Super Micro Computer Inc (SMCI)

Working capital turnover

		Dec 31, 2024	Sep 30, 2024	Jun 30, 2024	Mar 31, 2024	Dec 31, 2023	Sep 30, 2023	Jun 30, 2023	Mar 31, 2023	Dec 31, 2022	Sep 30, 2022	Jun 30, 2022	Mar 31, 2022	Dec 31, 2021	Sep 30, 2021	Jun 30, 2021	Mar 31, 2021	Dec 31, 2020	Sep 30, 2020	Jun 30, 2020	Mar 31, 2020
Revenue (ttm)	US$ in thousands	20,819,880	18,806,840	14,989,250	11,819,520	9,252,750	7,391,030	7,123,490	6,574,090	6,646,280	6,015,500	5,196,100	4,629,620	4,170,011	3,827,897	3,557,417	3,384,563	3,261,090	3,301,727	3,339,281	3,297,389
Total current assets	US$ in thousands	8,667,070	9,851,580	8,931,960	8,063,930	4,842,360	3,570,830	3,179,430	2,715,180	2,649,500	2,879,880	2,806,320	2,678,720	2,293,290	2,036,960	1,867,260	1,639,650	1,544,270	1,479,520	1,592,760	1,648,360
Total current liabilities	US$ in thousands	1,357,810	2,871,100	2,345,720	1,717,700	1,992,090	1,604,820	1,374,650	1,092,380	916,940	1,353,360	1,470,020	1,496,160	1,199,580	1,101,480	968,896	781,996	672,971	589,688	707,635	784,823
Working capital turnover		2.85	2.69	2.28	1.86	3.25	3.76	3.95	4.05	3.84	3.94	3.89	3.91	3.81	4.09	3.96	3.95	3.74	3.71	3.77	3.82

December 31, 2024 calculation

Working capital turnover = Revenue (ttm) ÷ (Total current assets – Total current liabilities)
= $20,819,880K ÷ ($8,667,070K – $1,357,810K)
= 2.85

Super Micro Computer Inc's working capital turnover has shown fluctuations over the past few years. The working capital turnover ratio measures how effectively a company is utilizing its working capital to generate sales revenue.

From March 31, 2020, to March 31, 2021, the company's working capital turnover increased steadily from 3.82 to 3.95, indicating an improvement in the efficiency of working capital management. However, there was a slight dip in the ratio by June 30, 2021, before picking up again to reach 4.09 by September 30, 2021, suggesting a temporary slowdown in working capital efficiency.

The ratio maintained levels above 3.80 until March 31, 2022, indicating consistent efficiency in working capital turnover. From June 30, 2022, the ratio started to fluctuate around the 3.80 mark, indicating some variability in working capital efficiency.

By December 31, 2023, the working capital turnover ratio declined significantly to 3.25, which may raise concerns about the company's ability to efficiently utilize its working capital to generate sales revenue. This downward trend continued into the following years, with ratios of 1.86 on March 31, 2024, and 2.28 on June 30, 2024, indicating a further decline in working capital efficiency.

Overall, the working capital turnover ratio of Super Micro Computer Inc has shown a mixture of improvements and declines over the analyzed period, suggesting varying levels of effectiveness in managing working capital to support sales growth.