Super Micro Computer Inc (SMCI)

Working capital turnover

		Jun 30, 2025	Jun 30, 2024	Jun 30, 2023	Jun 30, 2022	Jun 30, 2021
Revenue	US$ in thousands	21,972,000	14,942,900	7,123,480	5,196,100	3,557,420
Total current assets	US$ in thousands	12,468,100	9,054,620	3,179,430	2,806,320	1,867,260
Total current liabilities	US$ in thousands	2,344,790	2,403,940	1,374,650	1,470,020	968,896
Working capital turnover		2.17	2.25	3.95	3.89	3.96

June 30, 2025 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $21,972,000K ÷ ($12,468,100K – $2,344,790K)
= 2.17

The working capital turnover ratio for Super Micro Computer Inc. demonstrates a relatively stable trend over the period from June 2021 through June 2023, followed by a notable decline extending into the projected figures up to June 2025. Specifically, the ratio was 3.96 in June 2021, slightly decreasing to 3.89 in June 2022, and then marginally increasing again to 3.95 in June 2023. These fluctuations suggest that during this three-year span, the company maintained a steady efficiency in utilizing its working capital to generate sales.

However, a significant shift occurs in the subsequent period, where the ratio drops markedly to 2.25 in June 2024 and marginally increases to 2.28 by June 2025. This substantial decrease indicates a reduction in the efficiency with which the company is using its working capital to support sales activities. A declining working capital turnover ratio generally implies either an increase in working capital relative to sales or a decrease in sales relative to working capital, signaling potential challenges in operational efficiency or changes in working capital management strategies.

Overall, the data indicates that while Super Micro Computer Inc. experienced stable working capital utilization in the early years, the subsequent decline suggests a deterioration in the efficiency of working capital deployment over the recent period and into near-term projections. This trend warrants further analysis to determine underlying causes, such as inventory buildup, receivables management, or sales fluctuations, to better understand its implications on the company’s operational health and liquidity position.