 4,044,758 – 19.55% × 25,606,460 = -960,626
The financial performance relative to the cost of capital demonstrates a consistent failure to generate positive economic value over the period from 2021 to 2026. Despite significant growth in nominal operating profits, the expansion of the invested capital base has outpaced profit growth, resulting in persistent negative economic profit.
- Net Operating Profit After Taxes (NOPAT)
- A strong upward trajectory is observed in NOPAT, which grew from 103.0 million US dollars in 2021 to a projected 4.04 billion US dollars by 2026. The most substantial increase occurs between 2025 and 2026, where operating profits more than triple, indicating a significant scaling of operational earning capacity.
- Invested Capital Expansion
- Invested capital has experienced exponential growth, rising from 1.28 billion US dollars in 2021 to 25.61 billion US dollars in 2026. A critical acceleration in capital deployment is noted between 2023 and 2024, where the invested base more than tripled, moving from 2.44 billion to 7.68 billion US dollars.
- Cost of Capital Trends
- The cost of capital remained volatile but generally high, peaking at 27.26% in 2023. While there is a downward trend toward the end of the period, reaching a low of 19.55% in 2026, the rate remains sufficiently high to impose a substantial capital charge on the expanding asset base.
- Economic Profit Analysis
- Economic profit has remained negative throughout the entire analyzed timeframe, signaling that the return on invested capital has consistently trailed the cost of capital. Although the deficit narrowed significantly in 2023 to -36.69 million US dollars, it widened sharply in 2024 and 2025, reaching a peak deficit of -1.51 billion US dollars. The projected improvement to -960.63 million US dollars in 2026 is driven by the combination of a massive spike in NOPAT and a reduction in the cost of capital, although the entity still fails to achieve economic value added.
The analysis indicates a strategic phase of aggressive capital investment. The negative economic profit suggests that the current scale of investment is not yet yielding returns sufficient to cover the cost of the capital employed, though the trajectory in 2026 suggests a narrowing gap between operating returns and capital costs.
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Net Operating Profit after Taxes (NOPAT)
Super Micro Computer Inc., NOPAT calculation
US$ in thousands
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).
1 Elimination of deferred tax expense. See details »
2 Addition of increase (decrease) in allowance for credit losses.
3 Addition of increase (decrease) in deferred revenue.
4 Addition of increase (decrease) in accrued warranty costs.
5 Addition of increase (decrease) in equity equivalents to net income.
6 2026 Calculation
Interest expense on capitalized operating leases = Operating lease liability × Discount rate
= 539,600 × 5.80% = 31,297
7 2026 Calculation
Tax benefit of interest expense = Adjusted interest expense × Statutory income tax rate
= 225,871 × 21.00% = 47,433
8 Addition of after taxes interest expense to net income.
9 2026 Calculation
Tax expense (benefit) of investment income = Investment income, before tax × Statutory income tax rate
= 203,820 × 21.00% = 42,802
10 Elimination of after taxes investment income.
The financial performance from June 30, 2021, to June 30, 2026, exhibits a strong upward trajectory in both core operating profitability and bottom-line earnings, characterized by significant scaling and a substantial acceleration in the final projected period.
- Net Operating Profit After Taxes (NOPAT) Trend
- A consistent and aggressive growth pattern is observed in NOPAT, which increased from 103,035 thousand USD in 2021 to 4,044,758 thousand USD by 2026. The growth was steady between 2021 and 2025, with a notable acceleration occurring in 2026, where NOPAT expanded by approximately 248% compared to the previous year. This indicates a substantial increase in the efficiency and scale of core business operations.
- Net Income Trajectory
- Net income followed a general growth trend, rising from 111,865 thousand USD in 2021 to 2,230,453 thousand USD in 2026. While the growth was robust through 2024, a slight contraction occurred in 2025, with net income decreasing to 1,048,854 thousand USD. However, a sharp recovery is noted in 2026, with earnings more than doubling from the 2025 level.
- Comparative Analysis of NOPAT and Net Income
- A divergence between operating profit and net income becomes evident in the later periods. In 2025, NOPAT continued to grow despite a decline in net income, suggesting that the dip in bottom-line earnings was driven by non-operating factors rather than a decline in core operational performance. By 2026, the gap widens significantly, as NOPAT reaches 4,044,758 thousand USD while net income stands at 2,230,453 thousand USD. This widening variance suggests a significant increase in non-operating expenses, interest burdens, or tax obligations that offset a substantial portion of the operating gains.
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Cash Operating Taxes
Super Micro Computer Inc., cash operating taxes calculation
US$ in thousands
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).
An analysis of the tax expenditures reveals a significant upward trajectory in both income tax provisions and cash operating taxes over the observed six-year period. The growth is characterized by an aggressive escalation in total tax outflows, particularly in the final two years of the period.
- Cash Operating Taxes Trend
- Cash operating taxes demonstrate consistent and uninterrupted annual growth, increasing from 15,997 thousand US$ in 2021 to 656,234 thousand US$ by 2026. The most substantial acceleration occurs between 2022 and 2023, where values more than tripled, followed by a continued steep climb through 2026.
- Income Tax Provision Volatility
- The income tax provision exhibits a more volatile growth pattern compared to cash taxes. While the provision rose from 6,936 thousand US$ in 2021 to 110,666 thousand US$ in 2023, a notable contraction occurred in 2024, with values dropping to 63,294 thousand US$. This was followed by a rapid recovery and an exponential increase to 556,329 thousand US$ by 2026.
- Divergence Between Cash Taxes and Provisions
- A persistent gap is observed where cash operating taxes consistently exceed the income tax provision for every year analyzed. This divergence is most prominent in 2024, when cash operating taxes continued to rise to 230,428 thousand US$ despite a sharp decline in the reported income tax provision. By 2026, although the provision increased substantially, cash operating taxes remained higher, indicating that actual cash tax payments are consistently outpacing the accounting tax provisions.
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Invested Capital
Super Micro Computer Inc., invested capital calculation (financing approach)
US$ in thousands
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).
1 Addition of capitalized operating leases.
2 Elimination of deferred taxes from assets and liabilities. See details »
3 Addition of allowance for doubtful accounts receivable.
4 Addition of deferred revenue.
5 Addition of accrued warranty costs.
6 Addition of equity equivalents to total Super Micro Computer, Inc. stockholders’ equity.
7 Removal of accumulated other comprehensive income.
8 Subtraction of construction in progress.
9 Subtraction of investment in marketable equity security.
Invested capital exhibits a trajectory of aggressive expansion from 2021 through 2026, increasing from US$ 1,282,041 thousand to US$ 25,606,460 thousand. This growth indicates a substantial escalation in the scale of capital deployed within the business, with a marked acceleration in growth rates occurring after 2023.
- Invested Capital Growth Trends
- A period of moderate growth is observed between 2021 and 2023, during which invested capital grew from US$ 1,282,041 thousand to US$ 2,437,425 thousand. This was followed by a phase of rapid expansion, with the figure rising to US$ 7,676,769 thousand in 2024 and ultimately reaching US$ 25,606,460 thousand by 2026. The total increase over the six-year period represents a growth of approximately 1,897%.
- Debt and Lease Obligations
- Total reported debt and leases remained relatively low through 2023, totaling US$ 309,462 thousand. Subsequently, a sharp upward trend emerged, with obligations increasing to US$ 2,209,527 thousand in 2024 and continuing to climb to US$ 9,259,887 thousand by 2026. The most significant surge occurred between 2023 and 2024, where debt levels increased by more than sevenfold.
- Equity Contribution
- Stockholders' equity grew consistently throughout the period, rising from US$ 1,096,225 thousand in 2021 to US$ 14,479,452 thousand in 2026. Significant increases are noted in 2024 and 2026, mirroring the overall expansion of the invested capital base and suggesting a strong accumulation of equity to support organizational growth.
- Capital Structure Evolution
- The composition of invested capital has shifted significantly. In 2021, debt represented a minimal portion of the total capital. By 2026, the financing mix became more diversified, with debt and leases accounting for approximately 36% and stockholders' equity accounting for approximately 56% of the total invested capital. This shift indicates an increased reliance on leveraged financing to fund the rapid expansion of the capital base.
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Cost of Capital
Super Micro Computer Inc., cost of capital calculations
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 24,491,670) | 24,491,670) | ÷ | 37,870,568) | = | 0.65 | 0.65 | × | 27.88% | = | 18.03% | ||
| Series A Mandatory Convertible Preferred Stock | 4,481,550) | 4,481,550) | ÷ | 37,870,568) | = | 0.12 | 0.12 | × | 7.00% | = | 0.83% | ||
| Lines of credit, term loans, and convertible notes3 | 8,357,748) | 8,357,748) | ÷ | 37,870,568) | = | 0.22 | 0.22 | × | 3.58% × (1 – 21.00%) | = | 0.62% | ||
| Operating lease liability4 | 539,600) | 539,600) | ÷ | 37,870,568) | = | 0.01 | 0.01 | × | 5.80% × (1 – 21.00%) | = | 0.07% | ||
| Total: | 37,870,568) | 1.00 | 19.55% | ||||||||||
Based on: 10-K (reporting date: 2026-06-30).
1 US$ in thousands
2 Equity. See details »
3 Lines of credit, term loans, and convertible notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 26,130,197) | 26,130,197) | ÷ | 31,741,229) | = | 0.82 | 0.82 | × | 27.88% | = | 22.95% | ||
| Series A Mandatory Convertible Preferred Stock | —) | —) | ÷ | 31,741,229) | = | 0.00 | 0.00 | × | 0.00% | = | 0.00% | ||
| Lines of credit, term loans, and convertible notes3 | 5,309,475) | 5,309,475) | ÷ | 31,741,229) | = | 0.17 | 0.17 | × | 2.06% × (1 – 21.00%) | = | 0.27% | ||
| Operating lease liability4 | 301,557) | 301,557) | ÷ | 31,741,229) | = | 0.01 | 0.01 | × | 5.80% × (1 – 21.00%) | = | 0.04% | ||
| Total: | 31,741,229) | 1.00 | 23.27% | ||||||||||
Based on: 10-K (reporting date: 2025-06-30).
1 US$ in thousands
2 Equity. See details »
3 Lines of credit, term loans, and convertible notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 27,027,141) | 27,027,141) | ÷ | 29,273,552) | = | 0.92 | 0.92 | × | 27.88% | = | 25.74% | ||
| Series A Mandatory Convertible Preferred Stock | —) | —) | ÷ | 29,273,552) | = | 0.00 | 0.00 | × | 0.00% | = | 0.00% | ||
| Lines of credit, term loans, and convertible notes3 | 2,211,029) | 2,211,029) | ÷ | 29,273,552) | = | 0.08 | 0.08 | × | 1.37% × (1 – 21.00%) | = | 0.08% | ||
| Operating lease liability4 | 35,382) | 35,382) | ÷ | 29,273,552) | = | 0.00 | 0.00 | × | 5.10% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 29,273,552) | 1.00 | 25.83% | ||||||||||
Based on: 10-K (reporting date: 2024-06-30).
1 US$ in thousands
2 Equity. See details »
3 Lines of credit, term loans, and convertible notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 13,501,598) | 13,501,598) | ÷ | 13,811,060) | = | 0.98 | 0.98 | × | 27.88% | = | 27.25% | ||
| Series A Mandatory Convertible Preferred Stock | —) | —) | ÷ | 13,811,060) | = | 0.00 | 0.00 | × | 0.00% | = | 0.00% | ||
| Lines of credit, term loans, and convertible notes3 | 290,302) | 290,302) | ÷ | 13,811,060) | = | 0.02 | 0.02 | × | 0.00% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 19,160) | 19,160) | ÷ | 13,811,060) | = | 0.00 | 0.00 | × | 3.10% × (1 – 21.00%) | = | 0.00% | ||
| Total: | 13,811,060) | 1.00 | 27.26% | ||||||||||
Based on: 10-K (reporting date: 2023-06-30).
1 US$ in thousands
2 Equity. See details »
3 Lines of credit, term loans, and convertible notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 3,627,650) | 3,627,650) | ÷ | 4,248,214) | = | 0.85 | 0.85 | × | 27.88% | = | 23.81% | ||
| Series A Mandatory Convertible Preferred Stock | —) | —) | ÷ | 4,248,214) | = | 0.00 | 0.00 | × | 0.00% | = | 0.00% | ||
| Lines of credit, term loans, and convertible notes3 | 596,764) | 596,764) | ÷ | 4,248,214) | = | 0.14 | 0.14 | × | 0.00% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 23,800) | 23,800) | ÷ | 4,248,214) | = | 0.01 | 0.01 | × | 3.00% × (1 – 21.00%) | = | 0.01% | ||
| Total: | 4,248,214) | 1.00 | 23.82% | ||||||||||
Based on: 10-K (reporting date: 2022-06-30).
1 US$ in thousands
2 Equity. See details »
3 Lines of credit, term loans, and convertible notes. See details »
4 Operating lease liability. See details »
| Capital (fair value)1 | Weights | Cost of capital | |||||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Equity2 | 1,806,080) | 1,806,080) | ÷ | 1,925,131) | = | 0.94 | 0.94 | × | 27.88% | = | 26.15% | ||
| Series A Mandatory Convertible Preferred Stock | —) | —) | ÷ | 1,925,131) | = | 0.00 | 0.00 | × | 0.00% | = | 0.00% | ||
| Lines of credit, term loans, and convertible notes3 | 98,190) | 98,190) | ÷ | 1,925,131) | = | 0.05 | 0.05 | × | 0.00% × (1 – 21.00%) | = | 0.00% | ||
| Operating lease liability4 | 20,861) | 20,861) | ÷ | 1,925,131) | = | 0.01 | 0.01 | × | 3.40% × (1 – 21.00%) | = | 0.03% | ||
| Total: | 1,925,131) | 1.00 | 26.18% | ||||||||||
Based on: 10-K (reporting date: 2021-06-30).
1 US$ in thousands
2 Equity. See details »
3 Lines of credit, term loans, and convertible notes. See details »
4 Operating lease liability. See details »
Economic Spread Ratio
Super Micro Computer Inc., economic spread ratio calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (960,626) | (1,514,349) | (888,670) | (36,689) | (215,367) | (232,648) | |
| Invested capital2 | 25,606,460) | 11,494,019) | 7,676,769) | 2,437,425) | 2,222,919) | 1,282,041) | |
| Performance Ratio | |||||||
| Economic spread ratio3 | -3.75% | -13.18% | -11.58% | -1.51% | -9.69% | -18.15% | |
| Benchmarks | |||||||
| Economic Spread Ratio, Competitors4 | |||||||
| Apple Inc. | — | 107.08% | 164.37% | 137.56% | 199.07% | 195.44% | |
| Arista Networks Inc. | — | 53.79% | 35.21% | 20.60% | 16.12% | 31.17% | |
| Cisco Systems Inc. | -1.99% | -6.44% | -3.31% | 3.37% | 3.35% | 2.59% | |
| Dell Technologies Inc. | -0.22% | -9.72% | -8.36% | -0.70% | 3.17% | -1.35% | |
| Lumentum Holdings Inc. | -170.64% | -23.28% | -29.00% | -19.02% | -6.35% | 5.97% | |
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).
1 Economic profit. See details »
2 Invested capital. See details »
3 2026 Calculation
Economic spread ratio = 100 × Economic profit ÷ Invested capital
= 100 × -960,626 ÷ 25,606,460 = -3.75%
4 Click competitor name to see calculations.
Analysis of economic value creation reveals a consistent failure to achieve positive economic profit throughout the period from June 2021 to June 2026. Despite a massive expansion of the capital base, the company has operated with a negative economic spread, indicating that the return on invested capital has remained below the weighted average cost of capital.
- Economic Profit Trends
- A volatile trend is observed in economic profit, which remained negative across all reported periods. Initial improvements were noted between 2021 and 2023, with losses narrowing from -232.6 million to -36.7 million. However, this trend reversed sharply in 2024 and 2025, with economic losses peaking at -1.51 billion in June 2025. A partial recovery is evident by June 2026, as losses reduced to -960.6 million.
- Invested Capital Growth
- An aggressive expansion of invested capital is evident, shifting from 1.28 billion in 2021 to 25.61 billion by 2026. This growth accelerated significantly starting in 2024, with the capital base more than tripling between 2023 and 2024, and continuing to expand rapidly through 2026. This suggests a period of heavy investment in assets or operations that has not yet yielded positive economic value.
- Economic Spread Ratio Performance
- The economic spread ratio highlights a period of near-equilibrium in 2023, reaching its highest point at -1.51%. Following this, a significant deterioration occurred, with the ratio falling to -11.58% in 2024 and -13.18% in 2025. By June 2026, the ratio improved to -3.75%, suggesting that while the company still fails to create economic value, the efficiency of the invested capital relative to its cost improved markedly during the final year of the period.
The overall trajectory indicates a disconnect between capital accumulation and value generation. While the invested capital grew exponentially, the economic profit remained negative, suggesting that the scale of expansion has outpaced the company's ability to generate returns above its cost of capital. The improvement in the spread ratio in 2026, despite the record-high capital base, may indicate a shift toward better capital utilization.
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Economic Profit Margin
Super Micro Computer Inc., economic profit margin calculation, comparison to benchmarks
| Jun 30, 2026 | Jun 30, 2025 | Jun 30, 2024 | Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | ||
|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||
| Economic profit1 | (960,626) | (1,514,349) | (888,670) | (36,689) | (215,367) | (232,648) | |
| Net sales | 39,063,072) | 21,972,042) | 14,989,251) | 7,123,482) | 5,196,099) | 3,557,422) | |
| Add: Increase (decrease) in deferred revenue | 1,880,650) | 315,006) | 111,928) | 70,587) | 31,544) | (1,452) | |
| Adjusted net sales | 40,943,722) | 22,287,048) | 15,101,179) | 7,194,069) | 5,227,643) | 3,555,970) | |
| Performance Ratio | |||||||
| Economic profit margin2 | -2.35% | -6.79% | -5.88% | -0.51% | -4.12% | -6.54% | |
| Benchmarks | |||||||
| Economic Profit Margin, Competitors3 | |||||||
| Apple Inc. | — | 22.83% | 21.01% | 21.64% | 23.53% | 22.71% | |
| Arista Networks Inc. | — | 33.25% | 24.93% | 15.55% | 11.11% | 18.26% | |
| Cisco Systems Inc. | -3.00% | -10.38% | -5.35% | 3.36% | 3.76% | 2.89% | |
| Dell Technologies Inc. | -0.11% | -5.25% | -5.13% | -0.39% | 1.66% | -1.16% | |
| Lumentum Holdings Inc. | -267.86% | -43.07% | -65.28% | -31.20% | -9.27% | 6.73% | |
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).
1 Economic profit. See details »
2 2026 Calculation
Economic profit margin = 100 × Economic profit ÷ Adjusted net sales
= 100 × -960,626 ÷ 40,943,722 = -2.35%
3 Click competitor name to see calculations.
The financial performance across the observed period is characterized by a significant disconnect between aggressive revenue expansion and the creation of economic value. While adjusted net sales have grown exponentially, the entity has consistently failed to generate positive economic profit, indicating that the returns on invested capital have remained below the required cost of capital.
- Revenue Expansion Trends
- Adjusted net sales demonstrate a consistent and rapid upward trajectory, increasing from approximately 3.56 billion in June 2021 to over 40.94 billion by June 2026. The most pronounced acceleration occurs between 2023 and 2026, where sales figures increase more than fivefold, suggesting a period of intense market scaling.
- Economic Profit Volatility
- Economic profit remains negative throughout the entire duration. A period of relative improvement is noted through June 2023, where losses narrowed to 36.69 million. However, this trend reversed sharply in 2024 and 2025, with economic losses peaking at 1.51 billion in June 2025, before showing a moderate recovery to 960.63 million by June 2026.
- Economic Profit Margin Analysis
- The economic profit margin exhibits significant fluctuations, reflecting an inability to translate sales volume into economic value. The margin improved from -6.54% in 2021 to a near-breakeven -0.51% in 2023. Subsequently, the margin deteriorated to -6.79% by 2025, coinciding with the peak in absolute economic losses. A corrective trend is observed in 2026, with the margin improving to -2.35%, although it remains firmly in negative territory.
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