Super Micro Computer Inc (SMCI)

Days of sales outstanding (DSO)

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Receivables turnover		5.45	5.60	6.20	6.23	7.67
DSO	days	66.95	65.18	58.84	58.62	47.59

June 30, 2025 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.45
= 66.95

The data indicates that Super Micro Computer Inc's Days of Sales Outstanding (DSO) experienced a notable increase over the period from June 30, 2021, to June 30, 2025. Specifically, the DSO was 47.59 days as of June 30, 2021, reflecting a relatively efficient collection cycle. By June 30, 2022, the DSO had increased to 58.62 days, signaling a decline in receivables collection efficiency. This upward trend continued, with the DSO reaching 58.84 days on June 30, 2023, indicating stabilization at a higher level but still above the 2021 figure.

Further, the DSO continued to lengthen, reaching 65.18 days as of June 30, 2024. The most recent data point shows a DSO of 66.95 days as of June 30, 2025. This sustained growth suggests that the company is taking longer to convert its receivables into cash, which could have implications for its working capital and cash flow management.

Overall, the progressive increase in DSO over this period points to a trend of extended credit periods or potential difficulties in receivables collection. While an elevated DSO may reflect strategic customer credit terms, persistent increases can also indicate challenges in receivables management, potentially impacting liquidity and financial flexibility if the trend continues.