Super Micro Computer Inc (SMCI)

Payables turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Cost of revenue	US$ in thousands	19,542,100	12,831,100	5,840,470	4,396,100	3,022,880
Payables	US$ in thousands	1,281,980	1,545,050	776,831	655,403	612,336
Payables turnover		15.24	8.30	7.52	6.71	4.94

June 30, 2025 calculation

Payables turnover = Cost of revenue ÷ Payables
= $19,542,100K ÷ $1,281,980K
= 15.24

The payables turnover ratio of Super Micro Computer Inc demonstrates a consistent upward trajectory over the period from June 30, 2021, to June 30, 2025. Specifically, the ratio increased from 4.94 in 2021 to 6.71 in 2022, reflecting a significant improvement in the company's efficiency in settling its accounts payable obligations relative to its credit purchases. This upward trend continues with ratios of 7.52 in 2023, 8.30 in 2024, and reaching 8.78 in 2025.

The increasing payables turnover ratio indicates that the company is paying its suppliers more frequently or more promptly over time. This trend may suggest better management of working capital, potentially improved supplier relationships, or a deliberate effort to reduce outstanding payables. It could also imply an increase in purchase volumes or a change in credit terms that incentivizes faster payments.

Overall, the progressive rise in the payables turnover ratio signifies enhanced operational efficiency and a possible strategic shift towards quicker payment cycles, contributing to improved liquidity management within the organization.