Super Micro Computer Inc (SMCI)

Activity ratios

Short-term

Turnover ratios

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Inventory turnover	2.98	4.04	2.84	2.90	3.30
Receivables turnover	5.48	6.20	6.16	7.53	8.10
Payables turnover	8.78	7.52	6.71	4.94	6.74
Working capital turnover	2.28	3.95	3.89	3.96	3.77

Super Micro Computer Inc's inventory turnover ratio has fluctuated over the years, starting at 3.30 in June 2020 and reaching a peak of 4.04 in June 2023 before decreasing slightly to 2.98 in June 2024. This indicates the company's ability to sell and replenish its inventory efficiently.

The receivables turnover ratio has shown a decreasing trend, declining from 8.10 in June 2020 to 5.48 in June 2024. This suggests that the company is taking longer to collect payments from its customers, potentially impacting its cash flow.

In terms of payables turnover, Super Micro Computer Inc has seen an increasing trend from 6.74 in June 2020 to 8.78 in June 2024. This implies that the company is taking longer to pay its suppliers, which may improve its liquidity position but could strain supplier relationships.

The working capital turnover has also shown a decreasing trend from 3.77 in June 2020 to 2.28 in June 2024. This indicates a decline in the efficiency of utilizing working capital to generate revenue over the years.

Overall, the activity ratios of Super Micro Computer Inc suggest mixed efficiency in managing its inventory, receivables, payables, and working capital turnover, highlighting areas that may require further attention and optimization for improved financial performance.

Average number of days

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Days of inventory on hand (DOH)	days	122.34	90.34	128.33	125.69	110.48
Days of sales outstanding (DSO)	days	66.66	58.84	59.21	48.48	45.08
Number of days of payables	days	41.57	48.55	54.42	73.94	54.19

Super Micro Computer Inc's Days of Inventory on Hand (DOH) increased from 110.48 days in June 2020 to 128.33 days in June 2022 before decreasing to 122.34 days in June 2024. This indicates that the company took longer to sell its inventory, potentially tying up more capital in inventory.

On the other hand, the Days of Sales Outstanding (DSO) increased from 45.08 days in June 2020 to 66.66 days in June 2024. This suggests that Super Micro Computer Inc is taking more time to collect payments from its customers, which could affect its cash flow and liquidity position.

In terms of the Number of Days of Payables, Super Micro Computer Inc had fluctuations over the years, ranging from 41.57 days in June 2024 to 73.94 days in June 2021. A decrease in the number of days of payables could indicate the company is paying its suppliers more quickly, possibly putting pressure on its working capital position.

Overall, the activity ratios suggest that Super Micro Computer Inc may have some inefficiencies in managing its inventory, accounts receivable, and accounts payable, which could impact its liquidity and operational efficiency.

Long-term

	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Fixed asset turnover	36.21	24.54	18.17	12.95	14.28
Total asset turnover	1.53	1.94	1.62	1.59	1.74

The analysis of Super Micro Computer Inc's long-term activity ratios indicates a positive trend in efficiency and asset utilization over the years.

1. Fixed Asset Turnover:
- The fixed asset turnover ratio measures how effectively the company is using its fixed assets to generate revenues.
- From June 30, 2020 to June 30, 2024, the fixed asset turnover ratio has shown a consistent improvement from 14.28 to 36.21.
- This indicates that Super Micro Computer Inc has been able to generate significantly higher revenues per dollar of fixed assets invested, reflecting operational efficiency and better utilization of fixed assets over the years.

2. Total Asset Turnover:
- The total asset turnover ratio assesses the company's ability to generate sales from its total assets.
- The total asset turnover ratio fluctuated over the period analyzed, with a slight decrease from 1.74 on June 30, 2020 to 1.53 on June 30, 2024.
- Despite the fluctuations, the company has maintained a relatively stable level of generating revenue relative to its total assets.
- The ratio peaked at 1.94 on June 30, 2023, indicating a strong performance in utilizing its total assets efficiently to generate sales.

Overall, the trend in both fixed asset turnover and total asset turnover ratios demonstrates Super Micro Computer Inc's effectiveness in utilizing its assets to generate revenues. The significant improvement in fixed asset turnover underlines the company's focus on operational efficiency and asset management, while the relatively stable total asset turnover reflects the company's ability to effectively generate sales from its total asset base.