Super Micro Computer Inc (SMCI)

Days of sales outstanding (DSO)

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Receivables turnover		5.48	6.20	6.16	7.53	8.10
DSO	days	66.66	58.84	59.21	48.48	45.08

June 30, 2024 calculation

DSO = 365 ÷ Receivables turnover
= 365 ÷ 5.48
= 66.66

Based on the data provided, Super Micro Computer Inc's days of sales outstanding (DSO) have shown an upward trend over the past five years.

As of June 30, 2020, the DSO was at 45.08 days, signaling that on average, it took the company about 45 days to collect its accounts receivable. The DSO then increased to 48.48 days by June 30, 2021, indicating a slight deterioration in its collection efficiency.

The trend continued in the following years, with June 30, 2022 and June 30, 2023, showing further increases in the DSO to 59.21 days and 58.84 days, respectively. This suggests that the company may be taking longer to collect payments from its customers, potentially impacting its cash flow and liquidity.

By June 30, 2024, the DSO had risen to 66.66 days, reaching the highest level in the five-year period analyzed. This prolonged collection period could indicate potential issues with credit management or the company's customer base.

Overall, the increasing trend in Super Micro Computer Inc's DSO warrants further investigation into its accounts receivable management practices and potential impacts on its financial performance and working capital efficiency.