Super Micro Computer Inc (SMCI)
Number of days of payables
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Payables turnover | 7.52 | 6.71 | 4.94 | 6.74 | 8.34 | |
| Number of days of payables | days | 48.55 | 54.42 | 73.94 | 54.19 | 43.79 |
June 30, 2023 calculation
Number of days of payables = 365 ÷ Payables turnover
= 365 ÷ 7.52
= 48.55
The number of days of payables for Super Micro Computer Inc has exhibited fluctuations over the past five years. In the fiscal year ending June 30, 2023, the company recorded a notable decrease in the number of days of payables to 48.55 days from 54.42 days in the prior year. This reduction suggests that the company took fewer days to pay its trade payables, indicating a potentially more efficient management of its accounts payable obligations.
Comparing to the historical trend, the number of days of payables for the fiscal year 2023 is lower than the figures reported in 2021 and 2020, but higher when compared to 2019. A lower number of days of payables generally signals a positive liquidity position for the company, as it implies that the company is taking less time to settle its outstanding payables. This may be indicative of improved financial management or negotiation of more favorable payment terms with suppliers. However, it is essential to consider the reasons behind this change and its potential impact on the company's relationships with suppliers and cash flow management.
In summary, the decrease in the number of days of payables for Super Micro Computer Inc in 2023 indicates potential improvements in its accounts payable management and liquidity position compared to the previous year. However, further analysis and consideration of the company's financial and operational factors are necessary to fully assess the implications of this change.
Peer comparison
Jun 30, 2023