Super Micro Computer Inc (SMCI)

Inventory turnover

		Jun 30, 2025	Mar 31, 2025	Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	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
Cost of revenue (ttm)	US$ in thousands	19,542,130	19,137,880	18,230,880	16,323,540	12,927,840	9,932,440	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
Inventory	US$ in thousands	4,680,380	3,870,240	3,596,140	4,930,620	4,407,970	4,124,590	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
Inventory turnover		4.18	4.94	5.07	3.31	2.93	2.41	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

June 30, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,542,130K ÷ $4,680,380K
= 4.18

The inventory turnover ratio for Super Micro Computer Inc. exhibits notable fluctuations over the analyzed period. Initially, the ratio declined from 3.59 at September 30, 2020, to a low of 2.50 by March 31, 2022, indicating a period of slower inventory movement or increased inventory accumulation relative to sales. This downward trend could suggest challenges in inventory management, declining demand, or higher inventory levels that are not immediately being sold.

From March 31, 2022, onward, the ratio shows signs of recovery, reaching as high as 3.84 at December 31, 2022, and peaking at 5.07 on December 31, 2024. These peaks suggest periods where inventory was turned over more rapidly, possibly reflecting improved sales efficiency, better inventory management practices, or increased demand for products. Notably, the ratio temporarily dips to 2.97 on September 30, 2023, before rising again, indicating some volatility in inventory management efficiency during this period.

Overall, the trend demonstrates periods of both deterioration and recovery in inventory management efficiency. The recent increase toward the end of 2024 and into mid-2025 indicates an improvement in inventory turnover, potentially reflecting more effective inventory control or stronger sales performance. This pattern underscores the importance of monitoring inventory levels and turnover ratios to assess operational efficiency and inventory management effectiveness over time.