Super Micro Computer Inc (SMCI)

Inventory turnover

		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	Mar 31, 2020	Dec 31, 2019	Sep 30, 2019	Jun 30, 2019	Mar 31, 2019
Cost of revenue (ttm)	US$ in thousands	7,736,680	6,101,850	5,840,470	5,375,430	5,463,210	5,006,120	4,396,111	3,971,465	3,599,609	3,285,140	3,022,884	2,872,019	2,738,203	2,776,531	2,813,071	2,762,662	2,754,786	2,825,834	3,004,838	2,874,873
Inventory	US$ in thousands	2,467,000	2,052,800	1,445,560	1,540,420	1,421,820	1,736,060	1,545,610	1,588,540	1,393,670	1,184,570	1,040,960	903,903	807,431	773,856	851,498	866,226	704,430	685,231	670,188	761,113
Inventory turnover		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	3.19	3.91	4.12	4.48	3.78

December 31, 2023 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $7,736,680K ÷ $2,467,000K
= 3.14

Super Micro Computer Inc's inventory turnover has exhibited fluctuations over the past eight quarters. In Q2 2024, the inventory turnover stood at 3.14, indicating that the company generated sales approximately 3.14 times over during that period. This was higher than the previous quarter's value of 2.97, suggesting an improvement in the efficiency of managing inventory.

Looking at the trend over the past year, there was a noticeable peak in Q4 2023 with an inventory turnover of 4.04, demonstrating a significant efficiency in converting inventory into sales. However, this was followed by a slight decrease in Q1 2024 to 2.97.

Comparing to the same quarter in the previous year, there has been a general upward trend in inventory turnover, with Q2 2024 significantly higher than Q2 2023's value of 3.84. This indicates that Super Micro Computer Inc has been more effective in managing its inventory levels and turning them into revenue.

Overall, the company's inventory turnover has shown variability but appears to be on an increasing trend in the recent quarters, implying potential improvements in inventory management efficiency and better utilization of resources.