Super Micro Computer Inc. (NASDAQ:SMCI)

Net Fixed Asset Turnover

The net fixed asset turnover ratio demonstrates an overall increasing trend over the examined periods. Starting at 16.88 in mid-2019, it declined to 12.95 by mid-2021, indicating a reduction in efficiency in using fixed assets to generate sales during this period. However, from mid-2022 onwards, there is a marked increase reaching 36.21 by mid-2024, reflecting a significant improvement in asset utilization efficiency.

Net Fixed Asset Turnover (Including Operating Lease, Right-of-Use Asset)

This adjusted ratio closely mirrors the trend seen in the standard net fixed asset turnover but consistently registers slightly lower values after 2019. The ratio decreases from 16.88 in 2019 to 12.07 in 2021, followed by a recovery to 33.35 in 2024. The pattern suggests that incorporating operating leases moderately reduces the turnover ratio, but the improvement in asset efficiency from 2022 onward remains evident.

Total Asset Turnover

The total asset turnover ratio shows a declining trend over the five-year period, starting at 2.08 in mid-2019 and decreasing to 1.59 by mid-2021. It stabilizes around that level through mid-2022 and mid-2023 before dropping again to 1.53 in 2024. This suggests that the company's overall efficiency in generating sales from total assets has gradually weakened.

Equity Turnover

Equity turnover experiences fluctuations. Beginning at 3.72 in 2019, it falls to 3.13 in 2020, then slightly recovers to 3.25 in 2021. It increases further to 3.64 in 2022 before a modest decline to 3.61 in 2023 and then drops more significantly to 2.77 in 2024. These movements indicate variability in how effectively equity is being used to generate revenue, with a notable decrease in the most recent year.

Overall Analysis

The patterns suggest improving fixed asset efficiency, especially when excluding lease considerations, highlighting better utilization or asset management post-2021. However, total asset turnover declining suggests challenges in overall asset utilization or possible increases in asset base without commensurate sales growth. Meanwhile, equity turnover’s volatility may reflect changes in either profitability or capital structure. The combined insights highlight strengths in fixed asset management contrasted with potential inefficiencies or shifts in other assets and equity usage over time.

Net Sales

Net sales experienced fluctuations initially with a decrease from 3,500,360 thousand USD in 2019 to 3,339,281 thousand USD in 2020, followed by a moderate recovery to 3,557,422 thousand USD in 2021. From 2021 onward, there was a significant upward trend, with net sales rising sharply to 5,196,099 thousand USD in 2022, continuing to 7,123,482 thousand USD in 2023, and nearly doubling again to 14,989,251 thousand USD in 2024. This reflects a strong acceleration in revenue growth over the most recent three years.

Property, Plant, and Equipment, Net

The value of property, plant, and equipment showed steady growth over the six-year period. Beginning at 207,337 thousand USD in 2019, it increased gradually each year until 2023, reaching 290,240 thousand USD. In 2024, there was a more pronounced increase to 414,008 thousand USD. This suggests ongoing investment in fixed assets with a notable acceleration in the most recent year.

Net Fixed Asset Turnover

This ratio, which measures how efficiently fixed assets are used to generate sales, declined from 16.88 in 2019 to a low of 12.95 in 2021, indicating a decrease in fixed asset efficiency during that period. However, from 2021 onwards, a marked improvement occurred, with the ratio climbing significantly to 18.17 in 2022, 24.54 in 2023, and sharply rising to 36.21 in 2024. The rapid increase in this ratio suggests much higher efficiency in utilizing fixed assets to generate revenue in the latest years, likely driven by the accelerated sales growth outpacing asset additions.

Net Sales

Net sales demonstrated an overall upward trend throughout the period analyzed. Starting at approximately 3.5 billion US dollars in mid-2019, sales experienced a slight decline in 2020 but then steadily increased over the following years. A notable acceleration occurred particularly from 2021 onward, with net sales more than doubling between 2022 and 2024, reaching nearly 15 billion US dollars by mid-2024. This pattern suggests strong growth momentum and increasing market demand or improved business operations.

Property, Plant, and Equipment, Net

The net value of property, plant, and equipment, including operating lease right-of-use assets, increased consistently over the years. From a base of approximately 207 million US dollars in mid-2019, the asset base rose steadily, reaching about 309 million US dollars in 2022 and experiencing a significant jump to nearly 450 million US dollars by mid-2024. The growth in fixed assets reflects investment in long-term operational capacity and possibly expansion of production capabilities or infrastructure.

Net Fixed Asset Turnover Ratio

The net fixed asset turnover ratio, which measures the efficiency of using fixed assets to generate sales, showed variability but an overall positive trend. Initially, the ratio decreased from 16.88 in 2019 to around 12 by 2021, indicating a temporary decline in asset utilization efficiency. However, from 2021 onwards, the ratio recovered strongly, reaching 23.02 in 2023 and an impressive 33.35 by mid-2024. This recovery and substantial increase suggest that the company improved its ability to generate higher sales per unit of fixed asset value, indicating enhanced operational efficiency or better utilization of capital investments.

Summary of Trends

The data reveals sustained growth in sales revenue alongside a steady increase in fixed assets, coupled with improving efficiency in asset utilization in the latter years. The sharp rise in both sales and asset turnover in 2023 and 2024 reflects accelerated business expansion and improved capital use. These patterns collectively depict a company increasing its scale and operational effectiveness, likely positioning itself well for continued growth.

The financial data indicates significant developments and trends in revenue, asset base, and efficiency over the analyzed periods.

Net Sales

Net sales decreased slightly from US$3.50 billion in June 2019 to approximately US$3.34 billion in June 2020. From that point, a recovery and substantial growth occurred, with sales increasing to about US$3.56 billion in June 2021, then surging further to US$5.20 billion in June 2022, US$7.12 billion in June 2023, and reaching nearly US$15.0 billion by June 2024. This progression highlights strong revenue expansion, particularly pronounced in the last two years.

Total Assets

The total assets increased steadily each year, from roughly US$1.68 billion in June 2019 to US$1.92 billion in June 2020, a 14% increase. Growth continued to US$2.24 billion in June 2021 and accelerated further to over US$3.20 billion in June 2022. The upward trend persisted to US$3.67 billion in June 2023, and most notably, assets almost tripled to approximately US$9.83 billion by June 2024. This pattern suggests significant investment or acquisition activity, enabling expansion of the asset base.

Total Asset Turnover

The total asset turnover ratio declined from 2.08 in June 2019 to 1.74 in June 2020, followed by continued decreases to 1.59 in June 2021 and 1.62 in June 2022. However, it rebounded to 1.94 in June 2023 before declining again to 1.53 in June 2024. Overall, the ratio shows some volatility with a downward tendency, implying that asset utilization efficiency, measured as revenue generated per unit of assets, has generally weakened over the period, despite recent temporary improvements. The large asset base growth in recent years appears to outpace sales growth proportionally in the latest period.

Net Sales

Net sales demonstrated a consistent upward trajectory over the analyzed periods, with a notable acceleration beginning in the year ending June 30, 2022. Starting at approximately 3.5 billion US dollars in 2019, net sales declined slightly in 2020 but recovered in 2021. From 2022 onwards, there was a marked increase culminating in nearly 15 billion US dollars in 2024, representing more than a fourfold increase compared to 2019.

Total Stockholders’ Equity

Stockholders’ equity showed steady growth throughout the years examined, expanding from just over 940 million US dollars in 2019 to 5.4 billion US dollars in 2024. The increase was gradual until the year 2023, after which equity experienced a significant escalation that corresponds timewise to the surge in net sales, suggesting reinvestment or capital increases supporting the company’s expansion.

Equity Turnover Ratio

The equity turnover ratio, reflecting the efficiency of equity utilization to generate sales, exhibited more variability. It decreased from 3.72 in 2019 to a low of 3.13 in 2020, slightly recovered in 2021, and peaked around 3.64 in 2022. However, from 2023 onwards, the ratio declined notably to 2.77 in 2024, indicating that while sales increased sharply, equity grew at a proportionally faster rate, resulting in reduced turnover efficiency.

Overall Insights

The company experienced robust growth in both sales and equity over the five-year period, with the most significant escalation occurring in the last two years. The disproportionate increase in equity relative to sales toward the end suggests strategic capital accumulation or asset base expansion possibly to support sustainable growth. The declining equity turnover ratio in the most recent periods may warrant analysis of capital deployment efficiency and potential impacts on return on equity and operational leverage.