Analysis of Profitability Ratios
Quarterly Data
Profitability ratios measure the company ability to generate profitable sales from its resources (assets).
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- Income Statement
- Common-Size Balance Sheet: Liabilities and Stockholders’ Equity
- Analysis of Solvency Ratios
- Analysis of Geographic Areas
- Capital Asset Pricing Model (CAPM)
- Return on Assets (ROA) since 2007
- Total Asset Turnover since 2007
- Price to Earnings (P/E) since 2007
- Price to Sales (P/S) since 2007
- Analysis of Revenues
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Profitability Ratios (Summary)
Super Micro Computer Inc., profitability ratios (quarterly data)
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
The profitability ratios demonstrate a generally positive trend over the observed period, with significant improvements from 2020 to 2023, followed by a moderation and eventual decline in more recent quarters. Initial values are relatively modest, but show consistent growth before peaking around the end of 2023 and beginning of 2024. The latter half of the period exhibits a clear downward trajectory across all measured metrics.
- Gross Profit Margin
- The gross profit margin experienced a gradual increase from 15.91% in September 2020 to a peak of 18.23% in March 2023. Subsequently, the margin declined steadily, reaching 8.02% in March 2025. This suggests increasing cost pressures or a shift in sales mix towards lower-margin products in the later periods.
- Operating Profit Margin
- Similar to the gross profit margin, the operating profit margin exhibited growth, rising from 2.52% in September 2020 to 10.68% in June 2023. A consistent decrease followed, with the margin falling to 3.68% by March 2025. This indicates that while revenue growth initially translated into improved operational efficiency, this trend reversed in later quarters, potentially due to increased operating expenses or decreased pricing power.
- Net Profit Margin
- The net profit margin mirrored the trends observed in the gross and operating profit margins, increasing from 2.56% in September 2020 to 8.98% in June 2023, before declining to 3.11% in March 2025. This suggests that factors impacting gross and operating profitability ultimately affected the bottom line.
- Return on Equity (ROE)
- ROE demonstrated the most substantial growth of all the ratios, increasing from 7.88% in September 2020 to a high of 33.21% in March 2023. The subsequent decline was also pronounced, with ROE falling to 12.48% in March 2025. This indicates a diminishing ability to generate profits from shareholder investments.
- Return on Assets (ROA)
- ROA also showed a positive trend initially, rising from 4.65% in September 2020 to 18.81% in December 2022. The decline from this peak was consistent, reaching 3.12% in March 2025. This suggests a decreasing efficiency in utilizing assets to generate earnings.
Overall, the observed trends suggest a period of strong profitability growth followed by a significant downturn. The consistent decline across all ratios in the most recent quarters warrants further investigation to determine the underlying causes and potential mitigating strategies.
Return on Sales
Return on Investment
Gross Profit Margin
Super Micro Computer Inc., gross profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Gross profit | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Gross profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Gross Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
Gross profit margin = 100
× (Gross profitQ2 2026
+ Gross profitQ1 2026
+ Gross profitQ4 2025
+ Gross profitQ3 2025)
÷ (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The gross profit margin exhibited fluctuations over the observed period, beginning at 15.91% in September 2020 and concluding at 8.02% in March 2025. An initial period of relative stability is followed by a notable increase and subsequent decline.
- Initial Phase (Sep 2020 – Dec 2021)
- From September 2020 through December 2021, the gross profit margin remained relatively stable, fluctuating between 13.68% and 16.03%. This suggests a consistent ability to maintain profitability on each dollar of sales during this timeframe. A slight downward trend is observable during this period.
- Growth and Peak (Mar 2022 – Dec 2022)
- Beginning in March 2022, the gross profit margin experienced a period of significant growth, peaking at 18.23% in March 2023. This increase coincided with a substantial rise in net sales. The margin continued to 17.80% in December 2022, indicating improved cost management or pricing power as sales volume increased.
- Decline and Volatility (Mar 2023 – Jun 2025)
- Following the peak, the gross profit margin began a consistent decline. From March 2023 to June 2025, the margin decreased from 18.23% to 8.02%. This decline is particularly pronounced in the latter half of the period. While net sales continued to increase substantially, the rate of gross profit growth did not keep pace, suggesting increasing costs of goods sold or pricing pressures. The most significant drop occurred between December 2024 and March 2025.
- Overall Trend
- The overall trend indicates a shift from a period of stable and improving profitability to a period of declining profitability despite significant revenue growth. This suggests potential challenges in maintaining cost control or pricing strategies as the company scales. The substantial decrease in the most recent period warrants further investigation.
Operating Profit Margin
Super Micro Computer Inc., operating profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Income from operations | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Operating profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Operating Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
Operating profit margin = 100
× (Income from operationsQ2 2026
+ Income from operationsQ1 2026
+ Income from operationsQ4 2025
+ Income from operationsQ3 2025)
÷ (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The operating profit margin exhibited a generally increasing trend over the observed period, although with notable fluctuations. Initial values were relatively low, followed by substantial growth, and then a recent decline.
- Initial Phase (Sep 30, 2020 – Dec 31, 2021)
- The operating profit margin began at 2.52% and demonstrated modest growth, reaching 2.85% by December 31, 2020. A slight decrease to 2.79% was observed in the subsequent quarter, followed by an increase to 3.48% by June 30, 2021. The margin stabilized around 3.2% to 3.27% for the remainder of this period.
- Significant Expansion (Mar 31, 2022 – Jun 30, 2023)
- A period of significant expansion commenced in March 2022, with the operating profit margin increasing from 4.52% to a peak of 10.68% by June 2023. This growth coincided with substantial increases in income from operations and net sales. The margin reached its highest point at 10.39% in December 2022 and remained above 10% through the first half of 2023.
- Recent Decline (Sep 30, 2023 – Jun 30, 2025)
- Following the peak in June 2023, the operating profit margin began a downward trend. It decreased to 9.65% in September 2023 and 9.40% in December 2023. While a slight recovery to 9.72% occurred in March 2024, the margin continued to decline, reaching 8.08% in June 2024 and 7.42% in September 2024. This decline continued into 2025, with the margin falling to 6.09% in March 2025 and 5.70% in June 2025. The most recent value, as of September 30, 2025, is 4.40%, and December 31, 2025 is 3.68%.
- Overall Trend
- Despite the recent decline, the operating profit margin generally increased over the entire period. However, the rate of increase has slowed considerably, and the most recent quarters indicate a concerning trend of decreasing profitability. The substantial growth experienced between March 2022 and June 2023 has been partially eroded by the subsequent decline.
Net Profit Margin
Super Micro Computer Inc., net profit margin calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Net sales | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| Net profit margin1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| Net Profit Margin, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
Net profit margin = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ (Net salesQ2 2026
+ Net salesQ1 2026
+ Net salesQ4 2025
+ Net salesQ3 2025)
= 100 × ( + + + )
÷ ( + + + )
=
2 Click competitor name to see calculations.
The net profit margin exhibited a generally increasing trend over the observed period, punctuated by some fluctuations. Initial values were relatively stable, followed by a period of significant growth, and then a recent decline.
- Initial Period (Sep 30, 2020 – Dec 31, 2021)
- The net profit margin began at 2.56% and demonstrated modest growth, reaching 3.00% by December 31, 2021. This indicates a slight improvement in profitability during this timeframe, suggesting effective cost management or pricing strategies relative to sales.
- Growth Phase (Mar 31, 2022 – Jun 30, 2023)
- A substantial increase in the net profit margin is evident from March 31, 2022, peaking at 8.98% in June 30, 2023. This period reflects a significant improvement in the company’s ability to convert sales into profit, potentially driven by increased operational efficiency, favorable market conditions, or a shift towards higher-margin products. The margin more than tripled during this period.
- Recent Decline (Sep 30, 2023 – Dec 31, 2025)
- Following the peak, the net profit margin experienced a noticeable decline. It decreased to 3.11% by March 31, 2025, and further to 4.77% by June 30, 2025, before settling at 3.77% by September 30, 2025 and finally 3.11% by December 31, 2025. This suggests increasing costs, pricing pressures, or a change in the sales mix towards lower-margin products. The decline is substantial, representing a significant erosion of profitability compared to the prior peak.
- Overall Trend
- While the overall trend demonstrates an increase in net profit margin from 2020 to 2023, the recent decline warrants attention. The company’s ability to regain previous levels of profitability will likely depend on its ability to address the factors contributing to the margin compression observed in the latter part of the period.
The fluctuations in net profit margin suggest a sensitivity to external factors or internal operational changes. Further investigation into the underlying drivers of these changes is recommended.
Return on Equity (ROE)
Super Micro Computer Inc., ROE calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Total Super Micro Computer, Inc. stockholders’ equity | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROE1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROE, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
ROE = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Total Super Micro Computer, Inc. stockholders’ equity
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Equity (ROE) exhibited a generally increasing trend over the observed period, punctuated by periods of stabilization and slight decline. Initial values were in the high single digits, progressing to a peak in late 2022 before experiencing some moderation. This suggests improving efficiency in generating profits from shareholder investments, although recent quarters indicate a potential shift in this trajectory.
- Initial Growth (Sep 30, 2020 – Jun 30, 2021)
- ROE began at 7.88% in September 2020 and demonstrated consistent growth, reaching 10.20% by June 2021. This initial increase suggests a strengthening ability to generate earnings relative to equity during this period.
- Accelerated Expansion (Mar 31, 2022 – Dec 31, 2022)
- A period of significant acceleration followed, with ROE increasing from 14.41% in March 2022 to a peak of 31.80% by December 2022. This substantial rise coincided with a considerable increase in net income and total stockholders’ equity, indicating a highly effective utilization of shareholder investments.
- Peak and Subsequent Moderation (Mar 31, 2023 – Dec 31, 2025)
- Following the peak, ROE experienced a moderate decline, fluctuating between 32.45% and 23.80% through March 2024. While remaining at relatively high levels, this suggests a potential stabilization or slight decrease in the efficiency of equity utilization. The most recent observation in December 2025 shows a further decrease to 12.48%, indicating a more pronounced downward trend in the latter part of the period. This decline occurred despite continued growth in net income, suggesting that equity growth outpaced earnings growth.
- Equity Growth vs. Net Income
- The substantial growth in total stockholders’ equity, particularly from March 2022 onwards, appears to have influenced the ROE trend. While net income generally increased over the period, the rate of equity growth was often higher, contributing to the moderation of ROE after December 2022. This suggests that the company was retaining earnings and/or issuing new equity, which diluted the return to existing shareholders.
In summary, the ROE demonstrated a strong positive trend for much of the observed period, culminating in a peak in late 2022. However, more recent quarters indicate a potential shift towards stabilization and decline, potentially driven by faster equity growth relative to net income. Continued monitoring of these trends is warranted to assess the long-term sustainability of profitability relative to shareholder investment.
Return on Assets (ROA)
Super Micro Computer Inc., ROA calculation (quarterly data)
| Dec 31, 2025 | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | Sep 30, 2023 | Jun 30, 2023 | Mar 31, 2023 | Dec 31, 2022 | Sep 30, 2022 | Jun 30, 2022 | Mar 31, 2022 | Dec 31, 2021 | Sep 30, 2021 | Jun 30, 2021 | Mar 31, 2021 | Dec 31, 2020 | Sep 30, 2020 | ||||||||
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
| Selected Financial Data (US$ in thousands) | |||||||||||||||||||||||||||||
| Net income | |||||||||||||||||||||||||||||
| Total assets | |||||||||||||||||||||||||||||
| Profitability Ratio | |||||||||||||||||||||||||||||
| ROA1 | |||||||||||||||||||||||||||||
| Benchmarks | |||||||||||||||||||||||||||||
| ROA, Competitors2 | |||||||||||||||||||||||||||||
| Apple Inc. | |||||||||||||||||||||||||||||
| Arista Networks Inc. | |||||||||||||||||||||||||||||
| Cisco Systems Inc. | |||||||||||||||||||||||||||||
| Dell Technologies Inc. | |||||||||||||||||||||||||||||
Based on: 10-Q (reporting date: 2025-12-31), 10-Q (reporting date: 2025-09-30), 10-K (reporting date: 2025-06-30), 10-Q (reporting date: 2025-03-31), 10-Q (reporting date: 2024-12-31), 10-Q (reporting date: 2024-09-30), 10-K (reporting date: 2024-06-30), 10-Q (reporting date: 2024-03-31), 10-Q (reporting date: 2023-12-31), 10-Q (reporting date: 2023-09-30), 10-K (reporting date: 2023-06-30), 10-Q (reporting date: 2023-03-31), 10-Q (reporting date: 2022-12-31), 10-Q (reporting date: 2022-09-30), 10-K (reporting date: 2022-06-30), 10-Q (reporting date: 2022-03-31), 10-Q (reporting date: 2021-12-31), 10-Q (reporting date: 2021-09-30), 10-K (reporting date: 2021-06-30), 10-Q (reporting date: 2021-03-31), 10-Q (reporting date: 2020-12-31), 10-Q (reporting date: 2020-09-30).
1 Q2 2026 Calculation
ROA = 100
× (Net incomeQ2 2026
+ Net incomeQ1 2026
+ Net incomeQ4 2025
+ Net incomeQ3 2025)
÷ Total assets
= 100 × ( + + + )
÷ =
2 Click competitor name to see calculations.
The Return on Assets (ROA) exhibits a generally increasing trend over the observed period, punctuated by periods of stabilization and a recent decline. Initial values fluctuate around the 4.6% mark between September 2020 and December 2021. A significant upward trajectory begins in March 2022, accelerating through December 2022, reaching a peak of 18.81%.
- Initial Phase (Sep 2020 – Dec 2021)
- ROA demonstrates relative stability, ranging between 4.56% and 4.67%. This suggests consistent, though modest, profitability relative to the asset base during this timeframe. Fluctuations within this range are minimal.
- Growth Phase (Mar 2022 – Dec 2022)
- A substantial increase in ROA is evident, rising from 5.98% in March 2022 to 18.81% by December 2022. This period coincides with significant growth in both net income and total assets, but the increase in net income outpaced the growth in assets, driving the ROA higher. This indicates improved efficiency in utilizing assets to generate profit.
- Stabilization and Decline (Jan 2023 – Dec 2025)
- Following the peak in December 2022, ROA experiences a decline, though remaining positive. It decreases to 3.12% by March 2025, and then rises slightly to 4.00% by December 2025. This decline coincides with a more rapid expansion of total assets compared to net income. While net income continues to grow in absolute terms, the asset base expands at a faster rate, diluting the return on those assets. The most recent period shows a significant increase in total assets, while net income growth has slowed, resulting in a substantial decrease in ROA.
The pronounced increase in ROA during 2022 suggests a period of highly effective asset utilization. However, the subsequent decline indicates that while the company is growing, it is becoming less efficient in generating profit from its expanding asset base. The recent trend warrants further investigation to determine the underlying causes, such as changes in operational efficiency, investment strategies, or industry dynamics.