Super Micro Computer Inc (SMCI)

Activity ratios

Short-term

Turnover ratios

	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
Inventory turnover	4.18	4.94	5.07	3.31	2.93	2.41	3.14	2.97	4.04	3.49	3.84	2.88	2.84	2.50	2.58	2.77	2.90	3.18	3.39	3.59
Receivables turnover	9.25	8.12	6.80	6.88	5.62	7.16	6.16	8.74	6.20	9.78	8.65	8.17	6.23	6.81	8.38	8.36	7.67	8.31	10.10	10.23
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
Working capital turnover	2.17	2.67	2.85	2.69	2.25	1.86	3.25	3.76	3.95	4.05	3.84	3.94	3.89	3.91	3.81	4.09	3.96	3.95	3.74	3.71

The analysis of Super Micro Computer Inc.'s activity ratios over the specified periods reveals significant trends and fluctuations across various operational efficiency metrics.

Inventory Turnover: The data indicates a decline in inventory turnover from September 2020 (3.59) towards a low in early 2023 (around 2.41), suggesting a period of increased holding periods or slower inventory movement. Subsequently, there was a recovery and upward trend peaking at 5.07 in December 2024 before a slight decline to 4.94 in March 2025. The ratio’s fluctuations imply varying inventory management efficiencies, potentially influenced by shifts in sales volume, inventory acquisition, or supply chain management strategies.

Receivables Turnover: Receivables turnover fluctuated amid generally high efficiency levels, starting at approximately 10.23 in September 2020 and experiencing reductions in the following periods, notably reaching a low of 6.20 in June 2023. Post this trough, the ratio increased again, attaining 9.25 by June 2025. These movements reflect varying collection efficiencies, with periods of slower collections possibly coinciding with sales expansion or changes in credit policies, and periods of improvement indicating enhanced receivables management.

Payables Turnover: The payables turnover ratio exhibited notable volatility. Initially elevated at 8.33 in September 2020, it decreased significantly reaching a low point of 4.94 in June 2021, then fluctuated, peaking sharply at 33.19 in December 2024 before declining again to 15.24 in June 2025. The high ratios in late 2024 suggest extended payment periods to suppliers, which could indicate efforts to optimize working capital, negotiate longer terms, or cash flow management strategies. Conversely, the earlier decreased ratios suggest periods of prompt payments or shorter credit periods granted by suppliers.

Working Capital Turnover: This ratio remained relatively stable through most periods, with values oscillating narrowly around 3.7 to 4.09 until March 2024. A notable decline is observed in March 2024 to 1.86, followed by a gradual recovery to approximately 2.67 by June 2025. The decline indicates a reduction in the efficiency of working capital utilization, possibly reflecting increased working capital investments or decreased revenue efficiency in relation to working capital levels.

Overall, the activity ratios depict periods of operational adjustment. The inventory turnover and receivables turnover fluctuations suggest shifts in inventory and credit collection efficiency, respectively. The volatility in payables turnover indicates strategic changes in supplier payment terms, impacting liquidity and working capital management. The general trend suggests a company actively managing and adjusting its operational processes to align with market conditions and internal strategies, with notable improvements in certain ratios occurring around late 2024 through mid-2025.

Average number of days

		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
Days of inventory on hand (DOH)	days	87.42	73.81	72.00	110.25	124.45	151.57	116.39	122.79	90.34	104.60	94.99	126.58	128.33	146.00	141.32	131.61	125.69	114.88	107.63	101.73
Days of sales outstanding (DSO)	days	39.45	44.97	53.64	53.02	64.98	50.96	59.29	41.77	58.84	37.31	42.19	44.68	58.62	53.59	43.54	43.68	47.59	43.93	36.15	35.69
Number of days of payables	days	23.94	12.26	11.00	37.63	43.62	40.15	59.52	64.85	48.55	43.58	37.41	57.24	54.42	71.65	70.49	62.73	73.94	59.10	52.82	43.82

The analysis of Super Micro Computer Inc.'s activity ratios reveals notable trends over the specified periods, providing insights into the company’s operational efficiency and working capital management.

Days of Inventory on Hand (DOH):
The DOH ratio demonstrates fluctuations between approximately 72 days and a peak of 151.57 days, indicating variability in inventory holding periods. A significant increase from around 101.73 days in September 2020 to over 146 days in March 2022 suggests a period of inventory accumulation, possibly due to overstocking or strategic stockpiling. The subsequent decline to a low of approximately 72 days in December 2024 suggests improved inventory turnover and efficiency, though some periods show renewed increases, such as in March 2024 (151.57 days), implying potential inventory build-up or slower sales during those times.

Days of Sales Outstanding (DSO):
The DSO fluctuates between roughly 35.69 and 64.98 days. Notably, the DSO increased from early 2021, peaking at approximately 58.84 days in June 2023, before trending downward to around 39.45 days in June 2025. These movements imply periodical delays in collecting receivables, with longer collection cycles during certain quarters, potentially affecting liquidity. The recent downward trend into the mid-2025 period indicates an improvement in receivables management, likely enhancing cash flow efficiency.

Number of Days of Payables:
This ratio varies considerably, from a minimum of about 11 days in December 2024 to a maximum of approximately 73.94 days in June 2021. Extended payable periods observed in 2021 (up to ~74 days) might reflect strategic supplier negotiations or cash conservation strategies, while the sharp reductions towards late 2024 and early 2025, notably to around 11-12 days, could indicate tighter payment policies or cash flow constraints. The fluctuations denote active management of payable terms, which directly impacts liquidity and supplier relationships.

Overall Interpretation:
The activity ratios suggest periods of inventory accumulation and tighter receivables collection, coupled with strategic adjustments in payment terms. The trend toward reducing inventory days and receivables days in the later periods points to efforts in optimizing operational efficiency and improving cash conversion cycles. Conversely, prior periods of elevated DOH and DSO indicate challenges with inventory turnover and receivable collection that may have impacted overall liquidity.

In summary, Super Micro Computer Inc. has experienced significant fluctuations in inventory holding, receivables collection, and payables management over the analyzed periods, reflecting ongoing operational adjustments aimed at balancing inventory levels, enhancing cash flow, and managing supplier payments strategically.

Long-term

	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
Fixed asset turnover	—	—	—	—	—	—	—	—	24.54	22.67	22.98	20.69	18.17	16.40	14.88	13.47	12.95	12.74	12.77	13.65
Total asset turnover	1.57	2.01	2.14	1.73	1.51	1.33	1.71	1.80	1.94	2.06	2.16	1.82	1.62	1.51	1.56	1.58	1.59	1.69	1.72	1.82

The long-term activity ratios of Super Micro Computer Inc., specifically the Fixed Asset Turnover and Total Asset Turnover ratios, demonstrate notable trends over the period from September 2020 to early 2024.

Fixed Asset Turnover:
This ratio indicates how effectively the company utilizes its fixed assets to generate sales. Starting at 13.65 times in September 2020, the ratio experienced a consistent upward trajectory, reaching 24.54 by June 2023. This indicates a significant improvement in the company's ability to generate revenue from its fixed assets, possibly due to better asset management, increased efficiency, or strategic asset utilization. The ratio remained high through the period, with data missing afterward, suggesting sustained or improved asset productivity up to that point.

Total Asset Turnover:
Reflecting overall asset utilization, this ratio declined from 1.82 in September 2020 to as low as 1.33 in March 2024. Despite periodic fluctuations, there was an observable downward trend during the initial phases, with some recovery in late 2022 and 2023. Notably, it increased from 1.51 in June 2022 to 2.14 in December 2022, indicating improved efficiency in utilizing the total asset base during this interval. However, the ratio then decreased again to 1.33 in March 2024 before showing signs of recovery towards 2.01 in March 2025.

Overall Assessment:
The data suggests that Super Micro Computer Inc. significantly enhanced its fixed asset utilization between late 2020 and mid-2023, reflected by the rising Fixed Asset Turnover ratio. Conversely, the Total Asset Turnover ratio experienced a decline over a similar period, hinting that while fixed assets became more efficient, overall asset utilization became less effective or diversified asset bases temporarily less productive. Periodic fluctuations in the total asset ratio highlight potential adjustments in asset management strategies, shifts in sales efficiency, or changes in asset composition. The observed trends point towards strategic improvements in fixed asset efficiency but also indicate some challenges in maintaining total asset efficiency over time.