Super Micro Computer Inc (SMCI)

Payables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Cost of revenue	US$ in thousands	12,927,800	5,840,470	4,396,100	3,022,880	2,813,070
Payables	US$ in thousands	1,472,380	776,831	655,403	612,336	417,673
Payables turnover		8.78	7.52	6.71	4.94	6.74

June 30, 2024 calculation

Payables turnover = Cost of revenue ÷ Payables
= $12,927,800K ÷ $1,472,380K
= 8.78

Super Micro Computer Inc's payables turnover ratio has shown fluctuations over the past five years. The ratio was 6.74 in June 30, 2020, indicating that the company's payables were being turned over approximately 6.74 times during that year. However, in June 30, 2021, the ratio decreased to 4.94, suggesting that the company took longer to pay off its payables compared to the previous year.

Subsequently, there was an improvement in the payables turnover ratio, reaching 6.71 in June 30, 2022, and further increasing to 7.52 in June 30, 2023. This indicates that the company was able to manage its payables more efficiently during these periods.

Moreover, in June 30, 2024, the payables turnover ratio significantly improved to 8.78, demonstrating that Super Micro Computer Inc was paying off its payables at a faster rate, which could be a positive sign of effective working capital management and possibly good relationships with suppliers.

In conclusion, the trend in Super Micro Computer Inc's payables turnover ratio suggests variations in how efficiently the company is managing its payables. It is essential for the company to continue monitoring and improving this ratio to ensure effective cash flow management and relationships with its suppliers.