Super Micro Computer Inc (SMCI)

Days of inventory on hand (DOH)

		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	Jun 30, 2020
Inventory turnover		4.94	5.07	3.31	2.93	2.41	3.14	2.97	4.04	3.49	3.84	2.88	2.84	2.50	2.58	2.77	2.90	3.18	3.39	3.59	3.30
DOH	days	73.81	72.00	110.25	124.45	151.57	116.39	122.79	90.34	104.60	94.99	126.58	128.33	146.00	141.32	131.61	125.69	114.88	107.63	101.73	110.48

March 31, 2025 calculation

DOH = 365 ÷ Inventory turnover
= 365 ÷ 4.94
= 73.81

The analysis of Super Micro Computer Inc.'s days of inventory on hand (DOH) over the specified periods reveals notable fluctuations and trends.

During the initial periods extending to the end of fiscal 2020, DOH demonstrated a declining trend, decreasing from approximately 110.48 days as of June 30, 2020, to about 101.73 days by September 30, 2020, and further to 107.63 days at the end of December 2020. This indicates an improvement in inventory management or faster inventory turnover during that timeframe.

In the subsequent quarters, the DOH experienced an upward movement, peaking at roughly 141.32 days at the end of December 2021, and reaching even higher levels, with a value of approximately 146.00 days by the end of March 2022. This increasing trend suggests a buildup of inventory levels, potentially reflecting supply chain delays, increased inventory holdings due to strategic stockpiling, or challenges in matching inventory turnover with sales demand during that period.

From mid-2022 onwards, there was a discernible decline in DOH, reaching a low of about 94.99 days at the end of December 2022, which indicates improved inventory efficiency or increased sales velocity. However, the subsequent quarters saw some fluctuations, with an upward movement to approximately 122.79 days by September 2023, before decreasing again to around 72.00 days at the end of December 2024—a significant reduction, indicating a period of improved inventory turnover or tighter inventory controls.

Overall, the data reflects a pattern of rising DOH through 2021 into early 2022, followed by a period of inventory reduction intensifying into 2024. These fluctuations could be influenced by changes in market demand, supply chain conditions, production strategies, or inventory management policies adopted by the company. The recent notable decrease in DOH at the end of 2024 suggests a move towards more efficient inventory management or a response to shifting sales or supply chain factors.