Super Micro Computer Inc (SMCI)

Inventory turnover

		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	Jun 30, 2020	Mar 31, 2020
Cost of revenue (ttm)	US$ in thousands	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	2,813,071	2,762,662
Inventory	US$ in thousands	3,596,140	4,930,620	4,333,030	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	851,498	866,226
Inventory turnover		5.07	3.31	2.98	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	3.30	3.19

December 31, 2024 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $18,230,880K ÷ $3,596,140K
= 5.07

The inventory turnover ratio of Super Micro Computer Inc has fluctuated over the past few years, indicating varying efficiency in managing its inventory. The ratio has ranged from a low of 2.41 in March 31, 2024, to a high of 5.07 in December 31, 2024. Generally, a higher inventory turnover ratio is preferred as it signifies that the company is selling its inventory more quickly.

The company experienced a decline in inventory turnover from March 31, 2022, to June 30, 2022, but saw an increase in the subsequent quarters. Notably, the ratio peaked in December 31, 2024, indicating improved efficiency in managing inventory at that time.

It is important for Super Micro Computer Inc to closely monitor its inventory turnover ratio to ensure optimal management of inventory levels and avoid overstocking or understocking. Additionally, analyzing the factors contributing to fluctuations in the ratio can help the company make informed decisions regarding inventory management strategies.