Super Micro Computer Inc (SMCI)

Activity ratios

Short-term

Turnover ratios

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Inventory turnover	2.98	2.91	4.04	2.84	2.90
Receivables turnover	5.45	5.60	6.20	6.23	7.67
Payables turnover	8.78	8.30	7.52	6.71	4.94
Working capital turnover	2.28	2.25	3.95	3.89	3.96

The activity ratios for Super Micro Computer Inc. over the period from June 30, 2021, to June 30, 2025, demonstrate notable trends in operational efficiency.

Inventory Turnover:
The inventory turnover ratio experienced a decline from 2.90 in 2021 to a low of 2.84 in 2022, indicating a slight slowdown in inventory sales relative to inventory levels. However, there was a significant improvement in 2023, with the ratio rising to 4.04, suggesting a more rapid movement of inventory. Subsequently, the ratio decreased again to 2.91 in 2024 but increased modestly to 2.98 in 2025. This pattern indicates fluctuations in inventory management efficiency, with a notable peak in 2023 that was not sustained in the following years.

Receivables Turnover:
Receivables turnover ratio exhibited a downward trend from 7.67 in 2021 to 6.20 in 2023, reflecting a gradual decline in the efficiency of receivables collection. The ratio further decreased to 5.60 in 2024 and slightly to 5.45 in 2025, indicating that the company has been taking longer to collect accounts receivable, which could impact cash flow and liquidity.

Payables Turnover:
The payables turnover ratio showed a consistent upward trajectory, increasing from 4.94 in 2021 to 8.78 in 2025. This suggests that the company has been extending its payment periods or managing payables more actively, potentially delaying payments to suppliers. The increasing trend reflects improved leverage or negotiations that have extended the time taken to pay suppliers.

Working Capital Turnover:
The working capital turnover ratio remained relatively stable from 3.96 in 2021 to 3.95 in 2023. However, there was a notable decline in 2024 to 2.25, with a slight recovery to 2.28 in 2025. This decrease indicates less efficient utilization of working capital to generate sales during the 2024 period, which could signify changes in operational efficiency or shifts in sales levels relative to working capital invested.

In summary, the activity ratios portray a period of operational adjustments. The inventory turnover improved significantly in 2023 before declining, receivables collection became somewhat less efficient over time, and accounts payable management improved markedly, while working capital efficiency experienced a dip in 2024 before stabilizing. These trends offer insights into the company's evolving operational dynamics over the analyzed period.

Average number of days

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Days of inventory on hand (DOH)	days	122.34	125.39	90.34	128.33	125.69
Days of sales outstanding (DSO)	days	66.95	65.18	58.84	58.62	47.59
Number of days of payables	days	41.57	43.95	48.55	54.42	73.94

The activity ratios for Super Micro Computer Inc., specifically the Days of Inventory on Hand (DOH), Days of Sales Outstanding (DSO), and Number of Days of Payables, reveal important trends over the period from June 30, 2021, to June 30, 2025.

Days of Inventory on Hand (DOH):
The DOH increased from approximately 125.69 days in 2021 to a peak of 128.33 days in 2022, indicating a period where inventory was held longer before sale. Subsequently, there was a notable decrease to 90.34 days in 2023, reflecting improved inventory management or faster inventory turnover. However, the ratio then rose again to over 125 days in 2024 and 2025, suggesting fluctuations in inventory holding periods. The lower inventory days in 2023 could indicate efforts to reduce excess inventory or respond to market conditions, while the subsequent rise points to possible shifts in inventory strategy or supply chain factors.

Days of Sales Outstanding (DSO):
DSO showed an increasing trend from 47.59 days in 2021 to 58.84 days in 2023, implying that the company was taking longer to collect receivables. From 2023 onward, DSO increased further to 65.18 days in 2024 and 66.95 days in 2025, indicating a continued elongation in the receivables collection cycle. This trend may reflect changes in credit policies, customer payment behavior, or industry conditions impacting collection efficiency.

Number of Days of Payables:
The days payable decreased from 73.94 days in 2021 to 54.42 days in 2022, and further to 48.55 days in 2023. This reduction suggests that the company was paying its suppliers more quickly over this period, possibly indicating a shift towards stricter payment terms or improved cash management. In 2024 and 2025, the payables period shortened slightly to around 43.95 and 41.57 days, respectively, continuing this trend of faster payables.

Summary:
Collectively, these ratios illustrate a period of operational adjustments for Super Micro Computer Inc. from 2021 through 2025. The fluctuations in inventory holding times and receivables collection periods suggest strategic shifts aimed at optimizing working capital. The decrease in days payables over the years indicates a tendency to settle obligations more promptly, potentially impacting cash flow management. The overall activity pattern points to efforts to streamline inventory and payable cycles while managing receivables, reflecting the company's adaptive response to market conditions and internal operational priorities.

Long-term

	Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Fixed asset turnover	—	—	24.54	18.17	12.95
Total asset turnover	1.53	1.50	1.94	1.62	1.59

The analysis of Super Micro Computer Inc’s long-term activity ratios reveals notable trends over the period from June 30, 2021, through June 30, 2023.

Fixed Asset Turnover Ratio: The ratio demonstrates a consistent upward trajectory, increasing from 12.95 in 2021 to 18.17 in 2022, and further rising to 24.54 in 2023. This indicates a significant improvement in the company's efficiency in utilizing its fixed assets to generate sales. The rising fixed asset turnover suggests that the company has become more effective in deploying its infrastructure and equipment to support its revenue growth, potentially through asset modernization, operational efficiency improvements, or better asset management.

Total Asset Turnover Ratio: The ratio shows a modest but steady upward trend, escalating from 1.59 in 2021 to 1.62 in 2022, and reaching 1.94 in 2023. This indicates an enhancement in the overall efficiency of asset utilization in generating sales. The increase, particularly from 2022 to 2023, is substantial, reflecting a possibly improved operational leverage or sales growth relative to total assets.

Regarding the projected figures for 2024 and 2025, the data are unavailable, indicating that assessments for those years cannot be conclusively made based on the current data. Nonetheless, the upward trends observed through 2023 suggest a positive trajectory in asset utilization efficiency.

In summary, Super Micro Computer Inc has demonstrated significant improvements in its long-term activity ratios over the recent period, particularly in the efficiency of fixed asset utilization and overall asset management. These trends point toward operational enhancements and strategic asset deployment aimed at maximizing sales generated per dollar of assets employed.