Super Micro Computer Inc (SMCI)

Working capital 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
Total current assets	US$ in thousands	8,931,960	3,179,430	2,806,320	1,867,260	1,592,760
Total current liabilities	US$ in thousands	2,345,720	1,374,650	1,470,020	968,896	707,635
Working capital turnover		2.28	3.95	3.89	3.96	3.77

June 30, 2024 calculation

Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $14,989,300K ÷ ($8,931,960K – $2,345,720K)
= 2.28

The working capital turnover of Super Micro Computer Inc has been relatively stable over the past few years, ranging from 3.77 to 3.96, indicating the company's efficiency in managing its working capital to generate revenue. However, there was a notable decline in the ratio to 2.28 as of June 30, 2024, which may suggest potential inefficiencies in utilizing its working capital during that period. It is essential for the company to closely monitor this metric and identify strategies to improve its working capital turnover to maintain financial health and optimize operational performance.