Super Micro Computer Inc (SMCI)

Payables 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
Payables	US$ in thousands	643,050	549,323	1,682,970	1,545,050	1,092,440	1,261,530	1,084,060	776,831	641,839	559,962	785,025	655,403	779,561	695,180	564,628	612,336	465,012	396,288	333,359	417,673
Payables turnover		29.76	33.19	9.70	8.37	9.09	6.13	5.63	7.52	8.38	9.76	6.38	6.71	5.09	5.18	5.82	4.94	6.18	6.91	8.33	6.74

March 31, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,137,880K ÷ $643,050K
= 29.76

The payables turnover ratio of Super Micro Computer Inc. has exhibited notable fluctuations over the period from June 2020 to March 2025. Initially, in June 2020, the ratio stood at 6.74, indicating that the company paid its accounts payable approximately 6.7 times during the year. This ratio increased modestly to 8.33 by September 2020, suggesting an improvement in the company's ability to settle its payables more rapidly within that quarter.

Throughout 2021, the ratio maintained a generally stable or slightly declining pattern, with values oscillating between approximately 4.94 in June 2021 to 5.82 in September 2021, and 5.18 by the end of December 2021. This indicates a relatively consistent支付 pace with some minor fluctuations, possibly reflecting operational or strategic changes.

In the first half of 2022, the payables turnover saw slight variation: 5.09 in March 2022, rising again to 6.71 in June 2022 and then stabilizing at around 6.38 in September 2022 before increasing sharply to 9.76 at the end of 2022. This marked a significant rise, indicating an expedited payment cycle to suppliers at the end of 2022.

The early months of 2023 saw the ratio decrease slightly to 8.38 in March, then a decline to 7.52 by June, and further down to 5.63 in September. By December 2023, there was a modest increase to 6.13, followed by another rise to 9.09 in March 2024, suggesting periods of accelerated and decelerated payable settlements.

In 2024, the ratio generally trended upward again, reaching 8.37 in June and peaking at 9.70 in September, reflecting faster payment cycles. However, a remarkable shift occurred at the end of 2024, with the ratio surging to 33.19 in December, and maintaining a high level of 29.76 in March 2025. These extraordinary values denote an abrupt and substantial acceleration in the company's payable settlement activity, possibly indicative of strategic supplier negotiations, early payments, or accounting adjustments.

Overall, the company's payables turnover has shown variability, with periods of moderate settlement activity interspersed with episodes of rapid payment cycles, especially towards the end of the observed period. The recent drastic increase in the ratio suggests a significant change in payment practices or financial policy, warranting further investigation into underlying causes such as supplier relationship management, cash flow strategies, or accrual adjustments.