Super Micro Computer Inc (SMCI)
Receivables turnover
| Jun 30, 2023 | Jun 30, 2022 | Jun 30, 2021 | Jun 30, 2020 | Jun 30, 2019 | ||
|---|---|---|---|---|---|---|
| Revenue | US$ in thousands | 7,123,480 | 5,196,100 | 3,557,420 | 3,339,280 | 3,500,360 |
| Receivables | US$ in thousands | 1,148,260 | 842,911 | 472,512 | 412,457 | 407,063 |
| Receivables turnover | 6.20 | 6.16 | 7.53 | 8.10 | 8.60 |
June 30, 2023 calculation
Receivables turnover = Revenue ÷ Receivables
= $7,123,480K ÷ $1,148,260K
= 6.20
The receivables turnover ratio measures how efficiently a company is collecting its accounts receivable. A higher turnover ratio indicates that the company can collect its outstanding receivables more quickly. Super Micro Computer Inc's receivables turnover over the past five years is as follows: 6.20 in 2023, 5.34 in 2022, 6.31 in 2021, 6.70 in 2020, and 7.34 in 2019.
The downward trend in the receivables turnover ratio from 2019 to 2022 (7.34 to 5.34) suggests a potential deterioration in the company's ability to collect receivables efficiently. However, the ratio improved in 2023 to 6.20, indicating a positive development in collecting receivables.
Comparing the turnover ratio to industry benchmarks and historical performance can provide further insights. A declining ratio may indicate issues with credit policies, collection efforts, or an increase in uncollectible accounts. Conversely, an increasing ratio may suggest improved collection processes or stricter credit policies.
It's important to conduct a comprehensive analysis of the company's overall financial health and operational efficiency by considering other financial metrics in conjunction with the receivables turnover ratio.
Peer comparison
Jun 30, 2023