Super Micro Computer Inc (SMCI)

Inventory turnover

		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	Jun 30, 2020
Cost of revenue (ttm)	US$ in thousands	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	2,813,071
Inventory	US$ in thousands	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	851,498
Inventory turnover		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	3.30

March 31, 2025 calculation

Inventory turnover = Cost of revenue (ttm) ÷ Inventory
= $19,137,880K ÷ $3,870,240K
= 4.94

The inventory turnover ratio for Super Micro Computer Inc. exhibits notable fluctuation over the analyzed period from June 30, 2020, to March 31, 2025. Starting at a ratio of 3.30 during June 2020, the metric generally fluctuated in the range of approximately 2.50 to 3.84 until the end of 2022, indicating a relatively moderate rate of inventory liquidation relative to sales.

A decline is observed in late 2021 to early 2022, with the ratio decreasing to 2.50 by March 2022, signaling a slowdown in the efficiency of inventory management or a buildup of inventory levels possibly attributable to supply chain dynamics or changing sales patterns. Subsequently, the ratio increased again, reaching a peak of 5.07 at the end of December 2024, which suggests a significant improvement in inventory turnover, possibly due to management efforts to optimize inventory levels or an increase in sales velocity.

By March 2025, the ratio slightly decreased to 4.94 but remains elevated compared to earlier periods, indicating ongoing efficiency in inventory management. This upward trend toward higher inventory turnover ratios in late 2024 and early 2025 may reflect strategic adjustments aimed at reducing inventory holding costs and improving cash flow.

Overall, Super Micro Computer Inc.'s inventory turnover has exhibited periods of both decline and recovery, with a substantial upward trend in late 2024 and early 2025, implying improved inventory management efficiency and potentially healthier sales performance in the recent fiscal periods.