Super Micro Computer Inc (SMCI)

Receivables turnover

		Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021	Jun 30, 2020
Revenue	US$ in thousands	14,989,300	7,123,480	5,196,100	3,557,420	3,339,280
Receivables	US$ in thousands	2,737,330	1,148,260	842,911	472,512	412,457
Receivables turnover		5.48	6.20	6.16	7.53	8.10

June 30, 2024 calculation

Receivables turnover = Revenue ÷ Receivables
= $14,989,300K ÷ $2,737,330K
= 5.48

The analysis of Super Micro Computer Inc's receivables turnover reveals a declining trend over the past five years. The receivables turnover ratio, which indicates how efficiently the company collects outstanding credit balances from its customers, decreased from 8.10 in June 2020 to 5.48 in June 2024.

This decline suggests that the company is taking longer to convert its accounts receivable into cash, which could potentially signal issues with the company's credit policies or the quality of its customer base. A lower receivables turnover ratio may also indicate a need for tighter credit control measures to ensure timely collection and improve liquidity.

Overall, the decreasing trend in Super Micro Computer Inc's receivables turnover ratio warrants further investigation into the company's credit management practices and the effectiveness of its collection efforts to optimize cash flow and profitability.