Super Micro Computer Inc (SMCI)

Days of sales outstanding (DSO)

		Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020	Jun 30, 2019
Receivables turnover		6.20	6.16	7.53	8.10	8.60
DSO	days	58.84	59.21	48.48	45.08	42.45

June 30, 2023 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 6.20
= 58.84

The days of sales outstanding (DSO) for Super Micro Computer Inc have fluctuated over the past five years. As of June 30, 2023, the DSO stands at 58.84 days, indicating that on average, it takes Super Micro Computer Inc approximately 58.84 days to collect its accounts receivable.

Comparing this to previous years, there was a notable increase from 2022 to 2023, with the DSO rising from 68.32 days to 58.84 days. This suggests that the company took longer to collect its outstanding sales during the most recent period.

It is important to note that a higher DSO can indicate that a company is struggling to collect its receivables in a timely manner, potentially affecting its cash flow and liquidity. Therefore, Super Micro Computer Inc may need to focus on improving its accounts receivable management processes to reduce the DSO and enhance its cash conversion cycle.