Aug. 9 at 9:43 PM
$SMCI I think the easiest way to see if value was added is look at total equity from Q2 to Q3. This number is quite literally derived from everything about the company, loans, short term debt, payables, receivables etc, the whole shebang.
If total equity was positive they added to their topline, if negative they lost money. The lost money could be explained by an investment into an income generating asset that still has yet to come online, but essentially its a quick snap of if they gained or lost anything, from there you can explain the rest going forward.
SMCI in Q2 had total equity of
$6.99B in Q3 they had
$7.58B. So the business DID NOT lose anything, not the way bears are making it sound like.
If you look at peers like
$DELL what have they done in the past 10 years? They reduced total equity from
$19B in 2016 to a negative figure in 2025, could be explainable by investments etc, but their payables actually provide alot of this explanation.
