Super Micro Computer Inc. (NASDAQ:SMCI)

Gross Profit Margin

The gross profit margin demonstrates a fluctuating trend starting from 15.76% in September 2020, with a slight decline reaching 13.68% by December 2021. Subsequently, it increased gradually, peaking at 18.23% in March 2023. Thereafter, a steady decline is observed, reaching 11.06% by June 2025. This pattern suggests periods of both margin expansion and contraction, with a notable downward trend in the latest quarters.

Operating Profit Margin

Operating profit margin showed steady growth from 2.57% in September 2020 through to a peak of 10.68% in March 2023. Following this peak, a declining trend is evident, falling to 5.7% by June 2025. The increase in earlier periods indicates improved operating efficiency or cost management, while the later decline points to rising operational challenges or cost pressures.

Net Profit Margin

Net profit margin mirrors the operating margin's trajectory, beginning at 2.52% in September 2020 and growing steadily to reach 8.98% in March 2023. Post-peak performance reveals a decreasing trend, declining to 4.77% by June 2025. This pattern indicates initial gains in overall profitability followed by a contraction phase, possibly due to increased expenses or reduced revenue quality in later periods.

Return on Equity (ROE)

ROE exhibited a significant upward trend from 7.91% in September 2020 to a high of 33.21% in June 2023. After this peak, ROE declined consistently, falling to 16.64% by June 2025. The early increase reflects enhanced return generation on shareholders' equity, potentially through improved profitability or leverage, while the subsequent decline suggests a normalization or reduction in relative equity efficiency.

Return on Assets (ROA)

ROA rose from 4.39% in September 2020 to a peak of 18.81% in March 2023, signaling greater efficiency in asset utilization over this period. After the peak, there is a downward movement, reaching 7.48% by June 2025. This decline highlights challenges in sustaining asset profitability, possibly due to higher asset base without proportional income generation or lower operational effectiveness.

The financial data reveals several notable trends in the gross profit, net sales, and gross profit margin over the periods analyzed.

Gross Profit

Gross profit demonstrates substantial fluctuations, with initial values around 130 million US dollars in late 2019 and early 2020. There is a noticeable upward trend beginning in the first quarter of 2022, where gross profit increases significantly from approximately 210 million US dollars to a peak of over 775 million US dollars by the third quarter of 2024. The data indicates a particularly sharp rise from late 2021 to mid-2024, followed by some volatility in the subsequent quarters but generally maintaining high levels.

Net Sales

Net sales values also exhibit fluctuations but illustrate a marked growth trend over the same period. Starting at roughly 800 million US dollars in late 2019 and fluctuating around 700-1,000 million in the early quarters, net sales rise sharply after 2021, peaking around 5.9 billion US dollars in late 2024. The subsequent periods show a decline but net sales remain elevated compared to earlier years, signaling significant expansion in sales volumes or pricing.

Gross Profit Margin

Gross profit margin percentages are available only from mid-2020 onwards. Initially stable within a range of approximately 15% to 18%, margins show a peak near 18.23% in early 2023. Following this peak, margins exhibit a consistent downward trend, declining to approximately 11% by mid-2025. This decline suggests decreasing profitability of sales despite the increasing absolute gross profit values, possibly due to rising costs or pricing pressures affecting margins.

In summary, the company experiences strong growth in both gross profit and net sales over the observed quarters, especially from 2021 onwards. However, the gross profit margin declines notably after reaching a peak, indicating potential challenges in sustaining profit levels relative to sales. This pattern suggests expansion in scale but increasingly pressured profitability ratios.

Income from Operations

The income from operations exhibits significant volatility over the observed periods. Initially, it declined from 32,865 thousand USD in September 2019 to a low of 9,428 thousand USD by June 2020. Subsequently, the income fluctuated, reaching peaks such as 165,213 thousand USD in June 2022 and notably 371,464 thousand USD in June 2024. However, the figures do not show a consistent upward trend, with intermittent declines for example, the drop from 378,314 thousand USD in September 2024 to 146,780 thousand USD in March 2025.

Net Sales

Net sales show a general increasing trend across the periods, growing from 799,804 thousand USD in September 2019 to as high as 5,937,256 thousand USD in September 2024. This represents a substantial expansion in revenue capacity. Despite fluctuations in quarterly performance, the overall trajectory is positive, reflecting strong growth. Occasional dips occurred, such as a decrease from 5,937,256 thousand USD in September 2024 to 4,599,913 thousand USD in December 2024, followed by a rebound in the next quarter.

Operating Profit Margin

The operating profit margin was not consistently reported in the early periods but is visible from June 2020 onwards. The margin initially ranged around 2.5% to 3.5% through 2020 and 2021 but improved steadily to reach approximately 10.7% by March to June 2023. After peaking, the margin gradually declined to 5.7% by June 2025. This pattern suggests that profitability relative to sales strengthened substantially during the middle of the observation period before easing back somewhat.

Integrated Observations

The data reveals a pattern where net sales have grown robustly over the years, indicating sustained revenue growth. Income from operations, while growing, is more volatile and does not increase in strict correlation with sales, suggesting possible variability in operational efficiency or cost structure. The operating profit margin’s rise to double-digit levels in 2023 shows periods of enhanced profitability, but the subsequent decline points to emerging pressures on operating efficiency or cost control. Overall, the financial trends reflect strong sales momentum tempered by fluctuating operational profitability.

The quarterly financial data reveals several notable trends in the company's performance over the analyzed periods.

Net Income

The net income figures demonstrate significant volatility with an overall upward trajectory. Starting from approximately 26.3 million USD in September 2019, the net income showed fluctuations in the earlier quarters, reaching a peak of about 419.0 million USD in September 2023. Some quarters display sharp increases, such as between June 2021 and June 2022, and again between June 2023 and December 2023. However, there are also noticeable declines after peak quarters, indicating periods of reduced profitability or higher expenses.

Net Sales

Net sales showed a broadly increasing trend over the period. Beginning around 799.8 million USD in September 2019, sales generally rose each year, with some seasonal or cyclical fluctuations. There was a marked acceleration in sales from the mid-2022 period onward, with net sales reaching upward of 5.9 billion USD by December 2024. Some quarters, such as between the first half of 2023 and into 2024, experienced particularly strong sales growth, indicating increasing demand or market expansion.

Net Profit Margin

The net profit margin data, though incomplete in the initial periods, reflects a positive development in profitability relative to sales. The margin rose from around 2.52% in mid-2020 to reach a peak above 8.98% in mid-2022, maintaining high levels through much of 2022 and 2023. Following this peak, margins experienced a gradual decline, falling to 4.77% by mid-2025. This pattern suggests improving operational efficiency or pricing power through 2022 and early 2023, followed by pressure on profit margins potentially due to cost increases or competitive factors in the later periods.

In summary, the company experienced strong growth in sales accompanied by increasing profitability through mid-2022 and 2023. However, the latter part of the analyzed period reveals some softness in profit margins despite continuing high sales, highlighting potential challenges in cost management or pricing strategies moving forward. The overall trend underscores a growth-oriented phase with recent margin compression warranting further attention.

Net Income

The net income demonstrates significant fluctuations over the observed period. Initially, from late 2019 through mid-2020, net income experienced variability, dropping from 26,345 thousand USD to a low of 15,807 thousand USD and then recovering to 27,674 thousand USD by the end of 2020. In 2021, net income generally increased, peaking notably at 41,932 thousand USD in December. The upward trend became more pronounced in 2022 and early 2023, with net income reaching a peak of 184,416 thousand USD by September 2022. However, net income showed volatility afterward with some declines seen in early and mid-2023 before rising again sharply at the end of 2023 and into 2024, reaching a high of 424,327 thousand USD in March 2025. The data suggests strong overall growth with recurring short-term fluctuations likely influenced by external or internal operational factors.

Total Stockholders' Equity

Stockholders’ equity exhibited a steady growth trend throughout the entire period. Starting at 971,694 thousand USD in September 2019, equity increased gradually with minor fluctuations, crossing one million and subsequently continuing its upward trajectory. By the end of 2021, equity had risen to 1,186,668 thousand USD and continued accelerating through 2022 and 2023, eventually reaching over three million USD by September 2023. The growth became more substantial from late 2023 onwards, nearly doubling by early 2025 to exceed 6 billion USD. This upward progression indicates a strengthening capital base and potential reinvestment of earnings, supporting growth initiatives and stability.

Return on Equity (ROE)

Return on Equity data is partially available beginning mid-2020 and displays an overall increasing trend with some periods of correction. Starting near 7.91% in mid-2020, ROE increased steadily reaching 14.41% by mid-2021. Subsequently, it climbed more rapidly, reflecting enhanced profitability relative to equity, peaking at 33.21% in March 2023. Following this peak, ROE experienced a gradual decline, settling around 16.64% by June 2025. Despite this downtrend in the latter periods, the ROE levels remain historically strong, implying efficient management of equity in generating profit, though recent moderation suggests a normalization or possible changes in profitability or equity structure.

Overall Financial Trends

The combined analysis of net income, stockholders' equity, and ROE indicates a company experiencing substantial growth in both profitability and equity capital over the period under review. Net income growth supports increasing returns, albeit with notable volatility, possibly reflecting market conditions or operational adjustments. The robust and consistent expansion of stockholders' equity highlights strong capitalization efforts. While ROE improvements align with profitability gains, the peak in early 2023 followed by a decrease may indicate evolving dynamics in company efficiency or market environment challenges. The financial trends suggest a generally positive trajectory with signs of maturation and occasional performance variability.

The financial data demonstrates distinct trends across multiple key metrics over the observed periods. Net income exhibits considerable volatility with an overall upward trajectory, particularly pronounced starting in early 2022. Initial net income values fluctuated modestly below 30,000 thousand US dollars until the end of 2020, followed by a phase of significant growth in 2021 and 2022, reaching a peak above 420,000 thousand US dollars in the first quarter of 2025. However, intermittent declines in certain quarters suggest variability in profitability despite the general positive trend.

Total assets consistently increased throughout the timeline, signaling expansion in the company’s asset base. Beginning at approximately 1.7 billion US dollars in late 2019, total assets grew steadily with occasional acceleration, notably surpassing 5.4 billion US dollars by mid-2023 and almost tripling to over 14 billion US dollars by mid-2025. This sustained growth implies ongoing investments or asset acquisitions, supporting potential operational scaling or strategic initiatives.

Return on Assets (ROA) data, available from mid-2020 onward, reflects an improving efficiency in asset utilization to generate earnings. ROA commenced around 4.4% and increased gradually with some fluctuations, culminating in a peak of approximately 18.8% in early 2023. Following this peak, ROA demonstrates a declining trend into mid-2025, though it remains significantly higher than initial values. The elevated ROA levels in 2022 and 2023 indicate improved profitability relative to assets during this period, but the subsequent decline might suggest growing challenges in maintaining asset efficiency despite continued asset growth.

In summary, the company shows marked growth in net income and total assets over the analyzed quarters, with operational efficiency (as reflected in ROA) improving substantially before receding somewhat in the latest periods. The increasing total assets reflect capital accumulation or investment, while the variability in net income and ROA underscores potential fluctuations in operational performance or market conditions influencing profitability and asset utilization efficiency.