Super Micro Computer Inc (SMCI)

Payables turnover

		Jun 30, 2025	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
Cost of revenue (ttm)	US$ in thousands	19,542,130	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
Payables	US$ in thousands	1,281,980	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
Payables turnover		15.24	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

June 30, 2025 calculation

Payables turnover = Cost of revenue (ttm) ÷ Payables
= $19,542,130K ÷ $1,281,980K
= 15.24

The payables turnover ratio of Super Micro Computer Inc. exhibits notable fluctuations over the examined period, reflecting varying accounts payable management and procurement practices.

From September 30, 2020, to March 31, 2021, the ratio gradually declined from 8.33 to 6.18, indicating a moderate decrease in the frequency with which the company paid off its accounts payable. This suggests an elongation in payment periods or slower payments to suppliers during this interval.

The most pronounced drop occurred between June 30, 2021, and September 30, 2021, where the ratio increased slightly from 4.94 to 5.82, and persisted at similar levels through December 31, 2021 (5.18) and March 31, 2022 (5.09). These values suggest a stabilization at a relatively lower turnover, implying that the company was extending its payables more comfortably during this period, possibly leveraging supplier credit terms.

A subsequent increase in the ratio became evident at June 30, 2022, reaching 6.71, and it remained relatively stable through September 2022 (6.38). Moving into late 2022, a significant jump appeared at December 31, 2022, where the ratio surged to 9.76, indicating a notably higher frequency of payments or shorter payable periods. This could reflect an effort to reduce outstanding liabilities or improved vendor payment practices.

In early 2023, the ratio declined slightly to 8.38 (March 31) and further to 7.52 (June 30), before decreasing to 5.63 at September 30, 2023. This reduction suggests a temporary elongation of payment periods during this phase, possibly due to strategic changes in cash management or supplier negotiations.

The ratio then exhibited a sharp increase again at December 31, 2023, reaching 6.13, and escalated considerably by March 31, 2024, to 9.09, indicating a return to faster payment cycles. This upward trend continued into June 30, 2024, with a ratio of 8.37, and further rose at September 30, 2024, to 9.70. The peak in December 2024 at 33.19 signifies an extraordinary acceleration in payable turnover, which might be attributable to a significant change in payment strategies, extraordinary supplier arrangements, or adjustments in operational liquidity.

Finally, a marked decline was observed in 2025, with the ratios decreasing to 29.76 in March and further to 15.24 in June. While still elevated compared to earlier years, this indicates a moderation in payment frequency relative to the peaks observed at the end of 2024.

Overall, the company's payables turnover ratio has demonstrated considerable variability, reflecting dynamic management of accounts payable in response to operational, strategic, and possibly external financial conditions. The periods of sharp increases suggest phases of more immediate payments to suppliers, whereas declines indicate extended payment periods, aligning with typical supplier credit management practices.