Super Micro Computer Inc (SMCI)

Inventory turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	12,927,800	12,831,100	5,840,470	4,396,100	3,022,880
Inventory	US$ in thousands	4,333,030	4,407,970	1,445,560	1,545,610	1,040,960
Inventory turnover		2.98	2.91	4.04	2.84	2.90

June 30, 2025 calculation

Inventory turnover = Cost of revenue ÷ Inventory
= $12,927,800K ÷ $4,333,030K
= 2.98

The inventory turnover ratio for Super Micro Computer Inc over the period from June 30, 2021, to June 30, 2025, exhibits notable fluctuations. At the end of fiscal year 2021, the ratio was 2.90, indicating that the company's inventory was sold and replaced approximately 2.9 times during that year. In the subsequent fiscal year 2022, the ratio slightly decreased to 2.84, suggesting a marginal slowdown in inventory turnover.

A significant increase is observed as of June 30, 2023, when the ratio rose to 4.04. This indicates an improvement in inventory management efficiency, with inventory being converted into sales approximately four times during that year. This uptick potentially reflects enhanced sales performance, better inventory control, or a strategic reduction of excess stock.

Following this peak, the ratio declines to 2.91 by June 30, 2024, returning to levels comparable to those observed in 2021, implying a slowdown in inventory turnover. The ratio then experiences a modest increase to 2.98 by June 30, 2025, suggesting a slight improvement but remaining below the peak seen in 2023.

Overall, the trend demonstrates periods of volatility in inventory management efficiency with a notable peak in 2023. The fluctuations could be attributable to changes in sales volumes, inventory management strategies, supply chain dynamics, or product mix adjustments. The recent ratios suggest that while inventory turnover has increased slightly from its 2024 lows, it remains below the elevated levels seen in 2023, indicating ongoing variability in how efficiently the company is managing its inventory.