Super Micro Computer Inc (SMCI)
Working capital 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 |
| Total current assets | US$ in thousands | 3,179,430 | 2,806,320 | 1,867,260 | 1,592,760 | 1,421,770 |
| Total current liabilities | US$ in thousands | 1,374,650 | 1,470,020 | 968,896 | 707,635 | 605,969 |
| Working capital turnover | 3.95 | 3.89 | 3.96 | 3.77 | 4.29 |
June 30, 2023 calculation
Working capital turnover = Revenue ÷ (Total current assets – Total current liabilities)
= $7,123,480K ÷ ($3,179,430K – $1,374,650K)
= 3.95
The working capital turnover for Super Micro Computer Inc has shown some fluctuation over the past five years. The ratio indicates how efficiently the company is utilizing its working capital to generate sales. A higher turnover ratio is generally favorable as it suggests that the company is effectively using its working capital to support sales activities.
In the fiscal year ending June 30, 2019, the company achieved a working capital turnover of 4.29, which indicates a high level of efficiency in utilizing its working capital to generate sales. However, this efficiency decreased in the following years, with ratios of 3.77 in 2020, 3.96 in 2021, and 3.89 in 2022. Notably, there was a slight improvement in the efficiency of working capital usage in 2023, with the ratio reaching 3.95.
Overall, the company's working capital turnover has remained relatively stable over the years, albeit with some variations. This suggests that Super Micro Computer Inc has been able to consistently utilize its working capital to support its sales activities, although there has been some fluctuation in efficiency. Further analysis of the company's working capital management and sales strategies would provide insights into the underlying factors driving these fluctuations.
Peer comparison
Jun 30, 2023